BILL ANALYSIS
SENATE COMMITTEE ON BANKING, FINANCE,
AND INSURANCE
Senator Ronald Calderon, Chair
SB 98 (Calderon) Hearing Date: April 15,
2009
As Amended April 1, 2009
Fiscal: Yes
Urgency: No
SUMMARY SB 98 requires any person transacting life settlements
to be licensed by the Department of Insurance and makes several
other conforming changes.
DIGEST This bill requires the licensing of persons who
transact life settlement contracts, makes it unlawful to issue
or market the purchase of a new life insurance policy for the
purpose of settling the policy, generally prohibits individuals
from entering into a life settlement during the initial two
years of a policy, authorizes the Insurance Commissioner to
disapprove life settlement forms, requires specified disclosures
to consumers including a notice of possible alternatives to life
settlements, regulates marketing practices, and prohibits
predatory practices such as false and misleading statements.
Existing Law
1. Defines a "viatical settlement contract" as an
agreement entered into between a person owning a life insurance
policy upon the life of a person with a catastrophic or
life-threatening illness or condition and another person by
which the policy owner receives compensation less than the death
benefits of the insurance policy in return for an assignment,
sale, or transfer of the death benefits or ownership of the
insurance policy, but does not include an assignment of a life
insurance policy to a licensed lending institution or credit
union as collateral for a loan.
2. Defines a "life settlement contract" as an
agreement, other than a viatical settlement contract, for the
SB 98, Page 2
purchase, sale, assignment, or transfer of the death benefit of
a life insurance policy for consideration that is less than the
expected death benefit of the life insurance policy.
3. Exempts life agents, licensed by the Insurance
Commissioner (Insurance Commissioner) to transact the sale of
viatical or life settlement contracts, from the requirement to
become certificated broker-dealers licensed by the
Commissioner of Corporations.
4. Defines "an insurable interest," with reference to
life and disability insurance, as an interest based upon a
reasonable expectation of pecuniary advantage through the
continued life, health or bodily safety of another person and
consequent loss by reason of that person's death or disability
or a substantial interest engendered by love and affection in
the case of individuals closely related by blood or law.
5. Specifies that an individual has an unlimited
insurable interest in his or her own life, health, and bodily
safety and may lawfully take out a policy of insurance on his or
her own life, health, or bodily safety and have the policy made
payable to whomsoever he or she pleases, regardless of whether
the beneficiary designated has an insurable interest.
6. Prohibits anyone from entering into or soliciting
viatical settlements unless the person has been licensed by the
Insurance Commissioner. An application for a license must be
accompanied by a fee of $2,833 and the applicant must provide
any information required by the Insurance Commissioner. The
annual renewal fee for these licenses is $177.
7. Prohibits a viatical settlements licensee from
using any viatical settlement form unless it has been approved
by the Insurance Commissioner. Any form filed with the
Insurance Commissioner by a licensee is deemed approved if it is
not disapproved within 60 days. The Insurance Commissioner must
disapprove a viatical settlement form if the Insurance
Commissioner finds the form is contrary to the interests of the
public or otherwise misleading or unfair to the consumer.
8. Requires viatical settlements licensees to
disclose to applicants, at the time of solicitation for the
viatical settlement, of possible alternatives to viatical
settlements for persons with catastrophic or life-threatening
illness, including accelerated benefits options that may be
SB 98, Page 3
offered by the life insurer; tax consequences that may result
from entering into a viatical settlement; and consequences for
interruption of public assistance as provided by
information provided by state agencies.
9. Authorizes the Insurance Commissioner to adopt
regulations reasonably necessary to govern viatical settlements
and transactions and requires the Insurance Commissioner to
adopt regulations to address conflicts of interest that may
arise.
10. Authorizes the Insurance Commissioner to examine
the business and affairs of any licensee or applicant for a
license. The Insurance Commissioner may issue orders to
licensees to ensure or obtain compliance with law, and may order
payment of a monetary payment not to exceed $10,000.
11. Prohibits any person licensed to sell or solicit
viatical settlements from engaging in any false or misleading
advertising, solicitation, or practice. A person who violates
this provision is subject to a fine of up to three times the
amount of the loss, by suspension of their license, and up to
one year imprisonment in the county jail.
12. Specifies that any person who enters into a
viatical settlement with a viatical settlements licensee has the
right to rescind the settlement within 15 days of execution of
the settlement.
