Settlement Broker > Medical Profiler > James Group > Escrow & Title Company > Tracking Service
A qualified settlement broker acts as the policy holder’s negotiating representative. Brokers have access to a broad network of insurance agents, planners, lawyers and accountants who refer potential life settlement clients.
The broker and the insured’s legal representative, work on behalf of their client to assemble all the necessary releases and consents to enable the policy to be considered by James Group for evaluation, underwriting and pricing. If the policy is economically viable after the underwriting process the broker will submit any quotes to the policy owner.
A critical component of pricing policies for purchase is the medical evaluation and life expectancy profiler. Once an eligible policy is located, all of the insured’s release forms and complete medical records are submitted to life expectancy evaluation providers. These leading medical and actuarial professionals then develop a mortality profile and from this a life expectancy (LE) (LE) can be determined. These providers are considered the leaders in mortality evaluations. They are neutral independent third parties with no involvement whatsoever in the outcome of the settlements process.
They provide a summary of pertinent medical criteria and determine a life expectancy rating for the insured. These determinations are based upon their gender, age and the expected outcome of their current and cumulative health ailments. The life expectancy of any individual may be impacted negatively by factors that change following the date of the evaluation.
Life settlements are based upon actuarial results related to a population that will typically include life expectancies in the range of 25 to 120 months. An L/E under 25 months is deemed to be a terminal illness and does not qualify, while an L/E over 120 months also does not qualify as it is considered too long. Life insurance is a time value instrument with the unknown element of individual term. Regardless, using statistical probabilities the average life expectancy of a senior pool can be projected with reasonable accuracy.
Medical Profilers utilized by James Group in the underwriting process are 21st Services and Midwest Medical Review
Escrow is an independent third party arrangement in which an asset, be it money, real estate, property or deed of title are held in trust pending the fulfillment of both parties contractual obligations. The James Group of companies pioneered and designed rigorous processes and procedures to avert fraudulent activities through the use of Title companies. The escrow company's anti fraud and anti money laundering programs are equal to or exceed all applicable US state and federal requirements, including the Patriot Act. The James Group has maintained the long term services of Pacific Northwest Title a division of North American Title, the largest Escrow and Title Company in the US with $US4 billion in assets. Through the involvement of stringent escrow services and in conjunction with the insurance carrier’s title transfer dept they guarantee the full and proper transfer of funds to the owner and of title to the purchaser to complete the transaction process. Download the Escrow flow chart.
The insured individual agrees to be monitored by the tracking company engaged by the new policy owner. Capital Settlements can provide the contacts for the outsourcing of the life settlement servicing. James Group recommends and uses Contract Services an Oregon based company, however others are available. Services include premium administrative support, and the tracking and monitoring of the death benefit claims process. The tracking company will maintain contact with the person designated by the insured for this purpose, including the insured’s primary physician. In addition they also have access to search on state information systems reporting deaths by Social Security number and utility billings. These methods involve the use of sophisticated database tracking systems.
As required and in adherence to state laws, the service will contact on a quarterly basis those insured’s with a life expectancy of greater than 12 months, less than 12 months contact is on a monthly basis. Upon receiving notice of the death of the insured, the tracking company obtains a certified copy of the official death certificate. Claims forms and information concerning the procedures of the carrier are collected and a claims package is prepared. The tracking company then assists the investor to finalize and submit the claim to the insurance carrier.
Insurance companies are required to pay promptly on policy claims and many states impose interest and penalties on claims not paid on a timely basis. Based on James Groups' experience, the collection period is approximately four to eight weeks from the date the death certificate is submitted to the insurer.