Keydata Lifemark
Keydata Lifemark clients wait for restructure plan
Thousands of Keydata clients with life settlement products invested with Lifemark face a further wait to discover if they will recover their money as the company’s directors continue to work on a restructuring plan.
Lifemark announced on March 2 that a number of bonds underpinning several retail investment products provided and administered by Keydata had defaulted. As a result, 23,000 investors with £349m in these products will not receive the income payments due to them.
The bonds invest in life policies which require continuing premium payments. Lifemark believes is in the best interests of bondholders to use the remaining cash available to pay insurance premiums rather than making interest payments under the bonds, in order to preserve the value of the Lifemark portfolio.
The problem centres on mortality claims which have not occurred in line with expectations and therefore Lifemark’s advisers were made aware of the need for improved cashflow or amendments to the original aims of the bond.
Provisional administrator KPMG Advisory was appointed on November 20. Luxemburg regulator, the Commission de Surveillance du Secteur Financier is still considering a restructure proposal submitted by Lifemark on January 31.
Read complete article:
Money Marketing Keydata Restructure Plan
Posted in: Life Settlement.
Wisconsin Life Settlement Bill
Senate Bill 513 is aimed at helping prevent Life Settlement Fraud in Wisconsin.
Currently the industry is unregulated in Wisconsin, which opens the door for fraud and abusive sales practices. Not to say that all life settlements are fraudulent – they certainly are not. AARP members fall into the age category where abuse typically occurs, which is why AARP is supporting this bill.
This bill will require full disclosure from life settlement providers, as well providing a licensing regime with continuing education requirements for brokers and consequences for defrauding consumers.
Full bill can be reviewed at:
www.legis.state.wi.us/2009/data/SB-513.pdf
Front paragraph:
Under current law, the owner of a life insurance policy that insures a person who has a catastrophic or life?threatening illness or condition, including AIDS or HIV infection, may sell the policy for an amount that is less than the expected death benefit under the policy in a transaction known as a viatical settlement. The person that makes the payment under the viatical settlement is known as a viatical settlement provider (provider) and must be licensed by the commissioner of insurance (commissioner). A person who, for a fee, offers or attempts to negotiate a viatical settlement between the owner of a life insurance policy and one or more providers is known as a viatical settlement broker (broker) and must be licensed by the commissioner. The commissioner may revoke, suspend, or refuse to renew a provider’s or broker’s license if the licensee misrepresented information in the application; engaged in fraudulent or dishonest practices or is shown to be untrustworthy or incompetent to act as a provider or broker; has been convicted of a misdemeanor or felony involving fraud, deceit, or misrepresentation; violated Wisconsin law regarding viatical settlements; or if licensed as a provider, failed to meet the minimum settlement payment requirements or demonstrated a pattern of making unreasonable payments to policy owners. Every provider or broker must maintain records for all viatical settlements and make those records available to the commissioner for inspection.
More info:
Life Settlement License
Wisconsin Life Settlement
Wisconsin Life Settlements
Posted in: Life Settlement.
