The American Council of Life Insurers' (ACLI) call for a ban on life settlement securitizations has been met by some opposition that believes closing this segment of the market could hurt consumers.

On Feb.3, the ACLI released a statement asking policymakers to ban the securitization of life insurance policies sold in the secondary market. ACLI said that securitization of life insurance settlements exposes senior citizens and investors to increased risk of fraud related to the illegal stranger-originated life insurance (STOLI) transactions, the statement said.

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