FORT WASHINGTON, Pennsylvania -
- Agreement Outlines Industry Best Practices; No Fine or Penalty Assessed
Coventry First announced today that it has settled a civil lawsuit filed in October 2006 by the New York Attorney General’s office.
In the course of the litigation, the Attorney General determined that Coventry First should have paid policyowners an additional US$1,447,285 for the market value of their life insurance. Under the settlement agreement, Coventry First also agreed to pay US$10,552,715 to the State of New York to end the litigation.
Coventry was not assessed any fine or penalty in connection with the settlement.
Coventry has paid more than US$2.8 billion to consumers for insurance policies they no longer need. Over the past 12 months, Coventry has paid policyowners five times more than they would have received had they surrendered their policies back to the insurance company.
The parties agreed on a set of business practices that establishes a model for the life settlement industry. The agreement provides for disclosure to New York policyowners of the compensation paid to intermediaries in life settlements. Coventry has long supported legislation in New York requiring full disclosure of compensation to intermediaries who facilitate life settlements. Coventry has agreed to cooperate with the NYAG to ensure that the industry continues to support the interests of consumers.
Coventry CEO Alan Buerger expressed appreciation for the Attorney General’s “attention to these important issues in our developing industry.” Mr. Buerger said he “hopes the Attorney General will continue to look into issues affecting policyowners, especially the anti-consumer actions of the life insurance companies that are calculated to deprive policyowners of the full market value of their policies.”
Mr. Buerger cited numerous examples where certain life insurers prohibit agents from informing consumers of their options in the secondary market or terminate representatives who participate in the market. “We will continue to fight for consumers’ rights to access the market value of their life insurance policies,” said Mr. Buerger. “We are proud to have created this market and to have paid consumers billions of dollars for their unneeded life insurance.”
About Coventry
Coventry created the secondary market for life insurance in the US. By uniquely bridging insurance and capital markets, the company pioneered the life settlement industry and opened a new class of longevity-based assets for institutional investors worldwide. Today, Coventry is a global financial services firm leading the development of a robust longevity market. Coventry is based in Philadelphia with offices in London and Hong Kong.
Media Contact Stuart Wood Director, Communications +1-215-836-8314 swood@coventry.com
Source: Coventry
Stuart Wood, Director, Communications of Coventry, +1-215-836-8314 , swood at coventry.com
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