Will the life settlement market rebound in 2011? Only time will tell. But increased focus on regulatory and self-regulatory oversight can only be a good thing. Case in point is the recent release of “Life Settlement Provider Best Practices” by the Institutional Life Markets Association. The document provides minimum compliance and diligence procedures for life settlement providers.
ILMA’s release is “an important step toward standardizing life settlement origination practices,” says ILMA managing director Jack Kelly. “Providers following the same, transparent procedures and diligence will protect consumers and investors while fostering confidence in this viable investment option.”
ILMA’s best practices document focuses on providers certifying the intermediary (broker, agent, financial advisor or attorney), guidance to providers on transferred policies, whether policy premiums have been financed, anti-fraud plans including retention of a medical professional or underwriter capable of comparing policy applications to medical records for material discrepancies, privacy policies, and direction on state and federal laws and regulations compliance.