Classifying life settlement securities will depend on laws of each state where a settlement fund is managed.Most federal and state regulatory bodies define the term security on a very broad basis. Currently clarification is needed from state securities boards or each state insurance commission. At the federal level if a life settlement securities were recognized, anti- fraud provisions would apply and the person acting as the manager would have to register as an Investment Advisor if the fund held more than 30 million dollars of assets. It is typical for managers not to want to register as an investment advisor because they are then subject to taking the Series 65 exam and then they are subject to keep certain records and are subject to ongoing education requirements. Also at the federal level life settlement securities take consideration is to activity. If a life policy is purchased and held to maturity a life policy settled most likely would not be considered a security. If the policy is traded or sold such activity may then classify this asset as a security. If you are a consumer interested in seeing what you life policy is worth visit our LIVEpdq link for a free valuation.