Larry King Rooked In Life Insurance Scam
November 2, 2007 by Administrator

NOVEMBER 2–Larry King claims that an unscrupulous insurance brokerage swindled him in connection with his sale of $15 million in personal life insurance policies. In a lawsuit filed in U.S. District Court In Los Angeles, the 73-year-old television star alleges that he was targeted in a 2004 scheme hatched by the Maryland-based Meltzer Group.

In his October 22 complaint, a copy of which you’ll find below, King charges that the insurance company convinced him to engage in a series of “highly complex life insurance transactions” that resulted in the CNN host’s purchase and flipping of insurance policies with an aggregate value of $15 million. In one instance cited in the lawsuit, King purchased a $10 million policy and, at Meltzer’s direction, immediately sold it for a $550,000 profit. King also sold his interest in an older $5 million policy for $850,000.Larry King Life Settlement Insurance Scam

The newsman alleges that Meltzer, driven by “greed and avarice,” steered him into deals that were against his financial interests, and that the insurance broker never considered his financial condition, health, and the “likelihood of his future uninsurability.” To his detriment, King claims, the deals disproportionately benefited Meltzer through large commission, bonus, and override payments.

The two multimillion-dollar policies on King’s life are now held by third-party firms. One of those companies, Coventry Insurance, is being sued by New York State for bid-rigging and fraud in connection with its leading role in the growing “life settlement” industry. Coventry specializes in the purchase of life insurance policies owned by the aged and ill, with the firm aiming to profit when the elderly seller dies (which is likely what they had in mind when purchasing the $5 million King policy).

King’s lawsuit, which does not specify monetary damages, charges Meltzer and its principal, Alan Meltzer, with breach of fiduciary duty. (14 pages)

Source: The Smoking Gun

If you would be interested in a Life Settlement call 1-888-973-8377 for an immediate evaluation.

FAU fundraisers consider life insurance policies for donors
October 30, 2007 by Administrator

FAU fundraisers could follow Oklahoma State University’s lead in buying life insurance policies on donors.

BOCA RATON – Florida Atlantic University’s foundation will explore an innovative fundraising plan in which life insurance policies are taken out on donors who make the school the beneficiary when they die.

Foundation Chairman Les Corley said his board will look into the life insurance program, which was introduced as a fundraising tool by Oklahoma State University in March, as it revamps its gift policies for the first time in at least eight years.

It’s not unusual for donors to name alma maters as life insurance beneficiaries, but Oklahoma State’s plan is believed to be the first where the school actually purchases the life insurance and pays the premium until the donor dies.

Oklahoma State initiated the plan with the purchase of $10 million policies on 28 donors age 65 to 80.

Since then, universities throughout the country have pursued similar deals, which rely on the donor dying before the school has paid too much in premiums.

”Seventy-five foundations are looking at it right now. We would be remiss not to look at it,” Corley said.

Barry Kaye, a multimillion dollar FAU donor, life insurance salesman and member of the FAU Foundation board, said in April he would personally be responsible for raising $100 million if the school agreed to use an insurance plan he developed.

But FAU spokesman Kristine McGrath said Monday that FAU President Frank Brogan has had no discussions with Kaye about the plan. Kaye is a leader in the life settlement industry, where third-party investors can buy the life insurance policies of elderly people and cash in when the person dies.

Oklahoma State’s plan is considered less controversial because the university has an ”insurable interest” in the person they are buying the plan for, such as a donor or alumni.

Several schools and nonprofits are working with Atlanta-based Highland Capital Brokerage, on plans similar to Oklahoma State’s.

J. Kavanaugh Tucker, a vice president with the firm, said he warns schools there is risk associated with the plan because donors may live longer than expected, leaving the school paying a premium for many years.

”Schools take out loans to buy a death benefit and if the person lives too long, the loan balance can be more than the death benefit,” Tucker said.

The FAU Foundation, which raised $42.5 million in cash, pledges, and state matching grants last year, is gearing up for a capital campaign.

It formed a new Fund-raising Policy Committee to revise foundation gift rules and address areas such as gifts of tangible personal property, life insurance and intellectual property.

The committee will also consider FAU’s policy of naming buildings or other campus facilities after donors. Lawmakers gave schools more leniency in that area earlier this year.

”We have operated on a very antiquated policy,” said Ken Jessell, FAU vice president for finances, during a board of trustees meeting last week. “This is the most important policy adjustment in the past several years for the foundation.”