This bill
1. Defines "life settlement contract" as a written
agreement between a "provider" and an owner of a life insurance
policy, establishing the terms of compensation. This
compensation is less than the expected death benefit of the
insurance policy, and is provided in return for the owner's sale
or bequest of the death benefit of the insurance policy,
provided that the minimum value for a life settlement contract
shall be greater than a cash surrender value or accelerated
death benefit available at the time of an application for a life
settlement contract. A "provider" is defined as a person who
enters into or effectuates a life settlement contract with an
owner of a life insurance policy, with certain exceptions.
(Generally, the provider is the person who is buying the
policy.)
SB 98, Page 4
2. Specifies that trusts and special purpose entities
that are used to initiate the issuance of policies of insurance
for investors, where one or more beneficiaries of those trusts
or entities do not have an insurable interest in the life of the
insured party, violate the insurable interest laws and the
prohibition against wagering on life.
3. Specifies that a "life settlement contract" also
includes a premium finance loan, under certain conditions, and
the transfer for compensation in a trust, under specified
conditions.
4. Specifies that a "life settlement contract" does
not include any of the following:
A. A policy loan by a life insurance company
pursuant to the terms of the life insurance policy
or accelerated death provisions contained in the
life insurance policy.
B. A premium finance loan or any loan made by a
bank or other licensed financial institution,
provided that neither default on the loan nor the
transfer of the policy in connection with the
default is pursuant to an agreement or understanding
with another person for the purpose of evading
regulation under this bill.
C. A collateral assignment of a life insurance
policy by an owner.
D. An agreement where all of the parties satisfy
one of the following conditions:
(1) They are closely related to
the insured by blood or law.
(2) They have a lawful
substantial economic interest in the continued life,
health, and bodily safety of the person insured.
(3) They are trusts established
primarily for the benefit of those parties.
SB 98, Page 5
E. Any designation or agreement by an insured who
is an employee of an employer in connection with the
purchase by the employer, or by a trust established
by the employer, of life insurance on the life of
the employee.
F. Bona fide business succession planning
arrangements that meet specified criteria.
G. Any other contract or arrangement from the
definition of "life settlement contract" that the
Insurance Commissioner determines is not of the type
intended to be regulated by this act.
5. Defines "stranger-originated life insurance
(STOLI)" as an act, practice, or arrangement to initiate the
issuance of a life insurance policy in this state for the
benefit of a third-party investor who, at the time of policy
origination, has no insurable interest, under the laws of this
state, in the life of the insured.
6. Specifies that STOLI practices include cases in
which life insurance is purchased with resources or guarantees
from or through a person or entity, that at the time of policy
inception, could not lawfully initiate the policy himself,
herself, or itself, and where at the time of inception, there is
an arrangement or agreement to directly or indirectly transfer
the ownership of the policy or the policy benefits to a third
party.
7. Defines "terminally ill" as having an illness or
sickness that can reasonably be expected to result in death in
24 months or less.
8. Repeals the provisions of existing law regarding
viatical settlements and, instead, establish a series of
requirements and authorities in connection with the transaction
of life settlements.
9. Prohibits persons from entering into, brokering, or
soliciting life settlements unless that person has been licensed
by the Insurance Commissioner. The person shall file an
application with information required by the Insurance
Commissioner, and accompanied by a fee set by the Insurance
Commissioner. The license fee for a provider license is not
SB 98, Page 6
specified in the bill but must be reasonable as determined by
the Insurance Commissioner. The license fee for a broker shall
not exceed the license fee established for an insurance producer
who is acting as life settlement broker. Each broker licensee
shall pay an annual renewal fee of $177.
10. Requires a person acting as a broker to complete
at least 15 hours of continuing education regarding life
settlements as required by the Insurance Commissioner, prior to
operating as a broker. This requirement does not apply to a
life insurance agent who has been licensed for at least one
year.
11. Specifies that a person licensed as an attorney,
certified public accountant, or financial planner, who is
retained to represent the owner, and whose compensation is not
paid by the provider or purchaser, may negotiate a life
settlement contract on behalf of the owner without having to
obtain a license as a broker.
12. Provides that a person licensed to act as a
viatical settlement broker or provider as of December 31, 2008,
shall be deemed qualified for licensure as a life settlement
broker or provider.
13. Specifies that the insurer that issued the policy
that is the subject of a life settlement contract shall not be
responsible for any act or omission of a broker or provider in
connection with the life settlement transaction, unless the
insurer receives compensation for the replacement of the life
settlement contract for the provider or broker.
