FORT WASHINGTON, Pa., March 10 --PRNewswire-AsiaNet/InfoQuest
Coventry First today announced that it has increased its offer to 21st
Services, a provider of medical underwriting services, from $5 million to $10
million if 21st Services can provide independent verification that its
underwriting over the last six years was accurate. 21st Services had asserted
in response to a lawsuit filed by Coventry that its life expectancy estimates
are statistically accurate, are "superior" to estimates provided by their
competitors, and that 21st Services is the "gold standard" in the life
settlement industry.
In February, Coventry made an initial offer to pay 21st Services
$5 million if it could obtain a certification from either of the nation's two
leading actuarial firms, Milliman USA or Tillinghast, stating that for all of
the insured individuals reviewed by 21st Services during the period from March
1, 1998 through December 31, 2004, the ratio of actual deaths to expected
deaths was at least 80 percent. Today, Coventry has doubled its prior offer in
an effort to encourage 21st Services to step up and demonstrate it is, in fact,
the "gold standard."
In November 2004, Coventry filed suit against 21st Services in federal
district court alleging that 21st Services was providing life expectancy
projections that routinely and consistently understate the true life expectancy
of the insured, in violation of Pennsylvania's Settlement Act. Alan H.
Buerger, CEO of Coventry, said at that time, "We believe that the investors who
are relying on 21st Services' projections will suffer significant losses, which
will threaten the long-term viability of the secondary market for life
insurance."
"If 21st is unable to provide the certification," Mr. Buerger said, "we
sincerely hope they will correct the problem, so investors have more accurate
projections of future performance."
About Coventry First
Coventry First (http://www.coventryfirst.com) bridges insurance and capital
markets to create groundbreaking products for the financial services industry.
The company is the leader in the secondary market for life insurance and
pioneered the resulting life settlement industry. Fueled by bold ideas, a deep
understanding of life insurance, and impeccable standards, Coventry First
continues to lead the market by opening new opportunities for consumers and the
financial professionals who serve them. Based in Fort Washington, PA, Coventry
First has received Standard & Poor's highest Servicer ranking, the only firm in
the secondary market for life insurance to be ranked, and was named the
nation's 10th fastest-growing privately held company in the annual INC. 500
listing.
CONTACT: Kirstin Crouthamel,
Coventry First,
+1-877-836-8300,
[email protected]
SOURCE: Coventry First
Web site: http://www.coventryfirst.com
--Distributed by AsiaNet (www.asianetnews.net)--