InSetCo P.L.C., a life settlement firm, has agreed to license use of paper document conversion technology from Dematco Inc.

Dematco, Encino, Calif., sells systems that can convert paper insurance instruments into electronic form, giving users the ability to trade previously untraded or illiquid paper instruments through electronic exchanges.

InSetCo, London, has agreed to pay Dematco 5% of any income it earns from life settlement-related transactions using Dematco technology.

In addition, the firm will pay Dematco 50% of net profits before taxation arising from the use of the Dematco products, less license fees and some overhead costs.