SOURCE: Life Insurance Settlement Association
(Marketwire – February 5, 2010)
Feb 05, 2010 | Orlando, FL

Russel Dorsett, President of the Life Insurance Settlement Association (LISA), released the following statement:

“On February 3, 2010, the American Council of Life Insurers (ACLI) published a recommendation that the securitization of life settlements ‘be prohibited by legislation or regulation.’ This is an extraordinary pronouncement from an industry that has consistently asserted that there is a legitimate place for life settlements in the market and that life settlements are a valuable financial tool for seniors. The recent ACLI position is not only an affront to the principal of free and open capital markets, but it cynically portrays them as a protector of consumers, when in fact, their objective is to deprive consumers of their right to receive a true market value from a financial asset: a life insurance policy which is no longer needed, wanted, or affordable; one for which they have paid good money, often for many years.

“This ‘recommendation’ is sensationalistic nonsense, larded with half-truths leavened by out-right lies. The ACLI knowingly attempts to confuse not only the public but public policymakers by equating legitimate life settlements with stranger-originated life insurance (STOLI) while characterizing the licensed and regulated intermediaries involved in the life settlement industry as ‘STOLI promoters’ preying upon seniors.

“The reality is that STOLI is a primary market problem, whereby a new insurance policy is applied for and issued in the absence of a valid insurable interest. In that context, the real ‘STOLI promoters’ are unscrupulous life insurance agents appointed by the very companies that constitute the membership base of the ACLI, as well as the life insurance companies themselves when they fail in their most fundamental underwriting responsibility: to establish a clear and valid insurable interest at the inception of the policy. LISA has consistently supported legislation in the states which makes clear to all parties that improper origination will result in a permanently invalid policy and to ensure that Insurers carry out their responsibilities at origination, not many years after issuing the policy.

“From a secondary market perspective, stranger-originated life insurance simply does not make financial sense. A newly issued life insurance policy which has been properly priced and underwritten has no value as a life settlement. Nor will it have any value in two years — or five years — unless the insured undergoes a substantial change in health. The notion that the securitization of life settlements would create a pool of capital dedicated to creating worthless life insurance contracts flies in the face of economic logic.

“‘Securitization,’ according to a recent ACLI statement, ‘is a very effective means of market-making and encouraging rapid expansion’ of any industry. More capital in the settlement market makes it likely that prices paid to consumers in the secondary market will increase, and more consumers will receive more value for their unwanted and unneeded life insurance policies. It is hard to see how that would not be a good thing for seniors owning unwanted policies with a minimal cash surrender value and ongoing premiums they no longer afford or want to pay.

“From the standpoint of investors, a properly constructed portfolio of settled life insurance policies offers the potential for steady returns over long durations with low credit risk and relatively minimal correlation with other asset classes. Securitization of these portfolios, if done properly, would allow more long term institutional money managers to add longevity risk to their investment mix when and as they feel it is appropriate. LISA recognizes that there are a number of hurdles to securitization; the marketplace will either overcome them, or it will not. Any investment in any asset class has risks. To imply that the magnitude of risk associated with life settlements as an asset class is so overwhelming that a ban by regulatory fiat is required is nothing short of astonishing. It is a repudiation of the very techniques increasingly in use by insurers to provide for reserve capital for their policies.

“We at LISA believe that Consumers and Investors (and this includes well informed seniors), are in the best position to determine what is in their own best financial interests and should be fully informed of the risks and opportunities of any financial decision. We also believe that well regulated markets operating in an open and transparent fashion are the heart and soul of the U.S. economy. That the ACLI would suggest otherwise is incomprehensible. With all the real issues public policymakers — not to mention the life industry — have on their plates, asserting an ill thought-out and unnecessary proposal like this one borders on the absurd.”

Russel Dorsett
LISA President

For more about the association, visit www.thevoiceoftheindustry.com.

Goldman Sachs Group Inc., New York, is shutting down its life settlement unit, a company spokesman acknowledges.

The company is already winding down operations at the unit, Longmore Capital, Southborough, Mass., in what Goldman Sachs spokesman Michael DuVally terms “a commercial decision.”

“When we entered the business in 2006, we thought the market had the potential to grow into an institutional marketplace,” DuVally says. “That did not prove to be the case, and we expect the market to remain small.”

