Company Profile
FairMarket Life Settlements Corp.
Company Overview
FairMarket Life Settlements Corporation is a life insurance settlement company. The life settlement industry is a relatively new industry based on the purchase of life insurance policies from people who no longer want or need them. The price paid is greater than the policy owner would get if the policy were surrendered to the insurance company.
The senior management team has more than 50 years of combined experience in the viatical and life settlement business, making it the most seasoned and experienced in this industry. In addition, the Company's Board and its parent bring to bear a further collective 100 years of financial and insurance sales and services expertise prior to participating in this industry.
Company History
FairMarket Life Settlements Corp. ("FMLS" or the "Company") was incorporated in January 2004. The management and core personnel of FMLS are noted for their expertise in the life settlement business, their tradition of regulatory support and their long experience with institutional funding. The Company’s Management has been in the institutionally funded viatical and life settlement business since 1992 working with domestic and international financing partners such as Berkshire Hathaway/Gen Re, Deutsche Bank, Credit Suisse First Boston, the KGAL Group, HBK Inc. and Preferred Asset Management. The Company's business strategy is centered around providing a valuable service to individual, corporate and trust policy owners who have either estate planning needs or desire to monetize or exchange their policies. Working from the perspective of the policy owner and his/her professional advisors has enabled the Company to take a long-term view regarding the promulgation of a suitable industry infrastructure and appropriate regulation to protect the rights of the insured and the policy owner, including industry oversight and broker standards. It presently uses Wells Fargo Bank as escrow agent for its settlement transactions.
In July 2004, FMLS commenced its operations when it concluded its initial policy financing through a non-exclusive agreement with a German closed-end life settlement investment fund, with assets of over $250 million and has since entered into agreements with several additional financing entities with aggregate assets under management in excess of $10 billion. Each of the Company's funding sources is institutional and is purchasing policies to hold for investment in its own respective account(s).
FMLS believes that appropriate external regulation of the industry will aid in screening out originators and brokers who do not have the requisite experience, outlook or do not place the proper emphasis on the disclosures and protections to be provided to the policy owner. Hence, the Company is a major proponent of the adoption by each state of appropriate and effective legislation. As a company committed to institutional funding, FMLS also advocates state securities regulation of the financing of settlement investments by non-accredited, individual investors.
As noted earlier, FMLS' Management has been a leading participant in the NAIC working group that developed a model act to regulate all aspects of the life settlement market. Following are highlights of several amendments which were provided to the NAIC working group by members of Management and which have been incorporated in the revised NAIC “Model Act.”
The senior management team has more than 50 years of combined experience in the viatical and life settlement business, making it the most seasoned and experienced in this industry. In addition, the Company's Board and its parent bring to bear a further collective 100 years of financial and insurance sales and services expertise prior to participating in this industry.
Notable Clients
Mizuho International, Deutsche Bank
Notable Accomplishments / Recognition
FairMarket Life Settlements Corporation is a life insurance settlement company. The life settlement industry is a relatively new industry based on the purchase of life insurance policies from people who no longer want or need them. The price paid is greater than the policy owner would get if the policy were surrendered to the insurance company.