14. Authorizes the Insurance Commissioner to suspend
or revoke a person's license to transact life settlements when,
after a hearing, the Insurance Commissioner concludes that it is
in the public interest.
15. Requires a life settlements licensee to file with
the Insurance Commissioner a copy of all life settlement forms,
and prohibits licensees from using any life settlement form
unless it has been provided in advance to the Insurance
Commissioner.
16. Authorizes the Insurance Commissioner to
disapprove a life settlement form if, in the Insurance
Commissioner's discretion, the form is contrary to the interests
SB 98, Page 7
of the public, or otherwise misleading or unfair to the
consumer.
17. Requires life settlement licensees to provide an
applicant for a life settlement contract a series of disclosures
in writing including that there are possible alternatives to
life settlements, including accelerated benefits options that
may be offered by the life insurer, and that proceeds of a life
settlement may be taxable and that assistance should be sought
from a professional tax advisor.
18. Requires the broker to provide the owner and the insured
a series of disclosures in writing prior to the signing of the
life settlement contract, including a complete description of
all of the offers, counteroffers, acceptances, and rejections
relating to the proposed life settlement contract, and a
disclosure of any affiliations or contractual arrangements
between the broker and any person making an offer in connection
with the proposed life settlement contract.
19. Allows insurance carriers to inquire in the
application for insurance whether the proposed owner intends to
pay premiums with the assistance of financing from a lender that
will use the policy as collateral to support the financing.
20. Specifies that if the loan provides funds for a
purpose other than paying for the premiums, costs, and expenses
associated with obtaining and maintaining the life insurance
policy and loan, the application may be rejected as a violation
of a prohibited practice under this bill. Otherwise, the
insurer may not reject the application solely because the
premiums will be financed, and the insurance carrier may make
disclosures to the applicant to be completed no later than the
delivery of the policy. The disclosure shall state:
"If you have entered into a loan arrangement where the
policy is used as collateral, and the policy changes
ownership at some point in the future in satisfaction of
the loan, the following may be true:
(1) A change of ownership could lead to a stranger
owning an interest in the insured's life.
(2) A change of ownership could in the future limit
your ability to purchase insurance on the insured's life."
SB 98, Page 8
21. Allows an insurance carrier to require the following
certifications from the applicant or the insured:
A. I have not entered into any agreement or arrangement
under which I have agreed to make a future sale of this
life insurance policy.
B. My loan arrangement for this policy provides funds
sufficient to pay for some or all of the premiums, costs,
and expenses associated with obtaining and maintaining my
life insurance policy, but I have not entered into any
agreement by which I am to receive consideration in
exchange for procuring this policy.
C. The borrower has an insurable interest in the
insured.
22. Requires life insurers to provide individual
policyholders with a statement informing them that if they are
considering making changes in the status of their policy, they
should consult with a licensed insurance or financial advisor.
23. Authorizes the Insurance Commissioner to adopt
rules and regulations reasonably necessary to govern life
settlements and transactions.
24. Authorizes the Insurance Commissioner to
investigate the conduct of any licensee, employees, agents or
other persons involved in the business of the licensee.
25. Requires licensed providers to file with the
Insurance Commissioner an annual statement that includes the
total number, aggregate face amount, and life settlement
proceeds of policies settled during the immediately preceding
year. This statement shall also include the names of the
insurance companies whose policies have been settled and the
brokers that have settled those policies.
26. Prohibits any licensed person from engaging in
false or misleading advertising, solicitation, or practice, as
specified. The penalties for a violation are a fine of up to
three times the amount of the loss, a license suspension, and up
to one year imprisonment in the county jail.
27. Allows any person who enters into a life
settlement with a life settlement licensee to rescind the
settlement within 30 days of the date it is executed, or 15 days
SB 98, Page 9
from receipt of the proceeds of the settlement, whichever is
sooner.
28. Requires a provider entering into a life
settlement contract with an owner of a policy, when the insured
is terminally ill, to first obtain the following:
A. If the owner is the insured, a written statement
from a licensed physician that the owner is of sound mind
and under no constraint or undue influence to enter into a
settlement contract.
B. A document in which the insured consents to the
release of his/her medical records.
