Life settlement litigation does happen. There are many reasons for life settlement litigation and the plaintiffs vary from individuals to insurance companies and investment companies or investors. To help avoid litigation the first step is to be completely honest in your dealings with the insurance company, the settlement company and your life settlement broker. Life settlement litigation is often the result of dishonesty on the part of one party. There have been several large cases that have resulted in litigation and put a spotlight on some of the unscrupulous and dishonest aspects of the life settlement industry.
If you bought your policy for the sole purpose of selling it in the future and this can be reasonably proven you may face litigation. If you made material misstatements with regard to your health, wealth or intent you may face litigation.
Another area where you see life settlement litigation with regard to the enticement of an individual by a life settlement company or broker. In these cases you will often find that criminal charges are also involved.
Competency to make a decision is also a factor in life settlement litigation. Is the individual making the decision to sell the policy legally competent to make that decision? That is a question I ask when meeting with someone for the first time. It is wise to seek legal counsel should you have any concern in this regard.
There are other aspects of litigation that from time to time arise. Ownership of policies, best interest of beneficiary of the settlement and the ultimate benefit of the settlement are all areas of concern.
The best advice I can give is to be honest, if you have question or concern voice it at the beginning of the settlement process. And, as always, it is best to seek legal counsel before an issue arises. For more information please click on LIVEpdq.