State lawmakers and regulators have spent years working on viatical and life settlement laws and regulations, but Nat Shapo says the rules still need work.
"Many jurisdictions either have no settlement law, or regulate viatical settlements but not life settlements, thus providing a haven for questionable practices," says Shapo, the new chief compliance officer at Coventry First L.L.C., Fort Washington, Pa.
Shapo served as Illinois director of insurance before going into private practice as a lawyer 2 years ago.
He says a life settlement deal with a sophisticated, older investor who has a life expectancy of 10 years is far different from a viatical arrangement with a young insured who is facing a good deal of time and financial pressure.
