Which of the following does NOT involve a life settlement transaction?

The option that does not involve a life settlement transaction is converting term life coverage to whole life insurance. Life settlement transactions specifically pertain to the sale of an existing life insurance policy by the policyholder to a third party for a lump sum payment. The focus of life settlement transactions is on the contractual agreements related to the sale of these policies and the ongoing management of those agreements.

In contrast, converting term life insurance to whole life insurance is a process that pertains to the policyholder's options regarding their own policy. It involves changing the type of insurance rather than participating in a transaction that transfers ownership of the policy to another individual or entity. This conversion does not engage with the principles of life settlements, as it doesn't involve selling or transferring the life insurance policy for a financial benefit.

This distinction is essential for understanding the nuances of life insurance transactions and the specific activities that pertain to life settlements.