Coventry First

March 10, 2005 11:17 ET

Coventry First Increases Offer to 21st Services to $10 Million for Independent Verification That Its Life Expectancy Projections Are Accurate


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: COVENTRY FIRST

MARCH 10, 2005 - 11:17 ET

Coventry First Increases Offer to 21st Services to $10
Million for Independent Verification That Its Life
Expectancy Projections Are Accurate

FORT WASHINGTON, Pa.--(CCNMatthews - Mar 10, 2005) -

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 (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.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Coventry First
    Kirstin Crouthamel, 877-836-8300
    email: info@coventryfirst.com