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Insurable interest is one of the hottest issues in the Life Settlement industry right now, so much so that our President & CEO, Scott Page, presented an overview of the topic at the 13th Annual Life Insurance Settlement Association (LISA) Spring Conference in New York, New York just a few short weeks ago. The following is a summary of some of the more salient points which Scott Page addressed, to help give you useful background on this vital issue, both to the life settlement industry and life insurance industry in general.

First, insurable interest is basically the premise that:

• The owner and beneficiary of a life insurance policy is closely related to the insured person by blood or by law, or

• There exists a substantial interest based in love and affection between the insured and the owner and beneficiaries of the policy, or

• The owner and beneficiaries have a lawful, substantial economic interest in the continued life, health, and safety of the insured person.

Second, insurable interest needs to be demonstrated in order for a life insurance policy to be valid and must exist at the time of issue. While individual state definitions vary, a death benefit will not likely be paid under a life insurance policy if insurable interest cannot be demonstrated.

What makes this topic so timely and important is the increased presence of such vehicles as non-recourse premium finance-based life insurance transactions. These arrangements generally involve third parties, who through various mechanisms, "lend" or "fund" premium payments rather than the insured actually paying for the policy. In return, the lending source obtains a security interest (a collateral interest) in the insurance policy, which it most likely would exercise if the loan is not repaid, leading the lender to seek to sell the policy through the life settlement market in order to recoup the loan funds and to profit while doing so. Recent litigation, initiated by providers and based in large part on insurable interest, though, has called into question the legitimacy and legality of policies originating from arrangements like those.

For these reasons, among others, it is essential to understand the insurable interest laws in the states in which you do business and to keep a close eye on court cases involving issues like this. Doing so is one of the best ways to protect yourself, your clients and your business from potential problems that may arise from a lack of insurable interest.

Recently, The Lifeline Program^® extended its unique marketing partnership with acclaimed actress Betty White. Since 2005, Ms. White has played a prominent role in our efforts to educate life insurance professionals and others about the many benefits of Life Settlements. We are extremely honored and proud that this true American icon has agreed to continue working with us this way and believe it speaks volumes about the quality and respectability of our company and the work that we do.

We have recently set into motion a plan to produce a new directed marketing campaign featuring Ms. White, and have scheduled a photo shoot with her for early June 2007, in Los Angeles, California. We will provide more details to you about the launch date of these new initiatives when they become available.

Our exhibition at the 13th Annual Life Insurance Settlement Association (LISA) Spring Conference in New York was a great success, with extremely high attendance rates providing a sure sign that our industry continues to prosper and grow. There were many familiar faces at the conference, as well as a variety of new ones, creating excellent networking opportunities and numerous occasions to re-unite with old friends.

From an educational standpoint, several topics were on everyone's minds as life settlement providers, life settlement brokers and other life settlement industry participants alike collaborated to better understand and help shape the future of our industry. Presentations focused on insurable interest, transactional transparency, and investor-initiated life insurance were extremely popular while the issue of compensation disclosure continued to generate controversy and debate.

In addition to offering insights, our exhibition booth was well received and heavily visited, admittedly in part because we offered attendees the opportunity to win tickets to the acclaimed Broadway musical Wicked. Additionally, the two main characters from that show, Elphaba and Glinda, were present on the exhibit hall floor, entertaining and engaging attendees and drawing even greater interest both to Wicked and to The Lifeline Program^®.

To all of you who attended the conference and visited our booth, we thank you for your support and for your enthusiasm, and, of course, we hope to see you again next year!