29. Requires a provider to obtain a witnessed document
in which the owner consents to the settlement contract,
represents that the owner has a complete understanding of the
settlement contract and of the benefits of the policy, and for
persons with a terminal illness, acknowledges the terminal
illness was diagnosed after the policy was issued.
30. Prohibits a person from entering into a life
settlement during a two-year period commencing with the
date of issuance of the policy, except:
A. If the owner certifies to the provider that
the policy was issued upon the owner's exercise of conversion
rights arising out of a policy, provided the total of the time
covered under the conversion policy plus the time covered under
the policy is at least 24 months.
B. If the owner submits independent evidence to
the provider that any of the following conditions exist:
(1) The owner or insured is terminally ill.
(2) The owner or insured disposes of
his/her ownership interests in a closely held corporation,
pursuant to the terms a buyout in effect at the time the
insurance policy was initially issued.
(3) The owner's spouse dies.
(4) The owner divorces.
SB 98, Page 10
(5) The owner retires from full-time
employment.
(6) The owner becomes physically or
mentally disabled.
(7) The owner is bankrupt or insolvent.
31. Prohibits an insurer from engaging in any
transaction or act that restricts or impairs the lawful transfer
of ownership, change of beneficiary, or assignment of a policy.
Insurers would also be prohibited from making any false or
misleading statement for the purpose of dissuading an owner or
insured from a lawful life settlement contract.
32. Prohibits a person providing premium financing
from receiving proceeds, fees, or other consideration from the
policy or owner of the policy that are in addition to the
amounts required to pay principal, interest, and any reasonable
costs or expenses incurred by the lender or borrower in
connection with the premium finance agreement.
33. Makes it a fraudulent life settlement act and a
violation of law for any person to enter into a life settlement
contract if a person knows that the life insurance policy was
obtained by means of a false, deceptive, or misleading
application for the policy, or to issue, solicit, or market the
purchase of a new insurance policy for the purpose of settling
the policy.
34. Requires life settlement contracts and
applications for life settlement contracts to contain the
following statement:
"Any person who knowingly presents false
information in an application for insurance or for a life
settlement contract may be subject to criminal or civil
liability."
35. Allows a provider lawfully transacting business
prior to the effective date of this bill to continue to do so,
pending approval or disapproval of that person's application for
a license as long as the application is filed with the Insurance
Commissioner within 30 days after publication by the Insurance
Commissioner of an application form and instructions.
SB 98, Page 11
36. Allows a person who has lawfully acted as a broker
and negotiated life settlement contracts between any owner and
one or more providers for at least one year prior to the
effective date of this bill to continue to do so pending
approval or disapproval of that person's application for a
license, provided the application is filed within 30 days of
publication of the application form and instructions.
37. Authorizes the adoption of emergency regulations
by the Department of Insurance (CDI) and for these regulations
to remain in effect until repealed by that department.
38. Provides that this bill does not apply to life
settlement contracts entered into before July 1, 2010, with one
exception, and that the bill applies to transactions involving
life insurance policies in effect after the operative date of
this bill.
39. Expresses legislative findings and declarations
that there is a compelling interest in regulating the life
insurance industry to protect consumers, and that interest is
promoted by encouraging the life settlement industry to make
full and thorough disclosure of information to the Insurance
Commissioner by providing confidentiality for that information.
COMMENTS
1. Purpose of the bill The purpose of SB 98 is to
comprehensively establish a regulatory system governing life
settlement transactions in California, including provisions to
make illegal the practice of Stranger Originated Life Insurance
(STOLI) and to establish new measures to aid in detecting and
preventing STOLI transactions. The bill is patterned on SB 1543
(Machado) of the prior legislative session which was sent to the
Governor but vetoed last fall.
Background
The Senate Banking, Finance and Insurance Committee
held an informational hearing in February 2008 on the topic of
life settlement contracts. A life settlement is a financial
transaction in which an owner of a life insurance policy sells
the policy to a third party for more than the cash value offered
by the life insurance company. The purchaser becomes the new
beneficiary of the policy at maturity and is responsible for all
SB 98, Page 12
subsequent premium payments. Capital from hedge funds,
investment banks, pension funds, and other sources in search of
higher returns are flowing into the life settlement market.
Life settlements are a new market that is growing
rapidly. These settlements have grown from a few billion dollars
less than a decade ago to an estimated $13 billion in 2006, and
are expected to grow to an estimated $150 billion in the next
decade. However, life settlements are largely unregulated in
California. There are no licensing requirements or standards
for individuals acting as brokers or advising people in these
complex transactions.
