"House Bill 404 Targets 'Stranger' Life Insurance"
In Ohio, state Rep. Jay Hottinger (R-Newark) introduced legislation to alter the way stranger-originated life insurance (STOLI) is regulated. The bill went before the state House's subcommittee on Stranger Originated Life Insurance Reform on Dec. 18, where representatives from the life settlement industry testified. Another hearing was scheduled for Jan. 9, at which time lawmakers will look at amendments to the legislation. Ohio Department of Insurance director Mary Jo Hudson says STOLI targets the 65 to 85 age segment, and fraud could become a problem because these individuals typically do not understand policy terms.
