Research On Legal Issues Of Life Settlement

In the 1980s,AIDS raged in the United States.Due to the huge medical expenses and the lack of effective treatment drugs,these AIDS patients were faced with unemployment,cut off their income sources and sharply reduced their living standards.Many patients with life insurance policies are unable to renew their premiums.In order to obtain sufficient medical expenses,many patients sell their own life insurance policies.Where there is demand,there is a market,and Life Settlement companies specializing in the acquisition of life insurance policies have emerged as the times require,thus creating a market of Life Settlement.The transaction process of Life Settlement is the policyholder sells the life insurance policy at a discount to the Life Settlement company,and the investor purchases the policy from the Life Settlement company and pays subsequent premiums to become the beneficiary of the insurance.The discounted object of current Life Settlement is no longer limited to terminally ill patients,and has gradually evolved into a new type of investment tool.Life Settlement has the advantages of high discount rate,low investment risk,and low default risk.With the accelerating aging process in China,the burden of family pension is getting heavier and heavier,which leads to the urgent demand for Life Settlement.At present,this new investment tool has been explored and practiced in China’s insurance market.However,this system has not yet risen to the legislative level.However,our "Insurance Law" has not yet provided clear regulations on Life Settlement.In addition,in China,Life Settlement market is immature and lacks supervision,which can easily lead to moral hazard and affect the interests of all parties to the transaction.In order to effectively solve the above problems,after understanding the overview of the Life Settlement system,the main body of operation and the method,through the inspection of the Life Settlement system in the United States,and learning from its excellent experience,it puts forward perfect suggestions for the development of the Life Settlement business in my country It should be stipulated in three aspects: legislative revision,improvement of related supporting mechanisms,and insurance supervision.In addition to the introduction and conclusion,the main content of the article is as follows:The second chapter defines the basic theory of Life Settlement,introduces the origin,development and concept of Life Settlementt,which has the characteristics of high yield,low investment risk,low default risk and high moral hazard,analyzes the main participants in the process of Life Settlement,and introduces two operation modes of Life Settlement in the development process,from the initial simple direct transaction mode to the indirect operation mode involving more subjects,less moral hazard and safer transaction mode,as well as the securitization of Life Settlement.The third chapter discusses the current situation and existing problems of Life Settlement in China,introduces the preliminary exploration,legislation and practice of Life Settlement in China,and analyzes the current situation of China’s insurance market.After the introduction of Life Settlement in China,there may be some problems such as lack of relevant laws and regulations,moral hazard and imperfect supervision system.The fourth chapter is an investigation of the legal system of Life Settlement in the United States.It introduces introduces the Life Settlement Model Act and the special legislation on Life Settlement.By introducing the United States’ regulation,design,pricing,risk prevention and control of Life Settlement Model Act,a brief analysis is made.The fifth chapter puts forward some suggestions on the improvement of the legal system of Life Settlement in China.Through the analysis of the social and economic environment such as the current legislative situation and the current practice situation in China,we can see that there is a great potential demand for Life Settlement in China.We should draw on the experience of foreign laws and combine with our country’s development status to put forward its own suggestions on the Life Settlement in terms of perfecting special legislation,perfecting related supporting mechanisms,and strengthening supervision.