LIVING BENEFITS^® Portfolio Management

Servicing Life Insurance Policies

We represent institutional investors in a sub-advisory, fiduciary capacity in managing life insurance portfolios. Through experienced service professionals, Living Benefits Asset Management, LLC ("LBAM") provides the hands-on servicing necessary to manage all aspects of each underlying policy within a life settlement portfolio to maximize returns.

Methodology

The initial step in the life insurance portfolio management process is to understand our client's investment objectives and risk tolerance levels. We work with the portfolio owner to establish analytical benchmark assumptions per policy, including but not limited to, premium frequency, account value thresholds, and exit strategy. Our servicing team with over 20 years of experience in the life insurance industry reviews the life insurance contract for each serviced policy to determine underlying internal policy cost factors and lapse triggers according to policy terms. Then we project the optimum premium payment stream for each policy to maximize portfolio returns based on the benchmark assumptions.

On an on going basis we monitor premium streams of each policy based on account and surrender values from the policy statements and we determine whether changes are necessary and report recommendations to portfolio owners.

Mortality Tracking and Claim Processing

LBAM conducts bi-weekly mortality searches accessing multiple databases and utilizing other tracking services. Portfolio owners are notified immediately of the results. During 2010 we have averaged less than 10 days from the maturity date to the date of notification to our clients.

Upon receipt of maturity notification LBAM initiates the death claim submission by obtaining death claims forms from the insurance company. We also request certified death certificates from the appropriate governmental authority. Finally, we submit the claim package with the death certificate to the insurance company. LBAM tracks the progress of death benefit claim until the death benefit proceeds are received and deposited.

Due Diligence and Trading

LBAM provides analytic and due diligence services to buyers and sellers of life insurance policies held in portfolios under common ownership. Using a suite of proprietary life insurance analysis tools, the company assesses a portfolio in terms of financial values. Subsequently, we project appropriate cash flows and future secondary market valuations to create a risk/return scenario for prospective purchasers of portfolios of life insurance policies.

Our clients have used our analytic services to solidify trades, and in some instances to provide data to lenders as part of a loan collaterization, using a portfolio of life insurance policies to support a project.

The company's portfolio analysis and acquisition process follows a thorough due diligence methodology. When a client engages LBAM in a portfolio trade, LBAM generally manages the portfolio on a going forward basis once the trade is complete.

LIVINGSTAR^SM Platform

LBAM designed and implemented proprietary software for portfolio management and servicing. The LIVINGSTAR^SM Platform is a secure, password protected servicing platform that provides portfolio owners transparent web access to their portfolio of policies and transfers sensitive supporting documents.