The life settlement business is an unsettled territory in need of good regulations.[@@]
Nat Shapo, recently named as chief compliance officer for Coventry First L.L.C., Fort Washington, Pa., a leader in the life settlement market, says new regulations remain a top priority for the industry.
“Many jurisdictions either have no settlement law, or regulate viatical settlements but not life settlements, thus providing a haven for questionable practices,” Shapo says.
A life settlement involves the purchase of rights to life insurance policies from older insureds. A viatical settlement involves the purchase of life policies from insureds with terminal illnesses.
Shapo, 37, who served as Illinois director of insurance before going into private practice as a lawyer 2 years ago, says Coventry First is committed to working with regulators and other stakeholders to enact good rules.