>WASHINGTON, July 22 — The American Council of Life Insurers issued the following news release:

Frank Keating, president and CEO of the American Council of Life Insurers (ACLI), issued the following statement on the Securities and Exchange Commission (SEC) Life Settlements Task Force report on life settlements:

Washington, D.C. (July 22, 2010)–”We acknowledge the SEC and its Life Settlements Task Force for its thorough and thoughtful analysis of the life settlement market and the regulatory gaps that could expose investors to a variety of risks, including the very real possibility that settlement packages will be infected with stranger-originated life insurance (STOLI) transactions. The report addresses many of ACLI’s concerns with this market. The Task Force’s analysis is bolstered in many areas by a separate report issued today by the Government Accountability Office.

“In STOLI transactions, investors or middlemen approach seniors and encourage them to purchase life insurance policies they otherwise would not buy solely to transfer the policies to the investors. The investors hope to profit by receiving the death benefits after the seniors die. These transactions violate state laws and if discovered, the policies issued may be rescinded. Unwary investors thus face a substantial risk of loss.

“As the SEC Task Force report shows, there is a lack of transparency in life settlements and uncertainty over regulation of a market that has been awash in litigation. ACLI hopes that the report will add new momentum to efforts in the states and in Congress to protect investors, as well as senior citizens.

“ACLI will carefully study the Task Force’s policy recommendations and discuss them with our member companies. The Task Force report represents a major step in advancing the discussion of the life settlement industry and the need to enhance regulation of it.”

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