On September 11, 2008 Ohio's new law aimed at eliminating Stranger-Originated Life Insurance (STOLI) transactions takes effect.
A hybrid of the NAIC and NCOIL Models, the Ohio law includes both a prohibition on marketing and issuing STOLI and a five-year "waiting period" before settlement of policies with STOLI characteristics.
The Ohio Department of Insurance now has additional oversight authority over life settlement brokers and providers and will require life settlement providers to submit certain data to the Department on an annual basis.
Life insurers issuing new business in Ohio will be required to report to the Ohio Department of Insurance annually about their anti-STOLI efforts and to include in their applications questions intended to identify STOLI transactions. Compliance with these provisions is not required until after the Insurance Department issues further guidance.
Visit Bricker & Eckler's STOLI Resource Center for a summary of Ohio's new anti- STOLI law and for information about other STOLI-related developments.