Archive for November, 2009

Law Seeks to Ban Misuse of Genetic Testing

The most important new antidiscrimination law in two decades — the Genetic Information Nondiscrimination Act — will take effect in the nation’s workplaces next weekend, prohibiting employers from requesting genetic testing or considering someone’s genetic background in hiring, firing or promotions.

The act also prohibits health insurers and group plans from requiring such testing or using genetic information — like a family history of heart disease — to deny coverage or set premiums or deductibles.

“It doesn’t matter who’s asking for genetic information, if it’s the employer or the insurer, the point is you can’t ask for it,” said John C. Stivarius Jr., a trial lawyer based in Atlanta who advises businesses about the new law.

The biggest change resulting from the law is that it will — except in a few circumstances — prohibit employers and health insurers from asking employees to give their family medical histories. The law also bans group health plans from the common practice of rewarding workers, often with lower premiums or one-time payments, if they give their family medical histories when completing health risk questionnaires.

“Genetic information is very broad,” said J. D. Piro, a principal in the Health Care Law Group at Hewitt Associates. “It doesn’t simply include my own genetic information, such as do I have a risk for cancer. It also includes my family medical history — do I have any relatives who have had cancer or leukemia.”

Genetic tests help determine whether someone is at risk of developing an inherited disease or medical condition. These tests identify variations in genes, like whether a woman has a predisposition for ovarian cancer. Read the rest of this entry

November 21st, 2009
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Thoughts on the LISA Fall Conference in New York

It seemed to me that the mood at the LISA Conference last week was much more downbeat than I had expected. Yes, this has been a challenging year for most companies in the Life Settlement industry. For some companies, it may even be two tough years in a row. I think the important thing to keep in mind is that this is not unique to our industry. We are in the midst of one of the most challenging economic environments in U.S. history. I heard many people question the long-term viability of the industry. I can tell you that I was not one of them. I have spent much of this year travelling around the world, and I believe that the potential for explosive growth in the Life Settlement market is out there. Just, not yet. The good news about life settlements is that the investment thesis is better now than ever – investors are desperate for low-correlated investments. The bad news is that “exotic” and “illiquid” are four letter words these days. I truly believe that we are headed in the right direction, though. Ultimately, good products and ideas get traction. At the same time, as the marketplace becomes more palatable to investors – better regulations and market conduct, investment return track records, substantial LE historical performance – capital will come into the asset class. The reality out there is not so good right now, but off in the horizon, I see a bright future.

November 19th, 2009
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New York Legislature OKs bill regulating life settlements

Bill requires greater compensation disclosure for brokers, curbs excessive pay

November 17, 2009, 12:19 PM EST

New York’s state Legislature has passed a bill that would to regulate life settlements, requiring brokers and intermediaries to get their insurance licenses.

The bill, which passed the Assembly yesterday after earlier action by the Senate, would not only place life settlement providers and brokers under the state Insurance Department’s purview, but also would prohibit stranger-originated life insurance practices. Such practices involve soliciting a person to buy an insurance policy for the express purpose of selling it to outside investors.

“We’re happy New York state is joining the ranks of states that are regulated with laws based on the National Conference of Insurance Legislators’ model,” said Doug Head, executive director of the Life Insurance Settlement Association.

That life settlements model allows policyholders to sell their policies two years after issuance, while the National Association of Insurance Commissioners’ model act requires policyholders to keep their policies for at least five years before selling them.

The New York bill, which now awaits Gov. David Paterson’s signature, also requires compensation disclosure for life settlement brokers. Brokers would be prohibited from receiving compensation for reviewing a life settlement contract or for giving advice — unless the payment is based on a written memo that’s signed by the party being charged and that specifies the extent of the payment.

The bill also bans excessive pay by barring settlement brokers from receiving compensation from providers if the brokers have already received payment from the owner of a contract. Policyholders would not be allowed to sell their policies until at least two years after they had been issued.

Mr. Head was not pleased by several of the compensation-related requirements in the bill. He’s also concerned by the penalties set up in the legislation. Violators could be prosecuted under state insurance laws and face felony charges if they wrongfully attempt to obtain property that’s worth more than $25,000.

“The penalties are extraordinary; you have some draconian consequences,” said Mr. Head. Those kinds of issues continue to trouble us. They’re punitive and designed to slow down the settlements industry or to scare people, but we have every confidence that our members are doing business properly,” he addedThe bill, which passed the Assembly yesterday after earlier action by the Senate, would not only place life settlement providers and brokers under the state Insurance Department’s purview, but also would prohibit stranger-originated life insurance practices. Such practices involve soliciting a person to buy an insurance policy for the express purpose of selling it to outside investors.

“We’re happy New York state is joining the ranks of states that are regulated with laws based on the National Conference of Insurance Legislators’ model,” said Doug Head, executive director of the Life Insurance Settlement Association.

That life settlements model allows policyholders to sell their policies two years after issuance, while the National Association of Insurance Commissioners’ model act requires policyholders to keep their policies for at least five years before selling them.

The New York bill, which now awaits Gov. David Paterson’s signature, also requires compensation disclosure for life settlement brokers. Brokers would be prohibited from receiving compensation for reviewing a life settlement contract or for giving advice — unless the payment is based on a written memo that’s signed by the party being charged and that specifies the extent of the payment.

The bill also bans excessive pay by barring settlement brokers from receiving compensation from providers if the brokers have already received payment from the owner of a contract. Policyholders would not be allowed to sell their policies until at least two years after they had been issued.

Mr. Head was not pleased by several of the compensation-related requirements in the bill. He’s also concerned by the penalties set up in the legislation. Violators could be prosecuted under state insurance laws and face felony charges if they wrongfully attempt to obtain property that’s worth more than $25,000.

“The penalties are extraordinary; you have some draconian consequences,” said Mr. Head. Those kinds of issues continue to trouble us. They’re punitive and designed to slow down the settlements industry or to scare people, but we have every confidence that our members are doing business properly,” he added

Source: Investment News, by Darla Mercado

http://us1.campaign-archive.com/?u=102d4c475f26cb863b2708e19&id=565fe44434&e=PoDPoysFBA

November 18th, 2009
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Emergency Influenza Containment Act

On November 3, 2009, a Bill, referred to as the “Emergency Influenza Containment Act”, was introduced into the House of Representatives. This Bill, likely prompted by the H1N1 outbreak, would provide an employee with up to five (5) days of paid sick leave per twelve (12) month period when the employer “directs an employee to leave work or not to come in to work because the employer believes the employee has symptoms of a contagious illness, or has been in close contact with an individual who has symptoms of a contagious illness . . . .” (H.R. 3991). Notably, an employer who fails to provide such paid sick leave pursuant to this Bill would be deemed to be in violation of the Fair Labor Standards Act insofar as, among other things, being considered to have willfully failed to pay minimum wage to the affected employee. The Bill would be effective no later than fifteen (15) days after the date of enactment, would apply to businesses with fifteen (15) or more employees, and would specifically apply to “influenza-like-illnesses such as the novel H1N1 virus.”

November 13th, 2009
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