Life Settlement News

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

The Life Insurance Settlement Association (LISA) has announced that the European Life Settlement Association (ELSA) has been named as an Honorary Member of the association, joining fellow European association BVZL as the second entity to receive the exclusive distinction.  Speaking to the appointment, LISA Executive Director Doug Head explained, “this move further strengthens our relationship with ELSA.  As the settlement market continues to grow and more capital flows from Europe, this relationship will be invaluable to both American and European interests.”

Four-day Event Draws Cross-continental Interests in Secondary Market

As interest in the life settlement industry climbs, two major trade groups unveil plans to host an international trade mission in Europe. In 2010, the Life Insurance Settlement Association (LISA) and the European Life Settlement Association (ELSA) will convene the first-ever trade mission for life settlement professionals. The 2010 Life Settlement Trade Mission is scheduled to run from February 23rd to the 26th. The four-day mission opens in London with an overnight stop in Luxembourg and concludes in Zurich. Despite the lingering effects of a global economic crisis, the life settlement industry is experiencing renewed interest among financial professionals and lawmakers. A Life Settlement is the sale of an existing life insurance policy to a third party for more than its cash surrender value but less than its net death benefit. The market is commonly understood to be less correlated to the fluctuations of financial markets and therefore, highly attractive in difficult economic times.

The Life Insurance Settlement Association announced the passage of a new law in New York that establishes comprehensive regulation of Life Settlements in that state. The new law introduced at the request of the New York State Insurance Department by Senator Neil Breslin (S66009) and Assemblyman Joseph Morelle (A40009), is based on the National Conference of Insurance Legislators (NCOIL) Life Settlement Model Act.

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

The life settlement market is now ten years old and the news is out! In recent months, the secondary market for life insurance has been the topic of articles and programs such as The New York Times, The Wall Street Journal, and ABC Nightly News among others. With this heightened awareness, consumers are reevaluating their financial choices and investors are taking a closer look at an increasingly attractive asset class.

On Columbus Day, 2009, California seniors were presented with the fine gift of a welcome new law regulating life settlements, Senate Bill 98. The Governor’s signature on this important legislation authored by Senate Insurance Committee Chair Ron S. Calderon (D - District 30) completes extensive work by both chambers of the legislature. The bill, which takes effect on July 1, 2010, regulates the life settlement industry in California, which has seen marked growth in the past decade. A Life Settlement is the sale of an existing life insurance policy to a third party for more than its cash surrender value but less than its net death benefit.

On November 8-10, life settlement professionals from all walks of life will converge on New York City for the Life Insurance Settlement Association’s (LISA) 15th Annual Fall Life Settlement Conference. As 2009 winds down and the US economy shows signs of leveling, LISA proudly brings together sophisticated investors, institutional funders and other life settlement professionals for an intimate three day meeting. The LISA Fall Conference comes in the midst of a significant show of interest by the federal government and the general public. With hearings on Capitol Hill, increased activity on Wall Street and a surge in mainstream media, the life settlement industry is poised to make major gains in investment influx and public awareness.

Yesterday, World News Tonight (ABC) considered Life Settlements. Producers of the program found a physician consumer, Dr. Eddy Powell, who had happily sold his life insurance policy for far more than the value which the life insurer would have offered him at the time. Dr. Powell sold the policy for a value which required the buyer to pay the premiums for the rest of Dr. Powell’s (presumably long) life. In the ABC piece, Dr. Powell expressed regret for having sold the policy because, though the sale afforded him the ability to pay off his debts, he was no longer the owner of the policy. According to some experts, Dr. Powell appeared to have forgotten that, before considering the life settlement option, he faced two unsavory choices: sell his policy to the insurer for pennies on the dollar or allow it to lapse for a complete loss. The Life Insurance Settlement Association (LISA) encourages people who can hang onto their policies to do so, but for those who would otherwise lapse or surrender their policies, the settlement option should be considered wherever possible. The public needs to know that they have choices and that a life settlement is one of them.

Yesterday on Capitol Hill, Russel Dorsett, President of the Life Insurance Settlement Association (LISA) testified before Congress on the benefits of life settlements to American consumers. In testimony to the House Subcommittee on Capital Markets, Insurance and Government-Sponsored Enterprises, Mr. Dorsett reported that American consumers have benefited greatly from the life settlement market and have received nearly $10 billion over the past decade, “making it possible for them to afford retirement, medical care, or simply to enjoy the lifestyle they have earned,” said Dorsett, continuing: “The average settlement pays policy owners 4 to 6 times the policy’s cash value.”