Investors Notes - Addressing the Medicaid Long-Term Care Funding Crisis

Are Life Settlements the Answer?

With the increasing number of older
Americans requiring long-term care, the
pressure on the Medicaid system, which is
the primary payor for long-term care, is also
growing. Medicaid and state budgets have
been hit hard by both reduced tax revenues
as a result of the economic crisis and
growing Medicaid enrollment for an aging
population. The aggregate Medicaid
shortfall across 46 states for fiscal year 2011
was $121 billion and is growing rapidly.
Long-term care costs can run $20,000 per
month or more.

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ILMA Changes Name to Reflect Growing Tertiary Market

Trade Association now Institutional Longevity Markets Association

WASHINGTON, D.C. – The Institutional Life Markets Association is now the Institutional Longevity Markets Association (ILMA). The ILMA board voted at a recent meeting to change the organization’s name to reflect its enhanced focus on the spectrum of transactions conducted in the longevity market, including secondary and tertiary trading in life settlements, synthetic settlements and other derivative transactions and transfers of longevity risk to the capital markets.

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ILMA Amicus Brief on Barnes Case

In Hartford Life & Annuity Ins. Co. v. Doris Barnes Family 2008 Irrevocable Trust, et al., the United States District Court for the Central District of California granted summary judgment on behalf of the Doris Barnes Family 2008 Irrevocable Trust and against Hartford Life and Annuity Insurance Company on all of Hartford’s claims, including a claim that the policy at issue was void for lack of insurable interest and claims for fraud, fraudulent inducement, negligent misrepresentation, and conspiracy.

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ILMA Membership Reaches 18 Companies

Trade Association now includes 7 Charter Members and 11 Allied Members

WASHINGTON, D.C. – The Institutional Longevity Markets Association (ILMA) reached 18 member companies today with the addition of Corry Capital Advisors (CCA) as a Transitional Allied Member and Lewis & Ellis, Inc. (L&E) as an Allied Member in the not-for-profit trade association.

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Limits on Playing the STOLI Card: A Carrier’s Duty to Investigate Fraud

Crafted as a legislative compromise between two competing interests, the contestability
period for life insurance policies provides a two year window after issuance of a policy, during
which a carrier may continue its due diligence review of an insured and matters relating to
policy origination.

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ILMA Welcomes Wilmington Trust as Allied Member

Becomes Tenth Allied Member to Growing Trade Association

WASHINGTON, D.C. – The Institutional Longevity Markets Association (ILMA) is pleased to welcome Wilmington Trust to the not-for-profit trade association as an Allied Member.

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ILMA Amicus Brief on Cabal Case

A husband purchased a life insurance policy through a trust. The husband designated his wife as the beneficiary of the trust, making her the ultimate beneficiary of the policy. Three months after the policy was issued, the wife sold
her interest in the trust to a third party.

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Insurable Interest after Price Dawe, Schlanger and Brasner

Recent decisions from courts in Florida and
Delaware have garnered significant attention and
refocused the life settlement industry on the issue
of insurable interest and policy origination practices.

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ILMA Continues to Expand Membership

Board Approves New Charter Member and Allied Member

WASHINGTON, D.C. – The Institutional Longevity Markets Association (ILMA) announces the expansion of their membership with the Board of Directors voting recently to accept Fortress Investment Group and Examination Management Services, Inc. (EMSI) to the not-for-profit trade association.

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Trends in Cost of Insurance

A life settlement is based on one fundamental item, a life insurance contract. Absent fraud, contractual limitations or carrier default, the certainty that the net death benefit will be paid out is not a matter of if, but when. Given a large and diversified pool of life settlements, an investor should be able to create a relatively predictable and low volatility return.

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ILMA Releases Investors Note on Courth of Appeals Ruling

Teren Case Ruling May Have Implications for Many Pending Cases across Country

WASHINGTON, D.C. – The Institutional Longevity Markets Association (ILMA) today released their latest Investors Note entitled “Form over Intent: Understanding the Jack Teren Insurable Interest Case.”

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ILMA Welcomes Two New Allied Members

Vida Capital and Silver Point Capital Join Leading Life Markets Institutional Investors

WASHINGTON, D.C. – The Institutional Life Markets Association (ILMA) today welcomed Vida Capital and Silver Point Capital as “Allied Members” of the not-for-profit trade association.

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Life Settlement Provider Best Practices

The Institutional Longevity Markets Association (ILMA) released the “Life Settlement Provider Best Practices”, a guide of minimum compliance and diligence procedures for life settlement providers.

The full version of ILMA’s “Life Settlement Provider Best Practices” is available here.

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