The Life Settlement Institute Applauds U.S. Senate for Reviewing Emerging Industry

WASHINGTON--(Business Wire)--
The Life Settlement Institute (LSI), the leading organization representing
secondary market providers for life insurance, commends the United States Senate
Special Committee on Aging for its review of the emerging secondary market for
life insurance, also known as the life settlement market.

A life settlement is the sale of an unwanted or unneeded life insurance policy
to a third party for more than its cash surrender value, but less than its net
death benefit. As consumers become increasingly aware of the benefits of the
secondary market for life insurance, more and more Americans are receiving the
market value for their policies in life settlements.

LSI endorses the Committee`s interest in protecting seniors from secondary
market participants and others who may not have seniors` best interests in mind
or engage in abusive, dishonest or fraudulent activities. Toward this end, since
2002, when LSI was formed, LSI and its member companies have advocated for
strong regulation of the life settlement market, promoted transparency and best
practices within the industry, and worked with state regulators to elevate
standards.

LSI and its members have successfully advocated for the passage of every state
settlement law adopted since LSI`s formation, all of which are based on the
model laws of the National Association of Insurance Commissioners (NAIC) and the
National Conference of Insurance Legislators (NCOIL). Moreover, all of LSI`s
member companies support transparency in the execution of life settlements,
including full disclosure of broker commissions and industrywide best practices.

"We are encouraged that the Senate`s Special Committee on Aging has decided to
review the life settlement industry," said Brian Smith, President of LSI. "By
looking into the secondary life insurance market, the Committee and Chairman
Kohl are showing their concern for the protection of consumers from bad actors
in the sector who undermine the benefits that life settlements provide to
America`s seniors."

In an increasingly diversified market, life settlements can be a sound financial
option for many Americans who find themselves with unwanted or unneeded life
insurance policies. Consumers interested in life settlements should make sure to
speak to their lawyer, insurance broker or financial advisor prior to engaging
in a life settlement.

ABOUT LSI

The Life Settlement Institute is a not-for-profit trade association dedicated
to: increasing the knowledge and awareness on the part of financial planning
professionals and advisors of the life settlement industry; increasing the
awareness of life insurance policyholders of the option of obtaining more value
(where appropriate) for their policy than otherwise would be available from the
issuing life insurance carrier, promoting the use of institutional financing in
the life settlement industry; supporting laws and regulations that foster the
use of such institutional financing; and preventing fraudulent or dishonest life
settlement transactions. LSI has been the leading organization in promoting and
supporting strong regulation of the life settlement market and in promoting best
practices within the industry. LSI and its members have successfully advocated
for the passage of every state settlement law adopted since 2001, all of which
are based on the model laws of the National Conference of Insurance Legislators
(NCOIL) and the National Association of Insurance Commissioners (NAIC). Today,
31 states regulate life settlements to protect life insurance policy owners who
are considering a life settlement, and more states are currently considering and
adopting legislation. Each state life settlement law contains strong consumer
protections and anti-fraud measures, including required consumer disclosures,
privacy protection, and the requirement that life settlement providers and
others report suspected fraud to insurance regulators.

For additional information, please visit www.lifesettlementinstitute.org or
contact Joshua Smith at jsmith@gpgdc.com.

The Life Settlement Institute (LSI)
Joshua Smith, 202-741-5570
jsmith@gpgdc.com

Copyright Business Wire 2009