This is a very interesting report released from the GAO…

The report notes that there is no comprehensive data for life settlements, but estimates that the market “grew rapidly from 1998 until the recent financial crisis.”

After increasing from 2006 to 2008, the number of policies settled declined in 2009, the report found. In 2009, over 2,600 policies were settled with a total face value of $7.01 billion, down from 4,505 in 2008. Policy owners were paid a total of $890 billion and brokers made $90 million in commissions from the sale of life settlements, in 2009. In 2008, the total value of policies settled was nearly $13 billion. Policy owners were paid more than $2 billion and brokers’ commissions were $280 million.

Life settlements are regulated by state insurance laws, which oversee the “front-end transaction,” or the sale of a policy by its owner to a provider; and by state and federal securities laws which regulate the “back-end transaction,” or the sale of the policy to an investor from the provider.

The life settlement market is organized largely as an informal network of specialized intermediaries that facilitate the sale of existing life insurance policies by their owners to third-party investors. Policy owners may sell their policies directly to investors in some cases, but owners and investors commonly use intermediaries to assist them with their life settlement transactions. Life settlement brokers represent policy owners for a fee or commission and may solicit bids for policies from multiple life settlement providers with the goal of obtaining the best price. Life settlement providers buy life insurance policies on behalf of investors for a fee or commission or for their own account. The number of brokers and providers varies widely from state to state

Read Full Report

That is right, we acquired the perfect domain for a Life Settlement Provider, Funding Group, or Funder. The domain is:

LifeSettlementFunder.com

We are looking to sell this domain as the previous client is no longer in the industry. The domain has been established since 2007, is on the first page of Google, and can be a quick way to immediatly add credibility to your life settlement business.

The first $395.00 request we get takes it. Simply email sales@dreamteamfinancial.com or call 1-888-249-0399. This won’t last.

Princeton, N.J.-based HMH Consulting reviewed 14,528 of Midwest’s estimates from 2004 to 2009, the draft report says. There were 1,395 observed deaths compared to 3,319 actuarially expected deaths, it said.

The audit of Hamilton, Ohio-based Midwest, written by actuarial firm HMH Consulting, was submitted as evidence by the Texas State Security Board’s enforcement division in an administrative hearing June 2 in the case of AGAP Life Offerings. Plano, Texas-based AGAP is accused by Texas regulators of selling unregistered securities, failing to register as a securities dealer, and misleading investors. The enforcement division provided a copy of Midwest Medical’s audit to The Life Settlements Wire.

Midwest’s life expectancy estimates have been criticized as being misleading and inaccurate by state and federal regulators in accusations against life settlement investment companies that have used them. Although the Texas State Securities Board did not mention Midwest in the AGAP order, the Texas Department of Insurance has issued an emergency cease-and-desist order against Midwest in relation to another life settlement investment firm, Retirement Value.

Source: Life Settlements Wire – Read Full Article

Here is a sample of a Midwest Life Expectancy Certificate…