The Life Settlements Report - July 3, 2008

Largest Markets May Remain Unregulated

Bills addressing life settlements stalled in the California and New York legislatures, making it more likely that the two largest markets will remain unregulated at least into 2009.

Industry and legislative representatives say there is still a possibility that the proposals could be revived and adopted this year.

The upcoming issuance of a $30 million life settlements note could mark the dawn of a new day for the securitization of life settlements.

Lifetrade Capital Ltd., of Curacao, Netherlands Antilles, plans to market the capital guaranteed notes to institutions and high net worth individuals outside the U.S. The three-year notes carry a 7% yield. The issue and maturity dates have not been determined.

AXA Equitable Life Insurance Co. filed a lawsuit in federal court in Florida accusing several brokers, insureds, and their trustees of obtaining $73 million in fraudulent stranger-originated life insurance (STOLI) policies.

• Rhode Island's Governor Receives Settlements Bill
• Life Settlement Insights Will Sell Mutual Benefits Policies
• FINRA Issues Warning about Life Settlements
• AllFinancial-Babcock Joint Venture Gets $135M Credit Facility
• Former Kentucky Regulator McPeak Joins Nashville Law Firm
• National Financial Names New Executive, Promotes Two
• PolicyOptions Licensed in N.J., Georgia, Kentucky
• Provider Habersham Gets New Mexico License