Goldman’s retreat from settlements occurs against a backdrop of adverse publicity the company has received for its involvement with the discredited mortgage-backed security market. It has also been called on to testify on life settlement securitization by the Senate Finance Committee, a fact that might not have encouraged Goldman’s top management to think kindly toward another potentially controversial investment.

Reactions from executives in the business ranged from dismay to mild surprise.

Rich Nemet, partner, Life Settlement Company Of America, Livingston, N.J., called Goldman’s withdrawal “a crushing blow to the industry” in terms of the its public image. “But I don’t think it’s shocking to people in the industry. The reality is, the business was just too small for them,” he says.

Goldman also may have been turned off by the process of securing a life settlement deal. Many companies entering the business find that process is much lengthier than they first thought, he adds.

Nemet believes, too, the market for settlements has often been “grossly overstated” by experts in the industry.

Ronnie Katz, president, Settlements for Life L.L.C., Memphis, Tenn., called Goldman Sachs’ retreat “no surprise.”

“Right now in the industry, supply is more limited than we had hoped for, both on the policy and capital sides,” Katz says. “But there are always deals in the works. Many entities are working on bond [life settlement securitization] issues. At some point, I think there will be a breakthrough in bond issues.”

Katz predicts the industry will rebound to the point where Goldman will consider getting back into the business.

Russel Dorsett, director of Veris Settlement Partners, Rockville, Md., and president of the Life Insurance Settlement Association, Orlando, Fla., thinks Goldman’s withdrawal may have been at least partly due to a perceived risk to its reputation due to occasional adverse publicity about settlements.

Dorsett adds that many producers have also left the settlement market after lengthened life expectancy projections cut expected financial returns. With fewer agents looking for policies, the practical opportunities are less than they were two years ago, he says.

Katz agrees that there has been a decline of interest by potential sellers of life policies because they aren’t being quoted the prices that they had expected for their policies.

Still, despite Goldman’s departure, there are opportunities in the market, Katz says. He reports he recently helped to broker a portfolio of around 350 policies totaling over $2 billion in face value. It was not part of a bond deal but rather a sale to an entity that bought the package strictly as an investment, he says.

Other executives agree the life settlement business has much promise.

Nemet observes that sales by consumers have always been driven by agents, many of whom are not bringing deals to clients right now. “Many agents have thrown their hands up and stopped looking for sales,” he says. Still, he insists there is a market.

“There will always be a need for life settlements when the situation arises,” he says.

Katz thinks the market will stabilize when potential buyers become more comfortable with the lengthier longevity projections.

“I’m really more positive than not,” he says

The Trade Mission will set a new standard for accuracy of information and a realistic presentation of the challenges and opportunities in the life settlement marketplace.

This is the best opportunity for reputable participants in LISA and ELSA to showcase the life settlement product to premier audiences of interested European investors with extensive opportunity for exchange of views and contact with those entities serious about the market and its long term development.

Member News

Vida Capital LLC, a financial services firm in Austin, TX, recently completed its purchase of a majority of the interest in life settlement provider and LISA member, Magna Life Settlements Inc. of Coral Gables, FL.
Vida Capital Acquires Majority Stake in Magna Life Settlements
Life Settlement Review, 01/20/2010

Other News

Wichita, Kansas-based, Lion Share Capital will provide “long time partner,” Environmental Services Professionals, Inc. (ESP) of California “with $120 million in Life Settlement contracts from its portfolio” to be used as collateral for ESP’s most significant debt offering to date.
Chairman and CEO of Environmental Service Professionals, Inc., Edward L. Torres, Announced the Completion of Negotiations With Lion Share Capital LLC to Provide Collateral for Capital Investment
CNNMoney.com, 01/20/2010

The hunt for the missing £103m continues as the Serious Fraud Office (SFO) teams with the Luxembourg financial regulator to search for Keydata investor’s missing money.  
Keydata: Fraud office steps up efforts to trace missing £103m
Citywire, 01/20/2010

New Jersey and Pennsylvania have both introduced new life settlement laws which would amend their existing laws regulating settlements in their respective states.
Life Settlement Bills Considered In N.J., Pa.
National Underwriter Life & Health Magazine, 01/22/2010

