Close Close
Sign In
Newsletters
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
Podcast Center Video Center Webcasts Resource Center Events
About ThinkAdvisor Contact Us Advertise With Us Asset & Logo Licensing Sitemap Terms of Service Privacy Policy Copyright © 2024 ALM Global, LLC. All Rights Reserved.
ThinkAdvisor

Life Health > Life Insurance

Coventry First Sues Over Life Expectancy Projections

By Allison Bell

X
Your article was successfully shared with the contacts you provided.

NU Online News Service, May 12, 2004, 5:19 p.m. EDT – Coventry First L.L.C., Fort Washington, Pa., is accusing a life settlement underwriting firm of encouraging overly aggressive life settlement pricing.[@@]

Companies in the viatical settlement market buy life insurance policies from terminally ill insureds, and companies in the life settlement market buy life policies from older insureds.

Coventry, a company that has been active in the viatical and life settlement markets, has filed a complaint in the U.S. District Court in Philadelphia that accuses Examination Management Services Inc., Waco, Texas, of making unrealistic mortality projections.

Investors who buy life policies through the competitors that use the projections “will suffer significant losses,” according to Alan Buerger, Coventry’s chief executive.

“We would, of course, deny those claims,” says Anthony Falisi, Examination Management’s attorney.

Examination Management has been providing life expectancy evaluations for only a few years, and that service makes up less than 1% of its total business, Falisi says.

“Because EMSI has only been offering this service for a couple of years, there’s insufficient data regarding the number of actual deaths to assess the accuracy of EMSI’s evaluations,” Falisi says.

But Falisi adds that EMSI’s life expectancy evaluation standards are reviewed regularly by independent entities and that those standards are consistent with the standards used throughout the industry.

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.