Another South Florida viatical company, American Benefits Services, currently is being investigated by insurance officials, along with other state and federal agencies, to determine whether it helped sell tens of millions of dollars of viatical settlements backed by nonexistent life insurance policies. The insurance department began looking into American Benefits and its activities with another company, Financial Federated Title and Trust Inc., late last year. Legitimate viatical deals first came into existence in the 1980s, as the number of AIDS cases increased. By selling a policy for a percentage of its face value, the insured can get cash for medical expenses, travel, investments or gifts to the children now rather than later. The tradeoff is giving up a bigger payoff at death for one's beneficiaries.
Investors make money unless the original insured's death comes significantly later than anticipated.
But if the patient lives two years, the return falls to about 33 percent. In his order on Accelerated Benefits, Nelson said the company originally was given a license on October 31, 1997. Diverse World Enterprises Inc. Corporate records there reflect that C. Keith LaMonda is president, secretary, treasurer and sole director of Diverse World Enterprises.