06 Jun Premium Invoice FAQ

LPHI Trustee Website FAQ

LIFE PARTNERS, INC. BANKRUPTCY

Premium Invoice FAQ

April 21, 2016

 

  1. Why does my premium invoice show a past due balance when I have paid all the premiums for which I received an invoice?

The outstanding balance may be the result of:

  • premium amounts paid to the carrier for this policy for which you were never billed,
  • a negative balance on a policy that you purchased as an abandoned policy or resale policy (the balance existed at the time of your purchase of the interest), or
  • a premium invoice you did not pay.
  1. Why doesn’t this premium invoice include the name of the insured like previous ones?

There was a point in time when LPI did not use or assign policy IDs for a given policy, but used only last names of the insureds.  As privacy laws changed over time, LPI shifted to using only policy IDs.  Going forward, all policies will be identified by the policy ID only. Please log onto your account at www.lpi-policies.com to see your portfolio of policies with the corresponding policy IDs.

  1. Why is there no longer a premium mode listed but instead a date for which the coverage period ends?

LPI has changed the timeframes and methodology used for invoicing premiums in anticipation of an approved Plan.

  1. Why am I being asked to make my check payable to Life Partners now instead of PES?

Pursuant to an order of the US Bankruptcy Court, PES is no longer an escrow agent for LPI and LPI is handling those duties directly.

 

  1. My invoice has a line on it that says, “Less Current Balance in Escrow.” What is that referring to?

In certain cases, and for certain policies, investors still have positive balances in their escrow accounts.  When that is the case, you will see a line item on your invoice showing “Current Balance in Escrow.”  These are funds that remain available for the payment of premiums.

  1. I cannot pay the invoice in full, will LPI accept installment payments?

If you cannot pay the balance owed in full but want to pay in installments, you must submit detailed instructions as to what position the installment is to be applied.  In the memo line of your check, include the Funding ID and the Policy ID for which you would like LPI to apply your payment. Both the Funding ID and the Policy ID are listed on your invoice.

 

  1. If I don’t pay these past due amounts, what are the consequences for me under the Proposed Plan of the Trustee?

The Trustee, nor his team, can discuss the Plan with you at this time. However, the Trustee’s Disclosure Statement and Proposed Plan for exiting Chapter 11 are on file with the bankruptcy court (Docket #s 1452 and 1453) and available on the Epiq website at: http://dm.epiq11.com/LFP/Project#