companies like coventry buy insurance policies and sell them to investors. i asked coventry c.e.o. alan buerger about his business at a conference this spring. >> it's a simple concept, someone has a life insurance policy, it's a million dollar policy, it has $40,000 cash, they can get $40,000 from the insurance company or from a life settlement company they can get $80 or $100 or $200, that's very simple. >> reporter: a simple concept that's loosely regulated. the g.a.o. reports 12 states and the district of columbia have no laws or regulations for life settlements, and there's little uniformity in states that do have rules. frank keating of the american council of life insurers worries about life settlements, and what's called "stranger originated life insurance," or "stoli." that's when policies are taken out only to resell to investors. >> this is a system that corrupts life insurance, wrecks the white-hat image and the reality of the industry, and encourages people to buy a policy for short-term gain, but for long-term loss. you know, die as quickly as possible, you have a gro