A misleading article from the Milwaukee Journal Sentinel discusses the purported fraud conducted by “two-time felon” and “persuasive salesman” Richard Incandela, involving “risky investments” known as “life settlements.”  The “creepy product” as described in this article should not be labeled as a “’risky’ life settlement” but categorized as a charitable life insurance scam.  We are preparing a response to the authors of this article.
Christian School Puts Financial Faith in Death
Milwaukee Journal Sentinel, 01/23/2010

The expansion of the US secondary market for life insurance into Europe has drawn increased attention as of late.  The European market has seen an increase in interest and money over the past couple of years, despite scrutiny of the asset class on both sides of the pond.
Life Settlements Make Their Way in the UK
Financial Times, 01/23/2010

School districts in Wisconsin “have been courted by investment firms to borrow money to buy into the life settlement market.”  Wisconsin is working on legislation that would prevent STOLI transactions and implement a five-year ban in hopes to detour such transactions.  We feel that both of the articles from the Milwaukee Journal Sentinel distort the nature of the settlement industry and are currently preparing a response.
Betting on Death Risky for a Nonprofit
Milwaukee Journal Sentinel, 01/24/2010

SAN DIEGO–(BUSINESS WIRE)–The tumult in the capital markets over the past 18 months has caused financial institutions and investors to evaluate risk and asset correlation in a new light.

In response to this and the growing interest in alternative investment options, like the life settlement market, Life Solutions International (LSI) is hosting the second annual Insurance-Linked Investments Awareness Month (ILIAM)® in February 2010.

The month-long series of insurance-linked investment educational events will kick off on Wednesday, Feb. 3 at 1:30 p.m. Eastern time with a web-based seminar titled “Life Settlement Investment Market: Yesterday’s Distress is Tomorrow’s Success.” The first event will cover distressed asset investments, a brief history of the market, the life expectancy elongation, the capital crisis, portfolio transactions, where the market is now and what the opportunities are moving forward. Subsequent events will cover life settlement securitization, portfolios, servicing and pension plan investing.

“Investors are discovering that life settlements are one of the few non-correlated asset classes with receivables issued by highly rated insurance carriers and potentially attractive returns,” said Larry Simon, president, LSI. “The obstacle has been a lack of resources and education about the life settlement industry, particularly, in the areas of portfolio construction and mitigation of longevity risk. Additionally, there has been a wave of negative press comparing the securitization of life settlements to lower quality credit securities. As a result, this year’s ILIAM® series carries added importance to ensure that current and potential institutional investors have quality resources to bridge their education gap.”

All events, including web-based training sessions, expert panels and live seminars are free of charge. Limited space is available and registration is required for each event, so participants must sign up at least 48 hours in advance.

“Many prominent financial institutions around the world continue to participate in this marketplace and deem insurance-linked assets to be a valuable addition to their overall portfolios,” said Simon. “We believe insurance-linked assets could extend their benefits to a variety of industries if they had access to more information on the asset class.”

The events are open to qualified participants from the financial services sector, including banks, investment banks, hedge funds, funds of funds, private equity, pensions, foundations, endowments, insurance/reinsurance carries, and family offices.

For a full schedule of ILIAM® events or to register, visit www.lifesolutionsint.com/ILIAM or contact Angie Robert at               858/576-8067         858/576-8067 or arobert@lifesolutionsint.com.

Life Solutions International, LLC. (“LSI”) and its affiliates develop and implement asset accumulation programs in the US life settlement industry for purchasers worldwide. This alternative asset offers the potential for: above market returns on receivables from highly rated issuers, portfolio diversification, alpha improvement and reduced volatility.

LSI and its affiliates work with clients with varying needs, including major institutions who structure custom managed life settlement purchase accounts. These portfolios can be tailored to meet the purchaser’s risk and return parameters as well as timelines for capital deployment. For more information, visit www.lifesolutionsint.com

More regulatory scrutiny, higher consumer awareness and a return of buyers to the market are likely developments for the life settlement business this year, according to industry experts.

