Florida Court Upheld Investigation Into Viatical Firm
The 1st District Court of Appeals enforced a subpoena for Litai Assets to produce records for state financial regulators.
Updated on Oct. 1, 2026 in Insurance
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A Florida appeals court has ruled that the state Department of Financial Services holds the authority to investigate Pompano Beach-based firm Litai Assets. The decision effectively enforces a subpoena for the company to surrender business records as part of an ongoing probe into its licensing status.
Why it matters
State regulators are investigating whether Litai Assets has been operating without a valid insurance license while servicing thousands of policies. The court ruling clarifies the department's statutory reach when determining if a firm is transacting insurance business in the state.
Litai Assets reported $5.6 million in revenue for 2026 and currently manages a portfolio exceeding 5,000 life insurance policies. The firm held an active insurance agency license in the state from 2014 until 2022.
The players
Florida Department of Financial Services
This state agency is responsible for regulating insurance companies and investigating potential violations of Florida statutes.
Litai Assets
Headquartered in Pompano Beach, this company manages a large portfolio of viatical settlement policies.
Chris Hallman
He serves as the operations officer for Litai Assets and was involved in the 2023 interaction with state investigators.
The details
The investigation began after Litai operations officer Chris Hallman reportedly ordered state investigators to leave the company office in 2023. While the firm contends it does not transact insurance business and only services existing viatical policies, the court has now cleared the way for the Department of Financial Services to review its internal records.
Timeline
Litai Assets began business operations in 2009.
The firm obtained an insurance agency license in 2014.
The Department of Financial Services began investigating the firm and served a subpoena in 2023.
A trial court judge in Tallahassee enforced the subpoena in 2025.
The 1st District Court of Appeals issued its ruling on September 30, 2026.
Market Dynamics
The ruling affirms the broad regulatory reach of the Department of Financial Services under Florida statutes, setting a clear precedent for how state oversight intersects with firms that claim to service rather than transact insurance. This decision signals a more aggressive enforcement environment for non-traditional financial entities operating within the state.
Consumers involved in viatical settlements should verify that the companies servicing their policies hold valid state licenses. This court decision underscores the importance of regulatory oversight in protecting stakeholders against entities that may be operating outside the scope of insurance law.
The takeaway
This case serves as a reminder that state regulators maintain significant authority to compel cooperation from private firms regarding their business activities. Policyholders should remain vigilant and confirm the licensing credentials of any firm managing their life insurance agreements.
Further reading
For more background on state oversight, see the Insurance section.
Source note: This article includes information reported by Insurance Journal.
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