Life Partners, Inc.
Anti-Fraud Public Awareness Campaign
The persistence of insurance fraud is an ongoing concern across all sectors of insurance, including life insurance and consequently the life settlements industry. The Coalition Against Insurance Fraud estimates that insurance fraud costs American consumers over $80 billion per year1. As a licensed life settlement provider, Life Partners, Inc. ("LPI") takes very seriously its role to detect and distance itself from fraudulent policies and applications.
Many states regulate "fraudulent life settlement acts." While the precise definition of a fraudulent life settlement act varies by state, generally it is the fraudulent presentation of any written statement or physical evidence in a life settlement transaction that contains materially false information or conceals, for the purpose of misleading, any material fact.
Common examples of this include misrepresenting or altogether omitting an insured's negative health history or lifestyle habits, such as smoking, illegal drug use, traffic violations, or financial situation.
Who can commit a fraudulent life settlement act?
What penalties exist for a fraudulent life settlement act?
What does Life Partners, Inc. do to prevent fraudulent life settlement acts?
1. "How big is $80 Billion? (bigger than you think!)." Coalition Against Insurance Fraud, June 2005. http://insurancefraud.org/80_billion.htm.
Insurance Information Institute. http://www.iii.org/
"Lies that could kill your life insurance," MSN Money, Dec. 2009. http://articles.moneycentral.msn.com/Insurance/InsureYourLife/lies-that-could-kill-your-life-insurance.aspx?page=1.