Rumson Capital Raises the Bar in the Life Settlement Industry with Full Disclosure of Offers; Rumson Capital the First Life Settlement Company to Offer Full Disclosure of Transactions
JENKINTOWN, Pa.–(BUSINESS WIRE)–April 20, 2006–Rumson Capital announced today that the company will be offering full disclosure of highest-bid life settlement transactions from financial institutions to brokers. Rumson Capital, an independent life settlement company that offers unique services to those seeking to maximize their financial assets, has decided to set a new standard and be the first life settlement company to offer full disclosure. Never before in the history of the industry has a life settlement company offered full disclosure regardless of regulatory requirements.
Unlike the pricing of new life policies, the price paid for a policy in a life settlement varies widely, and the determination as to whether the offer is fair may be difficult. As a result, brokers frequently face challenges including uncertainty whether they are provided with a fair price for a policy, and determining exactly what the highest offer is and where the money is coming from. To mitigate this, consumer advocates for viators recommend that at least three bids be solicited for policies. Raising the bar for the industry, by offering full disclosure on life settlement transactions, Rumson Capital will fully disclose to brokers and viators alike exactly how much the highest bid from the financial institution is as well as the commission that Rumson Capital will be receiving on the transaction.
Because the industry’s reputation has been plagued with controversy in anticipation of increased regulatory scrutiny, Rumson Capital has made the decision to fully disclose transactions while continuing to help make retirees’ wealth work better and harder and, ultimately, optimizing their quality of life.
“Realizing that the life settlement industry has been viewed as a lot of smoke and mirrors, we are trying to do our part to revolutionize an industry that needs more regulation and are hopeful that this will be the beginning of an industry-wide trend,” said Robert Meyer, vice president and general counsel of Rumson Capital. “If brokers have a clear understanding of an offer, life settlement companies will be forced to compete fairly, resulting in a greater benefit and more money to the viator. We challenge all life settlement companies to offer full disclosure.”
“It is about time,” said Todd Shelbaugh, director of insurance, National Wealth Advisors. “It is refreshing that Rumson Capital is offering full disclosure. One of the most challenging issues I face when negotiating a life settlement is the lack of transparency - ‘what is the offer, where is it coming from?’ Rumson is single-handedly changing the way brokers do business. I trust that I am providing my clients with accurate and credible information when dealing with Rumson Capital.”
In addition to full disclosure, Rumson Capital also offers OptimumLife(SM), a combination of software and analysis by in-house medical underwriters and financial analysts to more accurately determine if a life insurance policy is initially viable for sale, if a financial institution will make a sale offer and if the offer is reasonable.
Source: Business Wire