Senior citizens are the primary market for life
settlements. This can include instances when seniors are
planning to surrender their life insurance or let it lapse.
According to marketing from the life settlement industry, other
reasons for seniors to sell their policies include the use of
the proceeds to purchase a new life insurance policy or a
long-term care contract, collect immediate cash, make a gift to
a family member, pay divorce costs, and obtain funds for other
investments.
Life Settlements. Life settlements can be highly
complex transactions and have great benefits, or serious
negative effects, for seniors involved. Several witnesses at
the Senate informational hearing testified that they were
presented with a two-inch thick stack of legal documents at the
closing of the settlement contract.
The life settlement market has grown out of the
viaticals market that developed in the 1980s in response to the
crisis. Viatical settlements involved the sale of life
insurance policies by persons facing a life expectancy of 24
months or less, for an amount less than the death benefit but
more than the cash surrender value, to pay for end-of-life care.
The desperate circumstances of the sellers raised the potential
for abuse, and the Legislature in 1990 enacted legislation to
regulate viatical sales. Anyone selling viatical settlements
must be licensed and must provide disclosures to the seller,
including possible alternatives to settlement, possible tax
consequences, and issues relating to the confidentiality of
medical information. The viatical market largely evaporated
after medical advances dramatically altered the life expectancy
of an AIDS diagnosis.
SB 98, Page 13
In 2001, a significant number of life settlement
providers started purchasing policies for their investment
portfolios using institutional capital. The arrival of
well-funded corporate entities transformed the settlement
concept into a wealth management tool, and began driving a rapid
market expansion. Both the National Association of Insurance
Commissioners (NAIC) and the National Conference of Insurance
Legislators (NCOIL) have produced model acts to regulate life
settlements. A primary difference between the two model acts is
that in the NAIC act, an owner would wait for five years after
purchasing a policy (with financed funds) before being able to
enter into a life settlement, while under the NCOIL act, the
policy owner may settle after two years. SB 1543 is largely
based on the NCOIL Model Act.
Non-Recourse Premium Financing. In non-recourse
premium financing, the insured person uses a loan to purchase a
life insurance policy and pay the premiums, and the policy is
the sole collateral for repayment of the loan. Although
normally the insured has an option to repay the loan at the end
of the two-year contestability period, some reports suggest that
some lenders have structured their programs to discourage loan
repayment through use of high exit fees and other costs, so that
at the end of the two-year contestability period the ownership
of the policy will be transferred to the lender in satisfaction
of the loan or sold to investors or a settlement company.
Alternatively, the policyholder may have been promised a
percentage of the net profits of the sale of the policy as an
inducement to take out the "free" insurance.
How to ensure that non-recourse premium financing is
available to individuals as a legitimate method to purchase
needed life insurance, while prohibiting the use of non-recourse
premium financing as part of a STOLI transaction, remains the
crux of the debate between the life insurance and life
settlement industries.
1.Arguments in Support. The Association of California Life and
Health Insurance Companies, which supports the bill, states that
this bill is necessary to curb predatory practices upon seniors
and other consumers known as "stranger-originated life
insurance," or STOLI. The need to curb STOLI transactions has
already been recognized by 10 or more states which have approved
legislation as strong as SB 1543, including Ohio, Indiana,
Connecticut, Oklahoma, Kansas, Maine, West Virginia, Iowa,
SB 98, Page 14
Nebraska, and North Dakota.
The Pacific Life Insurance Company states that, when abused, the
sales of life insurance on the secondary market can expose life
insurers and their reinsurers to a variety of risks. The
primary risk is that buying and selling of insurance policies on
the secondary market might be manipulated by a need to
circumvent the restrictions of insurable interest laws.
Establishing a framework where the purchase of life insurance is
influenced by a strong possibility or certainty that the policy
will placed in the secondary market, in a relatively short
period of time, violates the purpose of life insurance. Life
insurance is intended for individuals or businesses to provide
protection and benefits, not for unrelated third party
investors.
The National Association of Insurance and Financial Advisors of
California states that seniors are being hurt by STOLI
transactions because they often do not understand the short and
long-term consequences of these transactions. They are often
unaware that the income derived from the STOLI transaction is
generally taxable and that numerous fees and other expenses must
be paid. They may also be unaware that by entering into a STOLI
transaction, they could be affecting their available insurable
capacity.
