The Life Insurance and Financial Planning Committee the National Conference of Insurance Legislators (NCOIL), Troy, N.Y., is drafting model state legislation that would require life insurers to tell policyholders that life settlements are among the alternatives to letting policies lapse, according to Georgia state Sen. Ralph Hudgens, R-Hull, Ga., the committee chair.

Hudgens says he has asked another committee member, Kentucky state Rep. Ronald Crimm, R-Louisville, Ky., to draft the model bill.

The model bill would require life insurers to advise insureds about all of the alternatives that would be available if the insureds ever decided to give up their policies.

Kentucky, Maine and Washington have enacted similar notice laws, Hudgens says.

Hudgens says he expects the model law to be introduced during the NCOIL annual meeting in Austin, Texas, in November.

Source: LifeandHealthInsuranceNews.com

GAO Releases Life Settlement Report – One of the most talked about current topics in the industry is the report released from the Government Accountability Office.

Midwest Medical Audit shows their Accuracy – The audit on Midwest Medical life expectancy reports was released, and the numbers are pretty scary…

Lifemark and Key Data Portfolio Deal not looking good – Update and article about Lifemark and CarVal deal falling apart.

On another note, if you are a fund, funder, or provider, now is the time to pick up a great domain asset and establish your online presence.

Life Settlement Funder Domain for Sale – The one of a kinda LifeSettlementFunder.com domain for only $395!

New York Life Settlement Fees

This is positive news…

Bowing to pressure from the life settlement industry, the New York State Insurance Department has cut the licensing fee it will charge providers from $20,000 to $10,000.

Settlement industry representatives had objected to the $20,000 fee, which was proposed by Insurance Department Superintendent James Wrynn in a draft of emergency regulations to put New York’s new life settlement law into effect. Licensing fees charged by other states generally range from $500 to $1,000.

New York officials lowered the fee in the final version of the emergency regulations published Friday, after hearing complaints from settlement industry representatives.

Licensing fees and biennial fees of $40 for brokers remained the same from the earlier draft proposal.

Source: Regulations

Susman Godfrey Wins Summary Judgment in $5 Million Life Settlement Rescission Lawsuit

A New York state court recently rejected as a matter of law an insurance company’s attempt to rescind a $5 million life insurance policy, holding that the insurer – Lincoln Life & Annuity Company of New York – waived its rights to obtain rescission by seeking and accepting premium payments after it filed its lawsuit.  The trial litigation firm Susman Godfrey L.L.P. represents the victorious policy owner.  Lincoln’s lawsuit was based on allegations that the insurance policy lacked an insurable interest because it was procured by third-parties for investment purposes.  The policy owner vigorously defended the legitimacy of the policy, and also contended that Lincoln’s post-litigation conduct — which included the acceptance of over $100,000 in additional premium payments, premiums Lincoln sought to retain in its lawsuit — barred Lincoln’s claims.  The court agreed, and dismissed Lincoln’s suit after granting Susman Godfrey’s motion for summary judgment.

Steven Sklaver and Arun Subramanian, attorneys in Susman Godfrey’s Los Angeles and New York offices, represent the policy owner. “Lincoln tried to rescind an insurance policy, but at the same time it demanded, accepted and tried to keep the policy owner’s payments for continued coverage.  The Court’s thoughtful ruling is a clear rejection of this practice,” Mr. Sklaver said.  Susman Godfrey is a 90-lawyer litigation boutique with offices nationwide, and represents numerous investors and trusts in life settlement litigation across the country.

The case is Lincoln Life & Annuity Co. of New York v. Jonathan Berck, as Trustee of the Rosamond Janis Insurance Trust, No. 17362/08 (N.Y. Sup. Ct., Westchester Cty. 2009).

Source: Susman Godfrey L.L.P.

Susman Godfrey Life Settlement Case

The weakness was largely due to a persistent imbalance between available policies and active buyers in the life settlement market, says Amrita. Traditional sources of policy origination such as life settlement brokers, consumers and other intermediaries continue to feed supply into a market showing limited demand.

The February index results reflect some tightening of buying appetites while life settlement provider buying demands remain conservative overall, Amrita states.

The weaker-than-expected demand for life insurance policies on the secondary market resulted in a 14% decline, from 528 points to 454 points on the index, developed by Amrita Financial Inc., Oceanside, Calif.

More details and information will be shared once we receive it.

Producers and brokers have relayed information that providers are “cherry picking” the best policies and paying the lowest amounts. This could also have to do with the decline…

Source: NU ONLINE NEWS SERVICE

Amrita Life Settlement Index

“Fresh off its final day in Zurich, both LISA and ELSA are receiving strong calls for additional events to advance the many relationships established in the past week,” explained Jim Connolly, Managing Editor of Life Settlement Review (LSR). LSR, a leading industry monthly publication, provided in-depth daily coverage of the Trade Mission. “The reception we’ve received has been tremendous. The excellent results produced by this event could not have been realized without the work and professionalism of ELSA, the LISA Events Department, the Trade Mission Committee and our honored speakers,” declared Will Menezes, LISA Business Manager. “We fully intend to build upon the good work of all involved.”

Source: Press

Helpful links:
Life Settlement Conference
Life Settlement Information

London Life Settlement Conference

Upcoming Life Settlement Conference is right around the corner…

The International Life Settlements Conference
March 22 & 23, Marriott Grosvenor Square, London

The Life Settlements industry continues to evolve with new regulation and legislation surrounding the market. The International Life Settlements Conference examines all of the latest developments, with an emphasis on what investors are looking for, how the industry can better position itself for growth, and what it will take to see a return of funding to the market.
This is the premier gathering for Life Settlements professionals, European investors and limited partners.

The agenda includes discussions on legislation, regulation, litigation, tax concerns for overseas funds, securitization, synthetic structures, pension fund longevity swaps, headline risk, life extension risk, underwriting issues, and insurance event linked securities.
Presented by an international faculty, this two-day agenda provides education you won’t receive anywhere else. The agenda also features “The Life Settlements Investors Roundtable”, the largest gathering of active Life Settlements investors on one stage.

More info:
Life Settlement Conference
Deal Flow London

David Paterson

The New York insurance department will require agents and brokers to disclosure how much commission is being paid and by whom, if New Yorkers contemplating an insurance policy request the information, according to a statement released by the department.

The regulation will be published in the February 10, 2010 issue of the State Register, and its requirements will take effect as of January 1, 2011.

More details will be posted on:
Life Settlement License
New York Life Settlement

Credit Suisse

Credit Suisse spokesperson Duncan King confirmed that seven employees in its Life Finance Group in New York were laid off in early February and that another 10 were reassigned. However, he declined comment on whether the investment bank, based in New York, is planning on exiting the life settlement market entirely. The Life Finance Group’s Web page says it has 90 employees in New York, London and Hong Kong.

Source: Life Settlement Review

The model language, which the department suggests should be used in brochures provided to consumers by settlement firms, is available through a new section on life settlements that the agency has posted on its website.

Review the New York Language Page

New York’s Department Life Settlement Page

More info will be posted when we receive it.

New York Life Settlement Department