A federal court held that life settlements were securities under federal and Illinois law.  As such, certain sellers violated the securities laws when they lied about having done due diligence.  The court also found that a reasonable jury could conclude that the sellers violated the Illinois Consumer Fraud Act.  See Giger v. Ashmann (ND Ill).

The SEC Staff would not recommend enforcement action if insurance agencies enter into insurance networking arrangements with registered broker-dealers for the offer and sale of variable products and make transaction-based payments based on the sale of these products without registering as broker-dealers.

Historically, state insurance laws prohibited brokers from receiving insurance commissions without being licensed