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Coventry First Offers 21st Services $5 Million for Independent Verification That Its Life Expectancy Projections Are Accurate.

FORT WASHINGTON, Pa., Feb. 17 /PRNewswire/ -- Coventry First today announced that it will pay 21st Services, a provider of medical underwriting services, $5 million if it 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, contrary to allegations contained in a complaint filed by Coventry, its life expectancy estimates are statistically accurate, are "superior" to estimates provided by other underwriting firms, and are the "gold standard" in the life settlement industry. Through an Offer of Judgment served on 21st Services' attorneys today, Coventry commits to pay 21st Services $5 million if it obtains a certification from either of the nation's two leading actuarial firms, Milliman & Robertson 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.

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 are concerned that the methods employed by 21st Services are a key component of flawed investment structures promising unrealistic results. We believe that the investors who are relying on their projections will suffer significant losses, which will threaten the long-term viability of the secondary market for life insurance."

Mr. Buerger said that "if, in fact, 21st Services is the 'gold standard,' as it claims to be, then it should welcome Coventry's offer as an opportunity to publicly vindicate its practices and receive $5 million in the process. On the other hand, if they do not accept our Offer of Judgment, that will speak volumes about the legitimacy of their practices and the truth of their allegations against Coventry."

About Coventry First

Coventry First (http://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.
 CONTACT:
 Coventry First
 Kirstin Crouthamel
 877-836-8300
 info@coventryfirst.com



CONTACT: Kirstin Crouthamel of Coventry First, +1-877-836-8300, info@coventryfirst.com

Web site: http://www.coventryfirst.com/
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Publication:PR Newswire
Date:Feb 17, 2005
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