Senator Sean Burrage
Co-Chairman of Senate Committee on Rules
Senate District 2
Rogers and Mayes Counties
For Immediate Release: May 8, 2008
Sen. Sean Burrage
Passes Bill To Protected Oklahoma Seniors from Life Insurance Schemes
Burrage Plan Headed to Governor’s Desk for Approval
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
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.”
For more information contact:
Senator Burrage's Office: (405) 521-5555