Life Settlement - Compliance News

State insurance regulators Monday voted in favor of a proposal that would allow carriers to terminate an annuity living or death benefit if a client sold the contract over the secondary market.

New York’s state Legislature has passed a bill that would to regulate life settlements, requiring brokers and intermediaries to get their insurance licenses.

A recent article in Investment News warned companies of the dangers of not investing resources into their respective compliance departments. Failure to heed that warning could cost companies more in resulting fines than the cost of any immediate investments in the retention of and education for their compliance personnel.

The Financial Industry Regulatory Authority Inc. might issue guidance in coming weeks regarding fees firms can charge for life settlement transactions, a Finra executive said today in Boston at the agency’s annual meeting.

Life-Exchange, Inc. (OTCBB: LFXG) announced today an exclusive joint venture with MediSummary. MediSummary is a specialty medical underwriting firm with a focus on the life settlement and premium finance market. Founded in 2006 by Cristina Fossati and headquartered in Coral Gables, FL the firm counts more than 50 different financial institutions as clients. Beginning February 1, 2009 Ms. Fossati and her team will begin offering their services exclusively through Life-Exchange.

The federal Office of Thrift Supervision has given 2 insurers permission to buy federal savings banks and become federally regulated bank holding companies.

The National Association of Insurance Commissioners will hold a public hearing to discuss a proposal that would ease reserve requirements for life insurance companies.

KPMG was appointed receiver and manager of all of the property of New Life Capital Corp. and its related entities by the Superior Court of Justice this week.

The Kentucky House of Representatives has taken an important
step to protect life insurance consumers with a ban on stranger originated life insurance (STOLI) schemes,
according to the Life Insurance Settlement Association. HB 348, unanimously passed last week, protects
consumers by succinctly and directly prohibiting initiation of life insurance for wager purposes—without rolling
back a policy owner’s property right to gain or utilize the market value of a properly initiated policy as he sees
fit.

Legacy to Expand into Life Settlement Portfolio Trading

Legacy Benefits Corporation (New York), a recognized leader in the life settlement industry, announces a strategic partnership with Mofet Holdings, Ltd. to broaden Legacy’s role as principal in the origination and trade of life insurance settlements and portfolios. As part of this new alliance, Mofet will acquire for cash a 50 percent interest in Legacy Benefits, LLC.