A bill that would protect Oklahoma senior citizens in life-insurance scams was unanimously approved today by the Oklahoma State Senate. Senate Bill 1980, authored by Senator Sean Burrage, now goes to Governor Brad Henry’s desk for approval.Burrage, a Democrat from Claremore, said his proposal creates the Oklahoma Viatical Settlements Act of 2008. He said the new law will protect senior citizens from a growing national trend where unsavory investors provide a financial incentive for a senior citizen to purchase a policy and agree to sign-over ownership of the benefits after a set amount of time has expired. The practice is called “stranger-originated life insurance” (STOLI) and is designed to provide investors profits from the deaths of Oklahoma senior citizens.
“Today, we took a step in the right direction to better protect Oklahoma senior citizens from financial predators,” Burrage said. “Outlawing these types of transactions will make fiscal predators think twice about trying to strike a quick pay day in Oklahoma.”
Burrage said shady investors are hoping the death of an insured senior will lead to a monetary payment.
“Very simply, that is wrong and it is immoral,” Burrage said. “These money-making plots pervert the purpose of life insurance and prey on people in a time crisis. We have a responsibility to protect the benefits of our senior citizens and their families.”
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