Company History
   

Senior Settlements, LLC (SSLLC) was founded in December 1998 by Mr. William R. Schantz, III to originate, analyze and purchase life settlements. Since its inception, SSLLC has been a pioneer in the secondary market for life insurance and remains one of the longest standing life settlement companies. Over the last twelve (12) years, SSLLC has seen explosive growth in the life settlement industry. Historically the secondary market for life insurance was offered only to terminally ill individuals who incurred substantial medical expenses as a result of their illnesses and were in need of financial assistance. However, terminal illness is no longer the only motivating factor for an individual seeking to sell his or her life insurance policy.   Instead, any senior over the age of sixty-five (65) can take advantage of this valuable financial planning tool, regardless of his or her health condition. Seniors routinely forfeit their life insurance policies for a variety of reasons. Perhaps the premiums have become burdensome, the beneficiaries may no longer need the protection or a survivorship policy may simply be a better option. Whatever the reason, a life settlement in most cases is a better option than cancelling or surrendering the policy.

 

SSLLC utilizes an extensive network of third party brokers as its primary source of life settlement opportunities. The third party brokers include: broker general agents (“BGAs”), life settlement brokers, agents, attorneys, and financial planners. Brokers provide a number of services, including: (i) locating potential clients through various means such as direct marketing, advertising, and agent networks, (ii) collecting the documentation and information necessary for SSLLC to make a bid on the client’s life insurance policy, and (iii) assisting in the execution of purchase agreements. SSLLC’s broker network consists of approximately two hundred forty-five (245) brokers throughout the United States.

 

Each broker is required to submit to a due diligence process prior to working with us.   This process requires the broker to disclose regulatory infractions, criminal convictions, license revocations, states that have denied application for license, and whether the principals of the brokerage have been the subject of any regulatory complaints or investigations. Additionally, SSLLC obtains the right to perform criminal and background checks and may do so when certain fact patterns warrant an investigation.

All broker licenses are tracked and monitored by SSLLC’s compliance team using an extensive database system. The compliance team contacts brokers to request updated licenses as they renew.    Any regulatory infractions or revocations are noted in the database, and brokers are moved to the “Broker Hot List.” SSLLC’s management reviews the “Broker Hot List” to determine what course of action should be taken. 

As an additional control, the compliance team is notified of all upcoming offers to be made by the origination department. No offers are released until the compliance team has confirmed that a valid broker license is on file.




Key Company Dates:


12/98   Company Formation
 
11/99   Begin conversations with Bear Stearns
 
01/00   Engage Bear Stearns to locate financing
 
01/00   Hire O’Melveny & Myers, LLP as deal counsel
 
04/00   Contingency Policy with Lloyds bound
 
05/00   Engage S&P for portfolio advisory and rating
 
05/00   Engage Moody’s for portfolio advisory and rating
 
06/00   Closed on a $150MM financing facility with
              Dresdner Bank 
 
08/00   Hire USB as collateral agent and trustee
 
09/00   Signed Portfolio Services Agreement with AVS
 

10/00   Purchased 1st policy