Life Settlement Firm Targeted For Fraud In Texas

Article Posted by Expert Author: Adam Foley  on 04/08/2013

Life Partners, a life-settlement provider accused of fraud is the target of Texas officials, who have requested the authority to seize their assets from a state district court judge. The lawsuit contains information warning that the Life Partners company could run out of money in as few as sixty days.

 

The Life Partners company, one of many which formed in the early 2000s, hit financial trouble when 2008's economic crisis occurred, leaving it unable to get additional funding. In addition, the SEC reported at the beginning of this year that the actuarial tables crafted by the company were done so by an individual with no formal training in the practice. Because of this, investors have had to lengthen the amount of time they pay premiums, which will cause a delay in payouts.

 

The company's assets have been frozen, and Life Partners is, as such, no longer able to destroy any records or equipment. However, the company is still reporting the payment of dividends to share holders of approximately $1.8 million despite its high net losses.

 

Make sure you only do business with an insurance company that has a solid reputation behind it.  At The State Insurance Guide we have reviewed trusted companies that have been in business for decades, with high ratings that indicate your future is safe in their hands.

 


Article Posted In:  Consumer & Industry News  Life Insurance Companies  

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