Doug Head, executive director of Life Insurance Settlement Association, Orlando, Fla., thinks the industry did well in the face of adverse publicity last year and is in position to make its case to more consumers in 2010. “Given the challenges inflicted upon us in 2009 and the aggressive nature of some of our adversaries, we did well,” says Head. “The inadequacy and inaccuracy of some of the information in the public realm was astounding. I’m looking forward to getting more accurate information to the general public. We continue to look to educate consumers.” Head continues to expect to see some regulatory battles ahead for the industry, with leftover issues from last year, when Congress held hearings on life settlements and the Securities and Exchange Commission opened an internal inquiry into industry practices. Head says he expects a report on life settlements from the General Accounting Office this April will shed additional light on the industry. He is not sure whether that will be good or bad for the businesses. The report was ordered by the Senate Special Committee on Aging, headed by Sen. Herb Kohl (D., Wisc.). “Kohl has the capacity to pocket the study or reject it,” Head says of the report.

As for the industry, Head expects some movement toward acquiring and selling life policies with relatively smaller face values. “But you see strange initiatives in some states that could almost cut small policies out of the marketplace,” he says. He cites a Vermont law passed in 2009 that strictly limits the amount of compensation a broker could get from a life settlement, so that a $100,000 policy, say, would return a commission of just $400. “It’s pretty tough to see that working,” he says. If similar laws were passed in other states, the economics of low-face policies wouldn’t work, he says.

Rob Haynie, managing partner of Life Insurance Settlements Inc., Fort Lauderdale, Fla., also expects some investors will begin to look at policy face values that are comparatively small. “But this change will extend upward, too,” he says. He thinks larger face values will come into play as an increase in the number of buyers multiplies opportunities for sellers. Haynie believes there will be more money available to buy policies this year than last year. It’s not that existing investors will have more money to spend but that new funding sources will come into the marketplace, he says. “I don’t know if that is going to happen immediately, but by year-end, the market will certainly be in a better position than it is today,” he says. As for increased state regulation, Haynie thinks that all in all, this has been good for the industry. The main challenge ahead for the industry is to convince legislatures to impose the same disclosure obligations on carriers as they do on settlement brokers, he says. “We are going to see more states realizing that in a world of open disclosure, it works both ways,” he says. “If it’s incumbent on the life settlement broker to disclose the seller’s options, it should be incumbent on the carrier to disclose to policy owners that they could triple the amount they could get,” compared to surrendering their policies. Haynie notes that legislation last year in Maine, Washington and Oregon did mandate such disclosures and says he hopes to see similar legislation pass in other states in 2010. He believes that one reason the coming year could be good for the industry is that relatively weak brokers withdrew from the business in 2009. “I think everyone now in the business is going to stay in the business,” he says. “2009 shook out the nonessential people.”

Life settlements
At least three solid indicators promise a positive forecast for life settlements in 2010:

■Liquidity: In this still-challenging economy, consumers continue to seek liquidity solutions; the secondary market for life insurance can provide that through life and viatical settlements. At a time when businesses and individuals are more interested than ever in leveraging assets they already have, they are learning that life insurance is not the illiquid asset they previously imagined. Among other things, life settlements are conducted without regard to policyholder credit ratings, which adds appeal for some financially hamstrung clients.
■Consumer education: Consumers today have more knowledge than ever of life settlements, given an unprecedented amount of media attention surrounding the settlement industry in 2009. Agents can more easily discuss the secondary market for life insurance with clients thanks to more than a year of intense media attention surrounding life settlements. Although some of this attention was positive (the 20th anniversary of the mainstream settlement industry) and some of it was negative (concerns that Wall Street may be too quick to embrace securitization of settlements) the take-away message for agents is that their clients know more than ever before about this option.
■Balancing supply and demand: Even with more policies in the market than the secondary market for life settlements can currently absorb (a temporary liquidity setback as experienced by all the world’s markets), consumers still receive four to six times the policy’s cash value in most settlements. Individuals age 65 and over have a total of approximately $500 billion of life insurance in force, and one-quarter of that — perhaps $125 billion in face value — is ripe for life settlements. As of now, there are not enough funds in the market to absorb that demand; even so, Wall Street, international funds, and other institutional investor forces will continue to bring money into the secondary market for life insurance, and this will fuel a robust industry in 2010 and beyond.
All told, life settlements continue to be a very appropriate option for qualified clients who need them.

