INSTITUTIONALLY FUNDED COMPANIES FORM NEW TRADE ASSOCATION FOR LIFE SETTLEMENTS
WASHINGTON, D.C. January 28, 2002 - Six institutionally funded life settlement companies today announced the formation of the Life Settlement Institute.
The Life Settlement Institute was formed in response to the need to promote public awareness of the benefits of Life Settlements and to present the viewpoint of institutionally funded Life Settlement providers and financing entities to policy owners, state regulators and self-regulatory organizations.
Life Settlements involve the purchase of life insurance policies from persons generally over the age of 65 who have policies they no longer want or need. These transactions permit the owners of such policies to obtain more than the cash surrender value of the policy.
During the past several years, there has been increased regulatory focus on this market place. A great deal of that focus has been on companies that have raised funds from private investors to purchase policies. Life Settlement Institute members do not use private investor funds to purchase life insurance policies. They are funded exclusively from institutional sources, such as banks, insurance companies, and investment banking firms.
Members of the Life Settlement Institute are committed to strict regulation of the Life Settlement market and to the elimination of inappropriate practices.
The Life Settlement Institute will promote the development of a Life Settlement industry with the highest ethical standards, premised upon the adoption of comprehensive procedural safeguards to protect policy owners and the adoption of fraud prevention policies and procedures. The Life Settlement Institute will work with state regulators and others on these important issues
Founding members of the Life Settlement Institute include:
- Coventry First, LLC; Fort Washington, PA
- Life Capital, BV; San Diego, CA
- Life Equity, LLC; Hudson, OH
- Life Settlement Corporation d/b/a Peachtree Life Settlements; Boca Raton, FL
- Living Benefits Financial Services, LLC; Minnetonka, MN
- Stone Street Financial, Inc.; Bethesda, MD
General Members must either be institutionally funded Life Settlement providers who are licensed as such in at least one state, or an institutionally funded financing entity of Life Settlement providers with such activity being the financing entity’s primary business. Each General Member must have a financing commitment of at least $50 million dollars.
The Founding General Members of the Institute have the capacity to purchase in excess of One Billion Dollars of eligible Life Settlement polices.
Membership is also available to qualified companies that provide institutional services, such as legal services, funding or servicing, to the Life Settlement industry.
Members must pledge to uphold the Institute’s stringent Code of Conduct and undergo a strict membership application approval process.
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