LIFE SETTLEMENT

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LIFE SETTLEMENT PROCESS OVERVIEW
FOR AGENT/REPRESENTATIVE USE ONLY. NOT TO BE
SHOWN TO OR USED WITH THE PUBLIC.
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Life Settlement Process OverviewUNDERWRITING /
OFFER-BID PROCESS
OVERVIEW OF THE PROCESS
Detail on next slides
LIFE SETTLEMENT PROVIDER
LIFE SETTLEMENT PROVIDER
LIFE SETTLEMENT PROVIDER
FINANCING ENTITY
INSURED/ POLICY OWNER
LIFE INSURANCE POLICY
Agent
INVESCOR, LTD. LIFE SETTLEMENT BROKER
LIFE SETTLEMENT PROVIDER
LIFE SETTLEMENT PROVIDER

• CASE VIABILITY
• CASE SUPERVISION
• TRAINING SUPPORT
• DUE DILIGENCE
• BEST EXECUTION

FINANCING ENTITY
LIFE SETTLEMENT PROVIDER
LIFE SETTLEMENT PROVIDER
LIFE SETTLEMENT PROVIDER
FINANCING ENTITY
Life Settlement Providershave a fiduciary duty
to Financing Entities
Agents representing Policy Owners in Life
Settlement transactions have a fiduciary duty to
those Policy Owners
Fiduciary Duty
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Life Settlement Process Overview UNDERWRITING /
OFFER-BID PROCESS
OVERVIEW OF THE PROCESS
INSURED / POLICY OWNER
LIFE INSURANCE POLICY
Agent
In-force Life Insurance Policies What Are The
Options?
As time passes, many consumers face changing life
circumstances. If policy owners find that a life
insurance policy no longer meets their needs,
they may consider these options

• Reducing the face amount
• Surrendering the policy
• Letting the policy lapse
• Exercising a non-forfeiture option
• Settling the policy in a life settlement
  transaction

Policy owners should explore all available
options and decide which one best fits their
unique needs.
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Life Settlement Process Overview UNDERWRITING /
OFFER-BID PROCESS
OVERVIEW OF THE PROCESS
INSURED / POLICY OWNER
LIFE INSURANCE POLICY
Agent
The Financial Professional
The policy owner works with an appropriately
licensed agent who will represent their best
interests. When representing a policy owner in a
life settlement, the agent has a fiduciary duty
to that policy owner. The agent may or may not
be the person who originally sold the life
insurance to the policy owner.
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Life Settlement Process Overview UNDERWRITING /
OFFER-BID PROCESS
OVERVIEW OF THE PROCESS
INVESCOR, LTD. LIFE SETTLEMENT BROKER
INSURED/ POLICY OWNER
LIFE INSURANCE POLICY
Agent
The Life Settlement Broker
As a licensed life settlement broker, Invescor
will assist the agent in determining the
viability of the life settlement case. This
process begins with the agent completing a
pre-qualifying worksheet. If the policy owner is
both a good candidate and the policy has a good
probability for a life settlement, the client
completes a life settlement application and
authorization for medical record
release. Invescor orders medical records for the
insured and life expectancy reports, along with
an in-force life insurance policy illustration
and verification of coverage from the insurance
carrier.
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Life Settlement Process Overview LIFE SETTLEMENT
PROBABILITY SCORING
Will the policy owner qualify for a life
settlement payment that is higher than the net
cash surrender value? The agent completes a
Pre-Qualifying Worksheet with a cumulative point
scale to determine life settlement probability.
Score Life Settlement Probability
Less than 14 Not likely to receive a life
settlement offer 15 18 Please
call Invescor, Ltd. review file 19 24
Good case complete application 25 28
Excellent case complete application
These individuals may be the ideal policy owners
for a Life Settlement solution.
19 28
CLICK TO ENLARGE
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ltltlt BACK
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Life Settlement Process Overview LIFE
SETTLEMENT PROBABILITY SCORING
Once you have established that your client has a
life settlement probability score of 19-28,
these are the next steps
19 28

• Your client completes an Invescor application and
  authorization for medical record release. A
  minimum of two life expectancy reports are then
  ordered.
• Once medical records are received, life
  expectancy reports are in place and an internal
  valuation has been completed, the file is sent to
  all appropriate life settlement providers that
  have passed our due diligence process,
  accompanied by at least one in-force life
  insurance illustration.