M. Bryan Freeman, founder and president, life settlement provider Habersham Funding LLC

The capital markets are showing signs of stabilization, but the effect of the recent financial crisis continues to have a restrictive effect on the availability of capital in the settlement marketplace. Purchasers learned that even assets that are not directly correlated with the financial markets can be affected by sharp economic downturns. As a result, financial institutions are focusing more on returns that are not directly tied to the traditional stock, bond, and real estate markets, and yet still have high credit quality. These are key characteristics of life settlements.

While we have experienced increased activity and capital funding for certain types of policies in the fourth quarter of 2009, we believe that the first quarter of 2010 will bring additional upticks to the market and rising interest in securitization of this asset class. Higher life expectancies and less variability in life expectancy underwriting guidelines — both of which occurred in late 2008 — have fostered greater confidence by allowing buyers to account for longevity risk more uniformly in asset evaluations. No additional major life expectancy underwriting changes are expected in the immediate future.

More regulatory attention is now being paid to the life settlement industry, and this will likely continue in the year to come. Many states have enacted regulations based upon two key industry model acts. We believe that many of these regulations are fair and balanced and regulate settlements while preserving consumer rights. A handful of states, however, have passed regulations that significantly curtail the consumers’ right to access this marketplace. It is widely expected that states will continue to enact fair and balanced regulations. In addition, the federal government began a series of hearings and research efforts to help them better understand the life settlement industry, particularly in regard to the securities aspects and the impact of securitization of settlements on the financial system. We expect this trend will also continue into 2010.

Larry Simon, president and CEO, Life Settlement Solutions Inc.

Running from November 8-10, LISA’s 15th Annual Fall Conference garnered an attendance in excess of three hundred. In an economy slow to recover, the success of such a crowd was a stark reminder that interest in life settlements among investors and consumers remains as vibrant as ever. “We’re extremely pleased with not only the size of this year’s turnout — given ongoing economic hardships — but the depth and diversity of our attendees this year exceeded all expectations,” remarked Doug Head, LISA Executive Director. “We’re seeing a significantly higher level of understanding of this industry among financial professionals. This was reflected in the quality of presentation and dialogue at this year’s fall meeting.”

Among the conference faculty was Georgia State Senator Ralph Hudgens. LISA presented Sen. Hudgens with their 2009 Consumer Freedom Award for his legislative accomplishments in protecting the long-established property rights of life insurance policy owners. In 2009, Georgia saw the passage of Senate Bill 61, a strong “consumer-first” legislative proposal authored by Sen. Hudgens, Chair of the Insurance & Labor Committee. “We’re tremendously grateful for the work Sen. Hudgens has done on behalf of seniors,” remarked Mr. Head. “We wish him all the best as he seeks to be Georgia’s next insurance commissioner.”

LISA’s Fall Conference corresponded with a major milestone for the life settlement industry. Conference attendees celebrated the 10th Anniversary of the life settlement industry. Additionally, LISAPAC, the bi-partisan federal political action committee of LISA, launched its 2010 campaign drive. LISAPAC Chairman Mark Goode explained: “Each year, LISAPAC works to advance consumer rights in the settlement arena. We actively support candidates for public office who share our view that the right of life insurance policy owners to sell their policies on a secondary market must be preserved and defended.”

The 15th Annual Fall Conference concludes in the wake of major federal interest in the secondary market. Recently, LISA has played an active role in several major federal congressional hearings and ongoing inquiries into the role of securitization of life settlements. As the U.S. economy is revived, the association sees the market playing a larger role in the financial decisions of many seniors and, by extension, in the policy decisions of Washington lawmakers.

To learn more about LISA, please visit: www.thevoiceoftheindustry.com/.

About LISA

Established in 1994, the Life Insurance Settlement Association is the oldest and largest trade organization in the industry. Its goal is to promote the development, integrity, and reputation of the life settlement industry, and to promote a competitive market for the people it serves. LISA now represents over 140 members with a wide variety of interests in the industry. For more about the association, visit www.thevoiceoftheindustry.com. Contact:

Doug Head
LISA Executive Director
407-894-3797
doug@lisassociation.org

A model developed by the National Conference of Insurance Legislators, Troy, N.Y., is the model of choice, in place in over 25 states, noted Michael Freedman, senior vice president-government affairs with Coventry, Fort Washington, Pa. But Freedman added, it is important to note that whether states adopted a NCOIL model or a model similar to one developed by the National Association of Insurance Commissioners, Kansas City, Mo., there are important similarities in both such as disclosure, licensing and privacy protections which create uniformities nationwide.

