NY AG, Coventry Settle On Life Insurance Buy-Outs

Law360, New York (October 3, 2009, 2:55 PM EDT) -- Life insurance settlement broker Coventry First LLC says it will pay $10.6 million to the state of New York — and another $1.4 million to consumers — to settle a suit from the state attorney general's office alleging deceptive business practices.

Then-Attorney General Eliot Spitzer sued Coventry, an affiliate of The Coventry Group Inc., in 2006, accusing the company of deceiving life insurance policyholders to buy their policies at lower than market value, according to the initial complaint in the New York Supreme Court.

The practice,...
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