Unlike the life settlement broker, who represents the seller, a life settlement provider represents the buyer in funding life settlement transactions.
In the process of funding life settlement transactions, a life settlement provider often performs various duties including:
Sometimes the life settlement provider is the entity funding a life settlement transaction and using their own money to buy the policy for:
Some regulations prohibit a life settlement broker from funding life settlement insurance transactions with a life settlement provider or buyer that is controlled by, or under common control with the life settlement broker. To avoid this conflict, policysettlement.com discourages the funding of life settlement transactions through life settlement brokers who are under common control with any life settlement provider or buyer.
Vetting a life settlement provider is usually done by your life settlement broker before funding a life settlement or viaticals transaction. In regulated states, they may be able to access the public annual statement the life settlement provider is required to submit to the state insurance department. In non-regulated states, they should request and review the same information that is required in regulated states.