Stephanie Brensilver, on the regulatory execution team of Credit Suisse, New York, said that there are still differences that can make it difficult for providers and agents to negotiate differences between different states. In some states, for instance, both the individual and entity need to be licensed and in others, just the individual, she added. Small nuances like this increase the difficulty of doing business, Brensilver added.

However, Brensilver differentiated between the desire for more uniformity and taking a stand on federal versus state regulaton. Credit Suisse wants greater uniformity, she added.

From LISA’s point of view, the bills in legislatures that have been most problematic are those that are brought before state bodies late in session or in short, compressed sessions, according to Doug Head, LISA’s executive director. For instance, he said, in West Virginia the bill was adopted within 48 hours; in Nevada, within two weeks; in Oregon, within a month with very few hearings; and in Vermont, a bill was heard and then nothing happened until two days before the close of a session.

Ralph Hudgens, Georgia state senator (R-24th District,) spoke to the issue of what is helpful to legislators when they are considering a bill. He said that his door is open to either side of an issue and that if a lobbyist comes in and states his case, he then asks ‘who is opposed and why?’ so that he can solicit a different viewpoint. Lobbyists and legislative researchers provide legislators with valuable information that helps in the decision making process, he said.

That knowledge is increasingly critical as the industry changes, as detailed by panelists who described how foreign entrants as well as pension funds may become more common going forward. But entrance into the market is often a slow process as new participants get used to the life settlement industry. For example, Scott Willkomm, senior vice president-business development with Coventry, said that the Asian market is conservative whether on a retail or institutional level and although there is an awareness of this asset class, there is some reluctance to take risk.

A similar discussion threaded its way through a panel discussing on pension funds with general agreement that although it is a buyer’s market at the moment,

pension fund are concerned about reputational risk. Consequently, according to panelists, it is critical that the industry work to ensure transparency. What

these pension funds view as a positive, according to Jose Garcia, chief executive officer with Carlisle Management Co., Luxembourg, was the issuance of tax

rulings which removed ambiguity from life settlements as an investment class.

Look for more on this session and complete coverage in the December issue of Life Settlement Review.

JIM CONNOLLY

——————————————————————————–

Managing Editor
Life Settlement Review

Case Examples

• 65 year old male with significant health impairment
• $500,000 face
• $260,000 net to owner

• 82 year old male with a seven year life expectancy
• $2 million face
• $350,000 net to owner

• 82 year old female with normal life expectancy
• $10 million face
• Nearly $700,000 net to owner

• 78 year old male with 11 year life expectancy
• $1.5 million face
• Nearly $150,000 net to owner

In each case the submitting producer was able to make a generous commission while still securing good value for the client.

Settlements For Life has been brokering life insurance settlements since 2003. As one of the most experienced brokers in the business, SFL does business on a national scale and is licensed in most regulated states.

Settlements For Life’s reputation for honesty and integrity in dealing with both buyers and sellers is unmatched throughout the industry.

Call David Pryor today, to discuss how SFL can help you and your clients get the money you deserve. Ask about our Life Enhancement Program, and our buyers for premium financed contracts, Phoenix and Hartford contracts, and our exclusive institutional fund sources.

(901) 435-0427
dpryor@settlementsforlife.com

Orlando, FL

On November 8-10 in New York City, the Life Insurance Settlement Association’s (LISA) non-partisan federal political action committee, LISAPAC, will launch its 2010 campaign drive to preserve and protect the life settlement industry. As 2009 winds down, LISAPAC is aggressively gearing up for a new political year with tremendous possibilities as well as potential threats. In a matter of days, at the LISA 15th Annual Fall Life Settlement Conference, the PAC will remind life settlement professionals about its critical mission.

