#USA #Tallahassee #Coventry First #Lapetus Solutions #life expectancy

Coventry Responds to Lapetus' Claims

Coventry First LLC, a recognized leader in the secondary market for life insurance settlements, has recently issued a legal statement opposing Lapetus Solutions, Inc.'s efforts to prevent the release of legally mandated audit reports concerning life expectancy estimates. This move highlights Coventry's long-standing assertion that market credibility in life insurance settlements hinges on transparency about the accuracy of life span predictions.

In a motion for summary judgment, Coventry asserts that with Lapetus announcing its impending shutdown on August 31, 2025, the company's claim to trade secret protection is void. Under Florida law, providers of life expectancy estimates are obligated to submit audit reports to the Florida Office of Insurance Regulation every three years, covering five years of prior data. However, these reports only assess the accuracy of previous predictions without disclosing the methodologies that led to those predictions. Coventry argues that such reports therefore cannot qualify for trade secret status.

Moreover, Lapetus has openly advertised its accuracy metrics through marketing materials, official statements, and direct communications with Coventry. Consequently, Coventry believes that any decision favoring Lapetus regarding trade secrets would be unjustified and should be dismissed.

Alan H. Buerger, Executive Chairman at Coventry, emphasized the critical need for reliability in life estimates to protect investors and ensure the integrity of the life insurance settlement market. He stated, “Both investors and regulators need to trust that life expectancy estimates are accurate, reliable, and compliant with actuarial standards. Transparency safeguards investors and sustains the trustworthiness of the entire secondary market for life insurance settlements.”

Coventry has remained committed to advocating for consumer rights and has been actively promoting stringent industry regulations, as evidenced by its legal response to Lapetus’ claims.

The Importance of Accurate Life Expectancy Estimates

The stakes in this case extend beyond the courtroom. Life expectancy estimates are vital for pricing life insurance on the secondary market. Systematic underestimations of these figures can mislead investors, result in substantial financial losses, and erode confidence in the market. Buerger underlined in support of the motion that independent academic reviews have shown Lapetus' life expectancy estimates fell short in over 80% of tested cases, with the actual outcome-to-expected ratio merely reaching 31%. This falls significantly below the declared threshold of 96.3% accuracy by Lapetus.

Florida regulators identified problems with life expectancy estimates linked to the $800 million Mutual Benefits fraud, robustly indicating the tremendous impact of unreliable life estimates. In response, legislation was enacted, mandating life expectancy providers to register with the Office of Insurance Regulation and submit regular audit reports to avert similar lapses.

About Coventry

Coventry is a founding leader in the secondary life insurance market and has been pivotal in nurturing industry growth for over two decades, enhancing opportunities for policyholders. With a deep-rooted commitment to consumer rights and a wealth of experience, Coventry stands as an undeniable market leader. To date, the company has disbursed over $6 billion to owners of life insurance policies they no longer needed. For more information, visit Coventry.com.