On April 6, 2009, the Florida Office of Insurance Regulation (“FOIR”) issued a press release announcing that the U.S. District Court for the Northern District of Florida granted the FOIR’s motion to dismiss Coventry First LLC’s, a life settlement provider (“Coventry”), application for injunctive relief to prohibit the FOIR from examining its life settlement agreements with consumers outside of Florida.
The FOIR sought to review the Coventry’s business records from January 1, 2005 through December 31, 2007 in order to verify that:
- The Florida transactions reported by Coventry occurred in Florida;
- The non-Florida transactions reported by Coventry occurred outside of Florida;
- The ownership of life insurance policies was not changed to avoid Florida law; and
- Coventry had an anti-fraud plan in place.
The Court ruled that while Florida law does not apply to Coventry's out-of-state transactions, Coventry's business records, including those related to such transactions, are subject to review and examination by the FOIR by virtue of Coventry's Florida license. However, according to the Court’s Order, the FOIR has acknowledged that it has no intention of applying Florida law to Coventry's out-of-state transactions.