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Life Settlement Process Overview UNDERWRITING /
OFFER-BID PROCESS
FIDUCIARY DUTY
What is Fiduciary Duty?

• A fiduciary is prohibited from acting in a manner
  adverse to the interests of the policy owner.
• When representing a policy owner in a life
  settlement transaction, the agent owes a
  fiduciary duty to the policy owner, and must act
  according to the policy owners instructions.
• Under the National Association of Insurance
  Commissioners (NAIC) Revised Model Act, a
  viatical settlement broker is deemed to represent
  only the viator, and not the insurer or the
  viactical settlement provider, and owes a
  fiduciary duty to the viator to act according to
  the viators instructions and in the best
  interest of the viator.
• Similarly, under the National Conference of
  Insurance Legislators (NCOIL) Model Act, an
  agent represents only the owner and owes a
  fiduciary duty to the owner to act according to
  the owners instructions, and in the best
  interest of the owner.

Generally, Fiduciary Duty is an obligation to act
in the best interest of another party. Each life
settlement broker owes the seller (policy owner)
a fiduciary duty
INVESCOR, LTD. LIFE SETTLEMENT BROKER
INSURED/ POLICY OWNER
LIFE INSURANCE POLICY
Agent
Agents representing Policy Owners in Life
Settlement transactions have a fiduciary duty to
those Policy Owners
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Life Settlement Process Overview UNDERWRITING /
OFFER-BID PROCESS
OVERVIEW OF THE PROCESS
INVESCOR, LTD. LIFE SETTLEMENT BROKER
LifeSettleWare
Invescor, Ltd. is a licensed life settlement
broker that has processed more than 1,700 life
settlement transactions surpassing 3.3 billion
in aggregate face value. Invescor, Ltd. has
relationships with 20 life settlement providers
that have met its due diligence
requirements. LifeSettleWare is a proprietary
online tool that enables full transparency and
full disclosure of life settlement cases
throughout the entire life settlement process.
LifeSettleWare also enables Invescor, Ltd. to
invite all life settlement providers who meet the
case parameters and due diligence requirements to
simultaneously bid on policies while tracking and
documenting all offers and bids as they are
received.
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Life Settlement Process Overview UNDERWRITING /
OFFER-BID PROCESS
LIFE SETTLEMENT PROVIDER
LIFE SETTLEMENT PROVIDER
LIFE SETTLEMENT PROVIDER
INVESCOR, LTD. LIFE SETTLEMENT BROKER
LIFE SETTLEMENT PROVIDER
LIFE SETTLEMENT PROVIDER
LIFE SETTLEMENT PROVIDER
LIFE SETTLEMENT PROVIDER
LIFE SETTLEMENT PROVIDER
A Competitive, Negotiated Marketplace
Life settlement providers submit their bids to
Invescor, Ltd. to acquire the life insurance
policy. Invescor, Ltd. attempts to create
competition to drive up the offers and bids and
negotiates with the life settlement providers on
behalf of the agent and their policy owner.
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Life Settlement Process Overview UNDERWRITING /
OFFER-BID PROCESS
The Life Settlement Provider and Financing Entity
Life settlement providers may attempt to acquire
policies for their own portfolio or for a
financing entitys portfolio. Life settlement
providers have a fiduciary relationship to the
financing entity. Financing entities are
typically large financial institutions with
significant funds to invest that have agreements
with life settlement providers to provide the
necessary capital to buy in-force life insurance
policies. They acquire these policies and pay the
ongoing policy premiums. Policies are typically
pooled with other policies. These pools may then
become asset-backed securities that are sold to
investors (similar to what transpires in the
mortgage business). The provider is required to
keep the insureds identity confidential from the
investors in these transactions. The life
settlement provider or a servicing company
administers the records and keeps the policy
in-force until maturity. Since the policy remains
in-force, the life insurance company continues to
receive the premium payments when due.
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Life Settlement Process Overview UNDERWRITING /
OFFER-BID PROCESS
FIDUCIARY DUTY
What is the Life Settlement Providers Fiduciary
Duty?

