The Life Settlements Report - April 19, 2007

Attempt to Impose Five-Year STOLI Ban at Heart of Controversy

An insurance regulator is charging that the country’s top life settlement provider is trying to scuttle efforts to strengthen industry regulations. “Coventry is fiercely lobbying NCOIL (National Conference of Insurance Legislators) to do a competing model to play one organization against the other so nothing happens,” said North Dakota Insurance Commissioner Jim Poolman. Full Story

Other States Consider New Legislation

Not surprisingly the first state out the gate to approve revisions to the viatical/life settlements law was North Dakota, home of Insurance Commissioner Jim Poolman who has been leading the charge to amend the national model act. Poolman proudly proclaims that despite “an enormous amount of money spent in North Dakota to kill the bill,” opponents only managed to get 18 no votes out of 151 cast in both houses of the legislature. Full Story

Former Partner of Firm Alleges Gouging

An Orange County Superior Court judge will decide later this month whether to issue a preliminary injunction in a case pitting former partners at a life insurance premium finance company against each other, one of whom accuses the other of gouging seniors with high interest rates. Full Story

Brothers Also Face SEC Charges

Two Florida brothers who operated a viatical and life settlements firm will be sentenced next month on multiple counts of conspiracy and fraud. Clarence Keith LaMonda, Jesse LaMonda, and their business attorney, John Maynard, were convicted March 6 by a federal jury in Florida in connection with a $107-million scheme to defraud insurance companies and investors. Full Story

• Life Partners Wins $550,000 Arbitration Award
• Peachtree to Service German Fund, Obtains $500M Credit Facility
• New Institutional Fund Trade Group Forms
• New Life Settlement Broker Reports Growth
• Life Expectancy Firm Gets New Customer
• Legacy Benefits Expands Staff, Names COO