“On a federal level, 2009 will prove to be decisive year in the future of life settlements,” remarked Mark Goode, LISAPAC Chairman. “In the midst of substantial and unprecedented federal interest in this market and the emergence of Wall Street participation in life settlements, the work of the PAC has never been more urgent and its important service to our market is clear.” LISAPAC’s presence at the LISA 15th Annual Life Settlement Fall Conference comes in the wake of multiple significant developments coming out of Washington, D.C. In September, Congressman Paul E. Kanjorski (D – PA), Chairman of the U.S. House Sub-Committee on Capital Markets, Insurance, and Government Sponsored Enterprises, convened a hearing on life settlement securitization. In August, U.S. Securities and Exchange Commission (SEC) Chairman Mary L. Schapiro launched a special internal taskforce to review the subject of securitization in the settlement industry. The U.S. Governmental Accountability Office (U.S. GAO) is seeking a better understanding of life settlements as they develop a forthcoming report on the secondary market. Most recently, the North American Securities Administrators Association (NASAA) announced the formation of a task force to consider the issue of life settlement investment.

“The considerable action in Washington on this issue should serve as a wake-up call to all who seek to preserve the settlement option for consumers. Ours is a vital service to seniors that, despite exponential success in recent years, demands significant explaining to Washington legislators,” explained Doug Head, LISAPAC Assistant Treasurer and LISA Executive Director. “Our job is to ensure that policy makers get it. They are facing some critical questions with regards to federal treatment of settlements in the scope of larger insurance legislation. Consumer property rights must be preserved in a time of expanded regulation.”

During its inaugural fundraising campaign LISAPAC raised nearly $100,000 from more than 70 industry leaders. LISAPAC’s presence at LISA’s 15th Annual Fall Conference will serves as a major indication that it is driving for a substantial increase in participation by the life settlement community. “The stakes are simply too high and we must work together to achieve 100% industry participation for LISAPAC,” commented Mark Goode. “One cannot overstate the gravity of the challenges we face on not only the legislative front but also from a public relations perspective. By now, it must be clear to all that media outlets drive the public discourse and, by extension, the debate among policy makers. LISAPAC serves a vital role in clarifying and, where necessary, correcting the direction of this discourse. In this regard, LISAPAC is an important force for good in promoting public policy that protects the interest of senior insured consumers, as well as protecting our marketplace.”

To learn more about LISAPAC, please call the LISA office at 407-894-3797 and ask for the LISAPAC Administrator.

10TH ANNIVERSARY OF LIFE SETTLEMENT INDUSTRY

LISAPAC’s campaign comes at another significant moment in life settlement history – 2009 marks the 10th anniversary of the industry. At the 1999 September meeting of the National Association of Insurance Commissioners (NAIC) convened in Orlando, Florida, representatives from a settlement firm announced that they were actively purchasing policies from seniors who were not terminally ill. This was the first public acknowledgment of such transactions. Having evolved out of the viatical settlement industry, life settlements represented a quantum leap in the ability of an insurance policy owner to extract, while living, hitherto unrealized cash value. Since then, thousands have benefited from this unique financial opportunity.

About LISAPAC

LISAPAC, a qualified multi-candidate committee is the federal bipartisan political action committee of the Life Insurance Settlement Association. The purpose of LISAPAC is to use raised funds in support of United States Senate and House of Representatives candidates who endeavor to promote consumer rights which will lead toward a strong and competitive market for the life settlement industry by advancing the legislative and regulatory interests of the members of LISA. Any U.S. citizen or green card holder can contribute to LISAPAC. Contributions must be voluntary. Contributions are not tax deductible for federal income tax purposes. LISAPAC cannot and does not accept corporate contributions. LISAPAC is administered by its Board LISA’s Political Committee. LISAPAC’s Political Committee is comprised of LISA’s President, the Chairman of the Political / Legislative Committee and the LISA Executive Director. LISAPAC is fully compliant with all FEC and IRS Rules and Regulations.

About LISA

Established in 1994, the Life Insurance Settlement Association is the oldest and largest trade organization in the industry. Its goal is to promote the development, integrity, and reputation of the life settlement industry, and to promote a competitive market for the people it serves. LISA now represents over 140 members with a wide variety of interests in the industry. For more about the association, visit www.thevoiceoftheindustry.com.

Contact:

LISAPAC
Doug Head
LISAPAC Assistant Treasury
407-894-3797
doug@lisassociation.org

Contact

LISA Office
407-894-3797
info@lisassociation.org

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