March 23, 2024
INVOICING PROCESS-CLARIFICATIONS
Like all forms of insurance, life settlements (which are life insurance policies) bear two fundamental characteristics: (1) a benefit payable under certain conditions (e.g., the death of the insured), coupled with (2) an obligation to pay premiums until that condition occurs. Therefore, the invoicing process is necessary to preserve the policies held by the series trusts in which investors hold fractional interest positions as beneficiaries.
Based on calls and emails received since the notice concerning the restarting of the invoicing process was sent, please note the following points of clarification concerning the invoicing process:
- The purpose of the email sent on March 4th was to notify all investors that the process of issuing invoices for pro rata premiums, fees, and expenses was being restarted. The email sent was NOT an invoice in and of itself, it was a notice.
- The invoicing process is currently proceeding on a policy-by-policy basis, which means a set of invoices will be issued to all fractional interest position holders in each series trust that owns a policy, and not for all policies at once. Therefore, if you are not a fractional interest position holder in a particular series trust that owns policy for which invoices are being issued, you will not receive an invoice. Also, if you hold more than one fractional interest position in different series trusts, and if you have amounts due for more than one such position, you will receive separate invoices for each series trust in which you hold a position.
- Each invoice and the fractional interest position to which it refers should be paid separately, and you may choose to pay or not pay any invoice for a position without affecting any other fractional interest position you hold. Not paying an invoice for a given position will not affect any other positions you hold until you decide to pay or not pay invoices for such other positions.
- The first round of invoices will reflect Amounts Due in Arrears (i.e., amounts past due) and any administrative fees, including servicing fees, necessary to support the policies owned by the series trusts. After invoices related to amounts past due are issued, the process of issuing invoices for amounts due in the future will begin.
- Invoices for amounts due in the future will be issued on a calendar quarter basis, but if the process begins after April 1, 2024 (which is likely), the first “regular” invoices will be pro-rated to June 30th, 2024. This means the first “full” invoices will likely be issued in June for the third quarter of 2024 (i.e., the period from July 1st to September 30th).
- You will only receive an invoice for a fractional interest position you hold. The first set of invoices will be issued only to those investors whose Reliant account is in arrears – meaning there is an outstanding, unpaid balance due.
- If you have not registered on the receivership website and provided your correct email address, you may miss notices, updates, and invoices. Therefore, it is imperative that you register at https://www.reliantreceivership.com/register .
- According to the agreements entered into by each investor to purchase one or more fractional interest positions as a beneficiary of one or more series trusts (i.e., sub-trusts) of the Reliant Life Shares Series Statutory Trust, the payment of pro rata premiums, fees, and expenses is a condition of the purchase. If the insured covered by a policy owned by a series trust lives longer than originally estimated by Reliant, additional pro rata premiums, fees, and expenses may become due and payable by all fractional interest position holders in that series trust.
- If an Investor believes an invoice is incorrect, for example they have documentation to show the amount due has already been paid, they may submit the proof of payment to the Receiver and an effort to resolve the discrepancy will be undertaken.
- IMPORTANT — Failure to pay the pro rata premiums, fees, and expenses due results in the forfeiture of the related fractional interest position and the loss of 100% of all monies paid for the fractional interest position, including the purchase price, previously paid premiums, fees, and expenses, and all other charges or costs associated with the position up to the point of forfeiture.
- IMPORTANT — Concerns that an invoice would be sent for a policy covering the life of an insured who has died are unfounded. The receivership is supervised by a court of law and the Receiver is an officer of the court. Therefore, if an invoice is issued, it means the insured is alive (as of the date of the invoice) and the policy is in place. Investors are free to choose not to pay any invoice and the consequences of that decision are clear and expressed in both the invoice, the instructions for payment included with each invoice, and the agreements between the Investor and Reliant (Also, see item 10 above).
Questions concerning this information should be directed to the Receiver by:
Email to:
Fax to:
Mail to:
receiver@reliantlifeshares.com
Christopher Conway, Receiver
Reliant Life Shares, LLC
2472 Jett Ferry Road, Suite 400-191
Atlanta, GA 30338