Life Insurance Settlement Spitzer Lawsuit
Mr. Spitzer’s suit contends that Coventry violated New York’s antitrust statutes and induced brokers to commit fraud.
The larger goal of Mr. Spitzer’s inquiry, investigators said, is exposing widespread problems within the life-settlement business.
“Some of these practices are typical across the entire industry,” said David Brown, the chief investigator on the case. “There’s nothing inherently wrong with this market, but if you are going to get into this business, you have to be fair and transparent.”
Actions against other life-settlement brokers and investors are expected.
Some industry experts said Mr. Spitzer’s lawsuit might actually benefit the industry.
“In the short run I think it will actually highlight the potential for cashing in on unwanted life insurance policies for both policy holders and investors,” said Elliott M. Kroll, a New York lawyer who specializes in working with life-settlement investors.
But some life-settlement investors said they were worried.
“If brokers aren’t acting in their clients’ interests in representing them to buyers like Coventry, that’s a real problem,” said Doug Head, executive director of the industry’s trade group, the Life Insurance Settlement Association. “This has been a controversial business since it was created. We need state regulations to make sure the public perception of our business isn’t damaged even more.”
From:
http://www.nytimes.com/2006/10/27/business/27life.html
More info:
http://www.lifesettlementpro.com/news/spitzer-accuses-philadelphia-life-settlement-firm-of-fraud/
http://www.lifesettlementpro.com/news/
More info about the Life Insurance Settlement Association
http://settlement-life-insurance.blogspot.com/2006/03/life-insurance-settlement-association.html
http://www.lisassociation.org/
The larger goal of Mr. Spitzer’s inquiry, investigators said, is exposing widespread problems within the life-settlement business.
“Some of these practices are typical across the entire industry,” said David Brown, the chief investigator on the case. “There’s nothing inherently wrong with this market, but if you are going to get into this business, you have to be fair and transparent.”
Actions against other life-settlement brokers and investors are expected.
Some industry experts said Mr. Spitzer’s lawsuit might actually benefit the industry.
“In the short run I think it will actually highlight the potential for cashing in on unwanted life insurance policies for both policy holders and investors,” said Elliott M. Kroll, a New York lawyer who specializes in working with life-settlement investors.
But some life-settlement investors said they were worried.
“If brokers aren’t acting in their clients’ interests in representing them to buyers like Coventry, that’s a real problem,” said Doug Head, executive director of the industry’s trade group, the Life Insurance Settlement Association. “This has been a controversial business since it was created. We need state regulations to make sure the public perception of our business isn’t damaged even more.”
From:
http://www.nytimes.com/2006/10/27/business/27life.html
More info:
http://www.lifesettlementpro.com/news/spitzer-accuses-philadelphia-life-settlement-firm-of-fraud/
http://www.lifesettlementpro.com/news/
More info about the Life Insurance Settlement Association
http://settlement-life-insurance.blogspot.com/2006/03/life-insurance-settlement-association.html
http://www.lisassociation.org/
posted by Life Settlement Pro at 12:14 PM
