Who are the Players?

Investor

An individual accredited investor, a financing entity or other business entity that provides capital to a life settlement provider for the purpose of purchasing one or more (typically referred to as a “portfolio”) life insurance policies as an investment. Also sometimes referred to as a “funder.”

Provider

A company whose primary business activity involves purchasing life insurance policies through viatical or life settlement transactions. Life settlement providers may purchase policies for their own account or on behalf of their funder clients. Sometimes also referred to as an “originator” when purchasing a portfolio of policies for a funder. Providers generally are required to be licensed by various state insurance commissions.

Life Expectancy Underwriter

An individual or company that reviews personal and medical information for the purpose of issuing mortality reports and related life expectancy estimates for use in life settlement transactions. Other terms used to describe these companies include medical underwriters and Qualified Consulting Physician (QCP).

Life Settlement Broker

A party who represents financial advisors, life insurance agents, insurance agencies and consumers with respect to the sale of life insurance policies in the secondary market. A life settlement broker is required to be licensed in many states and generally owes a fiduciary duty to the seller of a life insurance policy. Brokers do not represent life settlement providers.

Financial Advisors/Producers

Typically advisors to the insured/owner, such as their individual life agent, accountant or attorney who might, on behalf of the insured/owner contact a life settlement broker or provider.

The Insured

The person whose life is covered by the insurance policy and is the subject of the life settlement transaction. The owner is the party that possesses and controls all of the rights and privileges granted by a life insurance policy, including the right to assign, transfer, surrender, sell or otherwise dispose of the policy. The owner may be one or more individuals, a trust, corporation or other business entity and may or may not be the insured (and if not at inception, must have had an “insurable interest” in the insured at that time).