• The life settlement provider is trying to buy the
  life insurance policy for the lowest possible
  price and assuring clear title to the asset
• A life settlement provider represents only the
  financing entity and owes a fiduciary duty to the
  financing entity to act according to the
  financing entitys instructions, and in the best
  interest of the financing entity

Generally, Fiduciary Duty is an obligation to act
in the best interest of another party. The
relationship can exist whenever one person (the
principal) places special trust in another (the
agent) to exercise discretion or expertise to act
on behalf of the principal. A fiduciary is
prohibited from acting in a manner adverse to the
interests of the principal and from acting for
their own benefit.
Life Settlement Providershave a fiduciary duty
to Financing Entities
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Life Settlement Process Overview UNDERWRITING /
OFFER-BID PROCESS
1. REQUESTS FOR BIDS
LIFE SETTLEMENT PROVIDER 1
LIFE SETTLEMENT PROVIDER 2
REQUEST FOR BID
LifeSettleWare invites offers-bids from approved
life settlement providers. Financing entities
provide the funds to life settlement providers to
buy them on their behalf. Life settlement
providers may buy policies for their own
portfolio or resell them to financing entities at
a later date.
LIFE SETTLEMENT PROVIDER 3
FINANCING ENTITY
LIFE SETTLEMENT PROVIDER 4
REQUEST FOR BID
LIFE INSURANCE POLICY
LIFE SETTLEMENT PROVIDER 5
FINANCING ENTITY
LIFE SETTLEMENT PROVIDER 6
REQUEST FOR BID
LIFE SETTLEMENT PROVIDER 6
LIFE SETTLEMENT PROVIDER 7
FINANCING ENTITY
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Life Settlement Process Overview UNDERWRITING /
OFFER-BID PROCESS
2. OFFERS RETURNED
LIFE SETTLEMENT PROVIDER 1
OFFER 200K
REQUEST FOR BID
LIFE SETTLEMENT PROVIDER 2
OFFER 210K
All offers-bids are fully disclosed and
communicated to you, the agent, through
LifeSettleWare, Invescors proprietary web-based
software.
LIFE SETTLEMENT PROVIDER 3
OFFER 250K
FINANCING ENTITY
LIFE SETTLEMENT PROVIDER 4
LIFE INSURANCE POLICY
REQUEST FOR BID
DECLINED TO MAKE OFFER
LIFE SETTLEMENT PROVIDER 5
OFFER 260K
FINANCING ENTITY
LIFE SETTLEMENT PROVIDER 6
OFFER 280K
REQUEST FOR BID
LIFE SETTLEMENT PROVIDER 7
OFFER 350K
LIFE SETTLEMENT PROVIDER 8
DECLINED TO MAKE OFFER
FINANCING ENTITY
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Life Settlement Process Overview UNDERWRITING /
OFFER-BID PROCESS
3. OFFERS PRESENTED TO CLIENT
INSURED / POLICY OWNER
INVESCOR, LTD. LIFE SETTLEMENT BROKER
Agent
LIFE SETTLEMENT PROVIDER 7
NET BID AFTER COMMISSION
GROSS BID 350K
Highest Offer Wins at 350,000
In this example, life settlement provider number
7 submits the best offer/highest bid through
LifeSettleWare. Invescor, Ltd. communicates the
gross offer to the agent, who then discusses with
the policy owner the gross offer and the net
amount (after commissions) that the policy owner
will receive for selling the policy. The
difference between the gross and net amount is
the commission paid to Invescor, Ltd. and the
agent representing the policy owner.
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Life Settlement Process Overview ACCEPTANCE
PROCESS
OVERVIEW OF THE ACCEPTANCE PROCESS
INVESCOR, LTD. LIFE SETTLEMENT BROKER
LIFE SETTLEMENT PROVIDER
Accept / Reject
Once all bids have been received, the policy
owner can choose to accept or reject the highest
offer. Once an offer is accepted, closing
documents are prepared by the life settlement
provider and forwarded to you for completion with
the client.
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Life Settlement Process Overview ACCEPTANCE
PROCESS
OVERVIEW OF THE ACCEPTANCE PROCESS
INSURED/ POLICY OWNER
Agent
INVESCOR, LTD. LIFE SETTLEMENT BROKER
LIFE SETTLEMENT PROVIDER
FINANCING ENTITY
ACCEPTS OFFER
Accept / Reject
If they accept, the financial professional
conveys their clients acceptance to Invescor by
completing the following three documents
Acceptance is then forwarded to the life
settlement provider.

