INDUSTRY SUMMARY

The industry defines a life settlement as the purchase of an in-force life insurance policy insuring an individual who does not suffer from any life-threatening condition, purchased prior to maturity (death of insured) at a discount of the policy￿s net death benefit. The marker for life settlements is based on the proposition that the policy owner generally does not have a need for the death benefit the insurance policy provides. The protection is no longer a component of the insured￿s current and future financial planning requirements prompting the sale of the policy to recoup some of the money that has been paid in premiums over the years, to avoid future premiums and to eliminate the uncertainty as to timing of collection of the policy benefits.

The market for senior settlement securitizations has significant growth potential. According to On Wall Street magazine (September 2000), the market was just $50 million in 1990 with the current market estimated in excess of $134 billion. Additionally, according to Asset Finance International (September 2000), Goldman Sachs, Lehman Brothers, DLJ, First Union, JP Morgan, GE Capital and Paine Webber are known to advise their clients of senior life settlement transactions as a financial planning strategy. As this type of transaction becomes more common, the opportunity for additional business will increase commensurate with institutional investors￿ increased appetite for this asset class.

According to a June 2005 Bernstein Research report, the life settlement market has grown from zero in the mid—1990s to around $13 billion today and will continue to grow to $160 billion over the next several years.