The Ohio Department of Insurance has promulgated new rules implementing H.B. 404, Ohio's anti-stranger originated life insurance(STOLI) statute. The rules will become effective on November 5, 2010.
Applications for certain life insurance policies must include questions designed to identify and prevent stranger-originated life insurance. Compliance with the rule is required by November 2011. The rule exempts certain types of life insurance, including term life and all life policies with a face amount under $50,000. Amended application forms must be submitted to the Ohio Department of Insurance for approval.
Rules governing the licensure and activities of life settlement providers and brokers, as well as continuing education requirements for settlement brokers, have also been adopted.
Ohio Administrative Code § 3901-9-01
Ohio Administrative Code § 3901-9-02
Ohio Administrative Code § 3901-9-03
Ohio Administrative Code § 3901-9-04