• Life Settlement Offer-Bid Disclosure Acceptance
  (signed by the policy owner)
• Life Settlement Transaction Disclosure to
  Policy Owner(s) (signed by the policy owner)
• Life Settlement Agent/Broker Commission
  Acceptance Disclosure Agreement (signed by the
  agent)

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Life Settlement Process Overview CLOSING PROCESS
OVERVIEW OF THE CLOSING PROCESS
OR
INSURED/ POLICY OWNER
FINANCING ENTITY
LIFE SETTLEMENT PROVIDER
LIFE INS. COMPANY
LIFEINSURANCE POLICY
AGENT
INVESCOR, LTD. LIFE SETTLEMENT BROKER
NOW HAS A NEW OWNER
Changed owner beneficiary
ESCROW DEPOSIT
1. Prepares closing documents 2. Reviews executed
documents for accuracy 3. Orders verification of
coverage. 4. Approves file 5. Requests owner
beneficiary changes
Invescor, Ltd. reviews closing documents for
deficiencies
Client receives, executes, returns closing
documents
ESCROW
The life settlement provider prepares the closing
documents (e.g., contract of sale and
state-required disclosures). They are reviewed
for accuracy by Invescor and sent to the
financial professional for execution by the
client.
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Life Settlement Process Overview CLOSING PROCESS
OVERVIEW OF THE CLOSING PROCESS
The agent meets with the client and obtains the
necessary signatures. The completed paperwork is
returned to Invescor, Ltd. to check for
completeness.
INSURED/ POLICY OWNER
AGENT
INVESCOR, LTD. LIFE SETTLEMENT BROKER
Invescor, Ltd. reviews closing documents for
deficiencies
Client receives, executes, returns closing
documents
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Life Settlement Process Overview CLOSING PROCESS
OVERVIEW OF THE CLOSING PROCESS
LIFE SETTLEMENT PROVIDER
INVESCOR, LTD. LIFE SETTLEMENT BROKER
Invescor, Ltd. reviews closing documents for
deficiencies
Closing Documents (Contract Of Sale) Process
Once it is determined that there are no
deficiencies, Invescor, Ltd. sends the documents
to the life settlement provider.
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Life Settlement Process Overview CLOSING PROCESS
OVERVIEW OF THE CLOSING PROCESS
OR
FINANCING ENTITY
LIFE SETTLEMENT PROVIDER
LIFE INS. COMPANY
LIFEINSURANCE POLICY
NOW HAS A NEW OWNER
Changed owner beneficiary
ESCROW DEPOSIT
1. Prepares closing documents 2. Reviews executed
documents for accuracy 3. Orders verification of
coverage. 4. Approves file 5. Requests owner
beneficiary changes
ESCROW
Review for Accuracy
Upon receiving closing documents, the life
settlement provider will review them for accuracy
and completeness, and order a verification of
coverage from the life insurance carrier. Once
satisfied that the file is complete, all
appropriate signatures have been received, and
verification of coverage is confirmed, the file
is approved and sent to the escrow agent. Change
of ownership and beneficiary forms are then
forwarded to the life insurance company.
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Life Settlement Process Overview PAYMENT
COMMISSION PROCESS
OVERVIEW OF THE PAYMENT COMMISSION PROCESS
FINANCING ENTITY
LIFE SETTLEMENT PROVIDER
ESCROW DEPOSIT
AGENT
INVESCOR, LTD. LIFE SETTLEMENT BROKER
INVESCOR PAYS AGENT
ESCROW
INSURED/ POLICY OWNER
Commission is released after rescission period (3
- 60 days)
POLICY OWNER Receives Settlement Payment
Settlement Payment Commission Process
Typically, settlement proceeds are placed into an
escrow account by the life settlement provider.
Settlement proceeds are paid to the owner once
confirmation of the change of ownership and
beneficiary are received. Commissions are paid
to Invescor, Ltd. from escrow upon expiration of
the rescission period and Invescor pays
commissions to the agent.
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Life Settlement Process Overview
Life Settlement Timeline
If all goes well, 2 ½ to 3 ½ months!
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Life Settlement Process Overview THE LIFE OF THE
POLICY
AFTER THE SALE
A life settlement service provider continues to
pay premiums to keep the policy in-force until
insureds death.
AT DEATH OF THE INSURED
LIFE INS. COMPANY
Pays Death Claim
Pays Premium
FINANCING ENTITY
LIFE SETTLEMENT PROVIDER
When the policy matures as a death benefit, the
life insurance company pays the proceeds to the
beneficiary of record.
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Life Settlement Process Overview GLOSSARY OF
TERMS
GLOSSARY OF LIFE SETTLEMENT TERMS
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Life Settlement Process Overview GLOSSARY OF
TERMS
GLOSSARY OF LIFE SETTLEMENT TERMS