The Life Settlements Report - May 3, 2007

Winning Model Act Up in the Air

The battle is heating up between the two groups developing competing model acts to regulate life settlements. But which one will prevail – the plan by insurance regulators or the one by state legislators – is anyone’s guess. The National Association of Insurance Commissioners (NAIC) model act revision is supported by the life insurance industry while the competing model being developed by the National Conference of Insurance Legislators (NCOIL) appears to be favored by the life settlement industry. Full Story

Even LISA’s Head Unsure About Alumni Program

To the elderly Idaho woman, it sounded too good to be true. She attended a seminar and heard about how to make money buying and selling her life insurance. The wealthy, 86-year-old woman was wary at first – her accountant advised against it and her son questioned why she needed insurance and premiums at her stage in life

A federal court in Massachusetts made no decision May 2 on whether to extend a freeze on Lydia Capital’s assets. The Boston hedge fund company and its two principals, Glen Manterfield and Evan Andersen, were charged with insurance fraud by the Securities and Exchange Commission. Full Story

Ritchie Seeks $700M, Claims RICO Violations

Ritchie Capital Management filed suit May 2 against Coventry First under the federal RICO Act, seeking $700 million in damages against the provider. The lawsuit, filed in U.S. District Court for the Southern District of New York, alleges fraud, breach of fiduciary duty and breach of contract, and seeks to recover damages to Ritchie caused by “Coventry’s First’s pervasive fraud in the secondary market for life insurance.”

A federal appeals court in Virginia has upheld a lower court decision that says viaticals are to be considered the business of insurance, a ruling that went against the Texas provider that brought the case. Full Story

• Mutual Credit Corp. Wins Court Victory Against Former Partner
• Preliminary Conference for Coventry First Set
• Donor Causes Flap at Florida Atlantic University
• Broker Getting Bigger Facility in Effort to Expand Business
• Life Expectancy Firm Claims 96% Accuracy
• Website and Webinars Announced for Life Settlement Awareness Month
• Ritchie Capital to Continue Managing Fund with Life Settlements
• New Bermuda Fund Created to Invest in Life Settlements
• Mark Ross &. Co. Names New Executive to Monitor Ethics in Life Insurance Industry
• Life Expectancy Company Gets Another New Client