FORT WASHINGTON, Pa.– LAWFUEL – The US Litigation Newswire –In response to inquiries, Coventry First today issued the following statement about a lawsuit Larry King filed against a life insurance agent that assisted Mr. King in selling two life insurance policies in the secondary market for life insurance.
Although Coventry is not a party to the suit, the company believes certain statements in the complaint are susceptible to misleading and erroneous inferences about Coventry’s business practices.
The purchase and immediate sale of the $10 million dollar policy is a type of transaction that Coventry opposes and the company has been the leading proponent of legislation and regulation to protect life insurance consumers against these sorts of schemes.
Coventry did not purchase the $10 million dollar contract described on page 4 of the lawsuit which the Plaintiff admits, was taken out for the express purpose “to immediately sell his beneficial interest in the new $10 million dollar insurance policy to a third person.”
Coventry believes life insurance is a valuable asset and policyowners should keep their policies. If, however, the policy is not going to be kept, then policyowners should consider the benefits of selling their policies in the secondary market.
The lawsuit gratuitously references a lawsuit filed against Coventry by former New York Attorney General Eliot Spitzer. More than 90% of that suit has been thrown out by the court on a motion to dismiss. In addition, the state of Florida investigated the same allegations, and closed its investigation on October 1, 2007, with no finding of wrongdoing.
Coventry (http://www.coventry.com) bridges insurance and capital markets to create groundbreaking products for the financial services industry. The company is the leader in the secondary market for life insurance and pioneered the resulting life settlement industry. Fueled by bold ideas, impeccable standards and a deep understanding of structured finance and life insurance, Coventry has ignited a transformation by opening new opportunities for investors, consumers and the financial professionals who serve them. Based in Fort Washington, PA, Coventry is the first secondary market company to ever receive Standard & Poor’s highest Servicer ranking and was ranked #1 in the insurance category of the INC. 500 listing of the fastest growing privately held companies in America.