Demands transparency regarding the correct specification of life expectancy
After the upcoming closure of Lapetus, the cancellation of any claims to protect business secrets is required
Coventry First LLC (“Coventry”), market leader in the area of life insurance handling, submitted a legal answer this week, in which it turns against the attempt by Lapetus Solutions, Inc. (“Lapetus”) to prevent the disclosure of legally prescribed reports to review life expectancy. The submission underlines Coventry’s long -represented view that the integrity of the life insurance market requires transparency regarding the accuracy of life expectations. At the same time, Coventry submitted his own application for a summary judgment and argued that the closure announced by Lapetus for August 31, 2025 should exclude any claim to protection of business secrets.
The Law of the State of Florida stipulates that providers of life maintenance forecasts every three years have to submit an examination report on life expectancy for the five calendar years before each exam at the Office for Insurance Supervision (Office of Insurance Regulation, OIR) of the State of Florida. Since these reports measure the accuracy of earlier predictions and do not contain proprietary methods for creating such predictions, Coventry argues that they are not entitled to protection as a business secret. In addition, Lapetus himself has repeatedly pointed out his alleged “accuracy” in marketing materials, public explanations and direct communication with Coventry. For these reasons, Coventry believes that a decision in favor of Lapetus is inappropriate and should be rejected.
“Both investors and supervisory authorities must be able to trust that the estimates for life expectancy are precisely, reliable and compliant with the insurance mathematical standards,” said Alan H. Buerger, managing chairman of Coventry. “Transparency protects investors and the integrity of the entire life insurance market. As the founder of the secondary market for life insurance, we continue to work for consumers’ rights and are actively committed to strict industry regulations, as our reaction to the demand of Lapetus shows.”
The impending closure of Lapetus should make claims due to business secrets
In an email dated August 18, 2025, Dr. S. Jay Olhansky, managing director, co -founder and chief scientist of Lapetus that the company “will close all business areas on August 31”. After this date, Coventry argues, the test results would no longer correspond to the legal definition of business secrets, since they would no longer be used “in the context of business” or to obtain competitive advantages.
Accordingly, Coventry claims to be entitled to a summary judgment that prescribes the disclosure of the examination results.
The importance of more precise life maintenance values
It is more at stake than this legal dispute. Life expectancy is the linchpin of the evaluation of life insurance. If estimates are too low, the resulting distortions could mislead investors, cause significant losses and undermine trust in the market. As Alan H. Buerger, managing chairman of Coventry, explained to support the application, independent scientific studies show that Lapetus’ life expectations in more than 80 % of the cases tested were lower compared to competitors, with a ratio of the expected values of only 31 %, which is far below the accuracy rate of 96.3 % specified by lapetus.
The supervisory authorities in Florida already recognized this danger after the $ 800 million fraud of Mutual Benefits, in which the chronically low life expectation values justified one of the largest snowball systems in the history of the state. Due to the mutual advantages, the legislator has prescribed that providers of life insurance companies are registered with the OIR and regularly have to submit exams reports.
Information about Coventry
Coventry is the market leader and founder of the secondary market for life insurance. We have been driving the industry ahead for more than 20 years and expanding the possibilities for owners of life insurance policies. Coventry’s comprehensive experience in connection with a strong commitment to consumer rights makes Coventry a clear market leader. We use this position to raise the industry standards and expand the options for consumers. To date, we have paid over six billion US dollars to policyholders who no longer need their policies. To learn more about Coventry, please visit Coventry.com.
ProSek partners for Coventry
Andrew Merrill / Kiki Tarkhan
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