I need specific information regarding the Life Settlement Industry.
Life Settlements are existing life insurance policies, sold in the
secondary market. Investors buy these policies based on Life
Expectancies attributed to the insured by underwriting companies. If
the Life expectancy is off, the investors may suffer losses. It is my
belief therefore, that the widespread practice of investors is to
purchase reinsurance, to cover themselves in a case where the insured
exceeds his Life Expectancy.

This is my question: 
I need a list off all these reinsurance or bonding companies.
Their contact numbers or website.
The underwriting companies they use to determine the Life Expectancy.
Their credit rating.
I currently have three of them, LSRM, PCI, IFS, but there should be
more and better established.
GO GET THEM

Greetings,
This subject has been raised before:

http://answers.google.com/answers/threadview?id=518132

As I understand it, "life settlements" are usually pooled to create a
fund, so it is not just a one-on-one bet on the actuarial statistics,
but rather the investor is buying a pool, so that the actuarial
statistics average out.  Furthermore, the pricing for buying the
policies adds a cushion.  The investors  - not the people who arrange
life settlement funds -  are individuals who would not have access to
the reinsurance market.  If there are professional organisations
investing, they will be more cognizant of the fine points and also
forego the expense of reinsurance.
Myoarin

myoarin:

Thanks for the link and comments. I must say however that it does not
resolve my question. You assume that the investors usually pool their
money together to spread the risk. However there are small investors,
who don't want to pool their assets with other investors, and thereby
pay a hefty premium. Insurance companies like the ones I reference in
my question are there to service the smaller investor. What I am
looking for, is for a reliable company with a solid credit rating .
acquire1

Greetings Acquire1,
Thanks for your reply.  Having looked at the sites of those three
entities, I am still of the opinion that life settlements are
purchased by investment companies which create a pool and sell
participations to individual investors. That is what the sites
suggest.  The "small investor" is served by having this "packaging"
done for him.  As one site mentioned, the minimum investment would be
$50,000, probably less than an idividual life insurance policy. 
Besides, most people would prefer not to buy a life settlement on just
one individual, betting on the person's dying before the time used to
calculate the price.

Let me say personally, I have no problem with the concept of life settlements.

As to the bonding of such, I found it "intriguing" that LSRM, a UK
company, uses an Italian insurer.  From this site, I understand
"# Tier 3- Contestability cover plus Extended Longevity for 6%
premium. For investors wanting full coverage for both Contestable and
Extended Longevity at LE+1."
http://www.lsrm.co.uk/contestability_cover.htm

A 6% premium on the chance that a whole portfolio of life settlements
runs to "extended longevity" is also "a hefty premium".

With IFS, I was "intrigued" that the bonder is on the small Pacific island Venuatu:
http://www.ifslimited.com/solutions.html

Here are the pages from PCI:
http://www.investoffshoredirect.com/Default/PCI_Investment_Management
http://www.investoffshoredirect.com/Default/Lansdown_Atlantic_Life_Settlement_Fund
http://www.investoffshoredirect.com/Default/Traded_Life_Policies

Note, in the last site it says:
"The following list of special policy offerings are offered as
fractions of actual single policies currently on sale by the current
owners."

The offer is for a participation in a pool.

Looking again at your comment, I don't know how a single investor
could find a single life policy holder that wanted to sell the policy,
and then find a bonder to cover the "Extended Longevity" (besides my
questioning the bonders mentioned).

If you feel that I have misunderstood the subject, please feel free to say so.
Regards, Myoarin

Myoarin:
Thanks again for your time, and insight.
I would like to direct you to the following site. It is there that I
got two of the Bonding companies I reference.
http://www.profinancialgroupinc.com/index.php?s=15

As you can see, they have what they call "institutional Life
Settlement" and "Bonded Life Settlement". The bonded Life Settlement
is for the private investor who buys a policy that is insured against
extended longevity. This precisely interests me, but I hesitate for
two reasons.
1. Who are these bonding companies? Why aren't there any in the United States?
2. I am well connected with brokers and providers and I know that I
can get a policy for I much better price on my own.
Therefore my question remains are there any reliable
bonding/reinsurance companies with an investment grade credit rating?

Acquire1,
Thanks for the additional information and that link.
I agree entirely with your suspicions, and I now understand that the
bond (at least in one case) only covers the investment if the person
lives 12 months longer that actuarially expected, perhaps more
correctly:  cover the first year at a lower premium, but then that
jumps to a much higher one to cover the eventuality that the person
lives more than 12 months longer than expected.

Yes, who are the bonders?  And why are they based in Veneatu and Costa Rica?
And not nearer home?   Seems like a reputable source of life
settlements would prefer to use a US or European bonder if possible. 
So, why not??

On that link, the example of a policy, $8.5 million for a couple on
the death of the survivor, suddenly made me suspicious.  Who would
take out such a policy, have had the cash to pay the premiums to do so
 - and not have known a better investment for his money.  Even if the
insurance policy were be based on 40 years' life expectancy with a
fantastic 10%pa interest (disregarding commission for the insurer),
the annual premium would have been more than $19,000.
Someone with that kind of money in 1970 would not have put it in a
life insurance policy,  Sure, there may be the exception, but it does
not seem logical if one has any recollection of salaries and
investment values back then.
 
My suspicion questions not only if that example is correct but also
the seriousness of the firm that uses it as an example.

As I mentioned before, I think life settlements can be a good thing
for the sellers and that there can be an ethical and honest market for
them, but
there is also the possibility that the concept is "misused".

Regards, Myoarin

Myoarin,

I believe there is money to be made not only for the sellers, but for
investors. The trick is not to get caught by the imposters. As this
industry will mature regulations and oversight will weed out the bad
guys, and in the process diminish the rate of return, the old rule of
risk versus reward. I believe therefore that the time is now, hence my
question where can I find reinsurance and bonding companies that are
credible.

By the way in the seventies (as it is now) life insurance was a great
investment vehicle, mainly for its tax advantages. With estate taxes
at 55% most people would want their money paid put as a life insurance
payment.

acquire1