New York Child Abuse Identification and Reporting Practice Exam

What does the NCOIL Act primarily focus on?

1. Employee health benefits

2. Nursing home regulations

3. Addressing STOLI and IOLI practices

4. Life expectancy research

The correct answer is: Addressing STOLI and IOLI practices

The NCOIL Act primarily addresses STOLI (Stranger-Originated Life Insurance) and IOLI (Investor-Owned Life Insurance) practices. These practices involve the purchasing of life insurance policies for the purpose of selling them to third parties for profit, which can raise ethical concerns and issues regarding the intent of insurance coverage. The act seeks to ensure that life insurance practices are conducted fairly and ethically, protecting consumers from potential exploitation. By regulating STOLI and IOLI, the NCOIL Act aims to maintain the integrity of the insurance market and to safeguard public interest, particularly among consumers who might not fully understand the implications of these investment practices. This focus highlights the importance of oversight in the life insurance sector, where the motivations behind purchasing policies need to be transparent and legitimate.