Deposits on Purchases of Life Settlements

6 Months Ended

Jun. 30, 2011

Deposits On Purchases Of Life Settlements

Deposits on Purchases of Life Settlements

(6)   Deposits on Purchases of Life Settlements

Deposits on purchases of life settlements is comprised of $4.0 million the Company paid to purchase seven life insurance policies pursuant to life settlement contracts entered into during the three months ended June 30, 2011. In accordance with certain state laws, the contracts contain specified rescission periods which expire in July 2011. Upon expiration of the individual rescission periods, the Company will reclassify the amount paid to acquire the policies to investments in life settlements and will record the policies at their estimated fair value in the consolidated and combined balance sheet in accordance with ASC 860 Transfers and Servicing.