Michael Abraham

Newsday

By: Peter King

While your portfolio may have taken a beating, you might have one asset that’s worth more: your life-insurance policy. Unfortunately, those who may want to buy it from you are not betting on your good health.

Commentary by Michael Abraham:
Whether or not a buyer of a life settlement is betting on health is, in this writer’s view, unimportant to the seller who wants or needs the money that the investor is willing to pay.

http://www.newsday.com/business/retirement/tip-putting-life-insurance-policies-up-for-sale-1.1618380

Associated Press

By: Michael Gormely

A new New York law seeks to protect consumers by regulating “life settlements,” in which the elderly sell their life insurance for far more than the value upon cancellation to get cash, often to stave off hard times.

Commentary by Michael Abraham:
Protection is important but surely, as with most things, education is the more important aspect and both regulators and insurance carriers should get behind bodies such as LISA who are trying to provide this service.

http://www.google.com/hostednews/ap/article/ALeqM5iZNPnIJlGWBRHC9Q8NyorM0amMFgD9C7U7VG0

InvestmentNews

By: Darla Mercado

To discuss life settlements or to ignore life settlements — that’s the question insurance agents and registered reps who sell insurance policies are asking themselves in light of growing confusion over their responsibility to disclose the option of selling a policy that owners no longer want.

Commentary by Michael Abraham:
It seems to me that this should not even be a discussion point!  How can an adviser be seen to give complete advice if he does not include all options?  It is exactly the same for insurance companies who consistently omit to let lapsing/surrendering policyholders know of the option to sell their policy.

http://www.investmentnews.com/apps/pbcs.dll/article?AID=/20091122/REG/311229998

InvestmentNews

By: Darla Mercado

New York’s state Legislature has passed a bill that would to regulate life settlements, requiring brokers and intermediaries to get their insurance licenses.

http://www.investmentnews.com/apps/pbcs.dll/article?AID=/20091117/FREE/911179985/1029/INSURANCE

Financial Planning

By: Nora Colomer

Life settlement securitizations have picked up some renewed interest in recent weeks, and market players believe the sector is poised for a revival.

http://www.financial-planning.com/news/new-life-for-life-settlement-deals-2664532-1.html

Commentary by Michael Abraham:

Real securitization requires huge amounts of face values and policies – are there really so many policies of the right size available – or is it all just hype?

InvestmentNews

By: Darla Mercado

Though Finra and the SEC have spent some time examining the world of life settlements, representatives from these agencies said they still have a ways to go before fully defining the depth of their jurisdiction in that growing industry.

http://www.investmentnews.com/apps/pbcs.dll/article?AID=/20091111/FREE/911119976

Commenary by Michael Abraham:

While considered regulation of the market is to be welcomed it is clear that much of the US regulation, particularly that affected by individual states, is based upon a re-working of other previous agreements and statutes and there has been little or no clear detached and ‘green field’ thinking.  In this writer’s opinion it is this that has led to the high number of interested ‘professionals’ taking substantial amounts of commission from the transactions.  In fact by regulating introducers, agents, brokers and providers they have in fact legitimized these commissions.  They should really take a look at the simple transparent and competitive methodology used in the UK traded policy market.

InvestmentNews

By: Darla Mercado

A key state insurance figure has called upon the life settlements industry to keep Main Street policyholders in mind — or else.

http://www.investmentnews.com/apps/pbcs.dll/article?AID=/20091110/FREE/911109985/1029/INSURANCE

Commentary by Michael Abraham:

Yet again we have the issue of policies being manufactured (perhaps to fill the securitizations!) for the purpose of making an investment return rather than policies being bought for the purpose they were designed – to cover a life.  This can and will lead to abuses and in this writer’s opinion should be outlawed.

Insurance and Financial Advisor

By: Tony Ondrusek

California recently enacted legislation to more closely regulate the life settlement industry, attempting to keep the industry STOLI-free (stranger-owned life insurance), and recognizing life settlements as a viable financial tool.

http://ifawebnews.com/2009/11/09/when-done-right-life-settlements-are-worthwhile-despite-naifa-claims/

Commentary by Michael Abraham:

As per my comment on the ‘Life Settlements Industry Must Protect Seniors’ article by Darla Mercado, I fully agree with California’s stance on this matter.