Court Upheld Florida Regulator Probe of Viatical Firm
Florida regulators gained authority to audit a firm managing 5,000 policies to verify if they need an insurance license.
Updated on Oct. 1, 2026 in Insurance
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A Florida appeals court ruled that the state Department of Financial Services has the authority to subpoena records from Litai Assets. The ruling settles a dispute regarding whether the firm must provide information during an investigation into its licensing requirements.
Why it matters
The decision affirms the state's power to oversee companies that service life insurance policies. This ensures that firms operating in the insurance space are held to regulatory standards designed to protect the integrity of consumer financial products.
Litai Assets, which reports $5.6 million in 2026 revenue, manages more than 5,000 life insurance policies. The company held an insurance agency license in Florida between 2014 and 2022.
The players
Florida Department of Financial Services
The state agency responsible for overseeing insurance industry licensing and protecting consumers from unauthorized financial activity.
Litai Assets
A Pompano Beach-based firm that generates revenue by servicing more than 5,000 life insurance policies.
Chris Hallman
The operations officer at Litai Assets who previously denied state investigators access to company records.
The details
The dispute centers on whether Litai Assets must comply with investigations from the Department of Financial Services. While the firm argues it merely services existing policies rather than transacting insurance business, the court confirmed that regulators have the authority to compel the production of business records to verify compliance with state licensing laws.
Timeline
2009: Litai Assets began business operations.
2014: The firm obtained an insurance agency license.
2023: The Department of Financial Services initiated an investigation.
September 30, 2026: The 1st District Court of Appeals issued its ruling.
Money Landscape
The ruling reinforces the long-standing regulatory oversight framework established in 1997 to ensure market transparency in Florida. This action clarifies the limits firms can place on state inquiries regarding their business operations.
If you hold a life insurance policy serviced by a third-party firm, this decision ensures that state regulators have the power to verify that these companies remain in compliance with licensing laws. You should always confirm that any firm handling your policy is properly registered by contacting a qualified financial professional.
The takeaway
The court's decision confirms that Florida regulators possess the necessary oversight authority to audit companies servicing life insurance policies. Policyholders can track ongoing regulatory actions through the Florida Department of Financial Services website to ensure their providers remain in good standing.
Further reading
Learn more about how state regulations protect policyholders in Florida Insurance.
Source note: This article includes information reported by Insurance Journal.
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