A Texas life settlement company has reached a $170,000 settlement with Virginia regulators over charges it violated that state’s securities law.
Life Partners Inc., Waco, Texas, agreed to offer to release Virginia investors from life insurance settlement contracts they had bought from the firm from Jan. 1, 2004 to Dec. 31, 2009, according to an order filed by Virginia’s State Corporation Commission.
Life Partners also agreed to pay a $150,000 fine to the state and $20,000 to the commission to cover costs of its investigation.
The commission charged that life settlements Life Partners had sold in the state were unregistered securities.
Under the agreement, the firm also consented that it would disclose information to future prospective investors about the risks of the investment, including average time for the investment to bear fruit, the requirement to pay life insurance premiums on purchased policies beyond the amount set aside for that purpose at the time the contracts were purchased, and the average amount of additional premiums investors have paid in the past.
Life Partners did not admit any misconduct in the case. As of press time, the company had not returned calls seeking comment.