Common Securities Law Questions in the Life Settlements and Life Insurance Premium Finance Industries

Abstract

This article examines three securities-related questions frequently encountered in the life settlements, or secondary life insurance, and the life insurance premium finance markets: 1) Life insurance policy put or call agreement: Is it a security? 2) A fund that owns life-settlement-acquired life insurance policies of life insurance premium finance loans: Is it an investment company? 3) Life insurance premium finance loan: Is it a security? The questions are analyzed only under the federal securities laws, but a similar analysis would obtain under most states' securities laws where they apply.