Source: Miami Herald

Life Settlement Broker to Donate to Victims of California Wildfires
October 25, 2007 by Administrator

Trinity Financial Services, LLC is to donate $1,500.00 immediately and $1,000 dollars per closed Life Settlement transaction for the balance of 2007 to the American Red Cross to assist in the California Wildfire Relief Effort.

Altamonte Springs, FL, October 25, 2007 – Trinity Financial Services, LLC, a full service Life Settlement Brokerage firm announces a new philanthropy program. Effective immediately and throughout the 4th quarter, a donation of $1,000.00 will be made to the American Red Cross www.redcross.org upon completion of all of Life Settlement cases.

In an effort to participate in the California Wildfire Relief Fund, Trinity Financial Services, management stated “Our thoughts are with everyone who has been affected by this disaster, particularly those who have lost their homes, as well as all of the individuals who have been displaced.”

Trinity Financial Services will also urge their providers and network of financial professionals to assist in the recovery effort, by making donations of time or money whenever possible.California Wild Fire Donation

About Trinity Financial Services, LLC

Trinity Financial Services has been assisting Financial Advisors, Insurance Professionals and their Senior Clients to sell existing Life Insurance Policies. They have also been instrumental in the education, growth and development of the Life Settlement Industry. For additional information on this program or on Life Settlements visit www.trinityfinancialllc.com or call 866-870-8746

Utah Life Settlement Regulation
October 23, 2007 by Administrator

Utah Regulators Weigh Five-Year Waiting Period for Settlements

Utah insurance regulators met last week with representatives of the life settlement and life insurance industries to discuss proposed revisions to the state’s viatical law. Utah officials have not yet decided whether they’ll support a five-year waiting period before new policies can be settled.

Not surprisingly, the proposed waiting period was the most controversial item discussed at the Oct. 17 meeting. The waiting period is supported by the National Association of Insurance Commissioners (NAIC) as a means to thwart stranger-originated life insurance (STOLI) policies. These are policies taken out by people who intend from the start to sell them, primarily to benefit investors who don’t have any relationship with the insured.

“There were a lot of hard feelings between the two industries and it was apparent it will probably remain that way for years to come,” said Brad Tibbitts, director of the life and property casualty divisions for the Utah Insurance Department.

Those attending included Michael Freedman, senior vice president of government affairs for Coventry First, a Fort Washington, Pa., provider; Doug Head, executive director of the Life Insurance Settlement Association; Michael Lovendusky, vice president and associate general counsel for the American Council of Life Insurers; Michael Sonntag, Utah lobbyist for the National Association of Insurance and Financial Advisors; and Brent Scott of Equitable Life and Casualty Insurance in Utah.

Tibbitts said his staff plans to meet in another week or so about the five-year waiting period.

“It’s one of those issues that if it’s going to drag our bill down to the point where they [legislators] throw it out, we’re not going to make a big issue of the five-year thing,” Tibbitts said.

An apparent STOLI scheme prompted about 50 calls to the Utah Insurance Department
earlier this year from Utah residents about offers of free insurance, Tibbitts said.

“We had a rush of phone calls in the spring and summer months on stranger-owned life
insurance,” Tibbitts said. “Some were pretty bad. ‘You sign up for this and we’ll give you $100,000.’ In essence you loan us your name and we’ll give you all this money.”

The state believes several producers were involved in the situation and their names were sent to the department’s market conduct section for review, Tibbitts said.

Other changes to Utah’s viatical law proposed by the state’s insurance department include an expansion of Utah’s rescission period from 15 to 30 days after the insured receives his or her proceeds, and a new financial responsibility requirement for providers, according to Betsy Jerome, senior life analyst for the insurance department. The department also intends to establish a new rule requiring providers to put up a $250,000 surety bond. They’re currently required to put up only a $50,000 bond.

Jerome said the department wants to ensure that death benefits go to the insured person’s beneficiary in cases where the rescission periods on policies are still in effect when the insured person dies. In one family trust case in the state, it took four to five months for a beneficiary to receive death benefits, after the insured died during the rescission period, Jerome said.

Source: Life Settlements WireÂ

Life Settlement Investors Webinar
October 20, 2007 by Administrator

Life Settlement Solutions, a San Diego provider, is offering a free webinar for investors interested in learning more about the life settlement market. The session, “Navigating the Maze of Life Settlements Investment Programs,” will be held at 10:30 a.m. Pacific Standard Time Nov. 8. It will feature Life Settlement Solutions chief executive Larry Simon; Brian Casey, a partner with the law firm of Locke Lord, Bissell & Liddell; and a representative from Ocean Star, a hedge fund.

Source: Industry NewsÂ

To discuss a potential life settlement or to offer your client life settlement options, call 1-888-973-8377.

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