The Life Insurance Settlement Association (LISA) states that
life settlements represent an important option for people who
choose to discontinue paying premiums on a policy that no longer
serves its original purpose, and allows them to receive payoffs
that can be significantly greater than surrendering a policy.
This association supports this bill and its regulation of the
life settlement market in which consumers have access to the
market and receive consumer protections. It states "SB 98
establishes a regulatory framework for the growing life
settlement industry in California. This bill will offer consumer
protections and appropriate regulation of an emerging industry
in California. This measure strengthens long-standing consumer
property rights in life insurance while ensuring that consumers
are aware of the issues facing them when exercising those
rights."
2. Arguments in Opposition. The California Life
Settlement Association (CALSA), which opposes the bill, states
that the bill's vague definition of STOLI would prohibit the
future use of premium financing. CALSA states allows the life
SB 98, Page 15
insurance industry to control the options available to
policyholders and to challenge virtually every transaction that
they dislike. This association is composed of numerous life
settlement providers and agents providing services for insured's
throughout the state.
This association also states that the bill indirectly prohibits
policy applicants from the long established practice of both
recourse and non-recourse premium financing which benefit
consumers. CALSA asserts that premium financing is an important
financial tool used by insured persons to purchase life
insurance for purposes such as financial planning, estate
planning, business transfers or any other lawful purpose.
CALSA also states that to the extent the cumulative provisions
of SB 98 preclude premium financing, the bill is anti-consumer
because it would eliminate the future use of this important
financing tool. Finally, CALSA asserts there has been no
demonstrated problem which has been shown to exist in California
nor why existing capabilities of life insurers to detect STOLI
transactions during review of a life insurance application are
not adequate.
Roycroft Funding, LLC, opposes the bill because it places a
two-year ban on the sale of policies which retracts existing
consumer protections for seniors and stifles competition within
the life settlement market. This reduction in competition would
cost California seniors hundreds of millions of dollars for the
benefit of a few large companies within the life settlement
industry. The firm also states that the bill would have the
unwanted effect of driving hundreds of millions of dollars in
tax revenues from the State of California and will lead to a
reduction in California and Estate Planning Business.
2. Prior Legislation Vetoed SB 1543 (Machado) was vetoed by the
Governor last fall. In his veto message, the Governor
stated:
I am returning Senate Bill 1543 without my signature.
This bill would enact the Life Settlement Consumer
Protection Act of
2008. Specifically, this bill would create a regulatory
framework
for life settlements in California. Life settlements are
complex
SB 98, Page 16
financial transactions in which a life insurance policy
owner
possessing an unneeded or unwanted life insurance policy
sells that
policy to a third party for more than the cash value
offered by the
life insurance company. Life settlements have grown
increasingly
popular in recent years, especially with older
Californians, raising
questions of whether adequate regulations are in place to
oversee the
industry. While life settlement companies are already
regulated by
the California Department of Financial Institutions,
proponents of
this measure believe the Department of Insurance should
play a
greater role in regulating these companies as well.
Although I share the proponents' goal to ensure that life
settlement
transactions are properly regulated, I cannot sign this
measure at
this time. The provisions of this bill were amended into
it very
late in the legislative session. While many of the
provisions were
agreed to by all the parties involved, some of the
provisions are
still subject to worthwhile debate. For instance, it is
my desire to
ensure that life settlement transactions contain proper
notification
and disclosure to consumers. I am also concerned that the
final
version of the bill may unfairly exclude some companies
from
participating in the legitimate life settlement market.
I am asking my staff to convene meetings this fall with
all the
stakeholders to review the provisions of this bill and
consider what,
if any, changes are needed to ensure that any regulatory
framework
SB 98, Page 17
put into statute appropriately protects seniors, provides
consumers
with adequate disclosure, and does not unfairly
discriminate against
legitimate companies trying to compete in the life
settlement
business. It is my belief that any outstanding issues can
be
resolved and we can quickly pass any necessary legislation
in 2009.
3. Questions
1. On page 34, line 30, a reference is made to
regulations adopted or amended by the "state board".
Should this be revised to refer to the Insurance
Commissioner?
4. Prior Legislation SB 1224 (Machado) and SB 1543 (Machado)
of the 2007-2008 Legislative Session.
POSITIONS
Support
American Council of Life Insurers
Association of California Life and Health Insurance Companies
Pacifica, LLC
Coventry First, LLC
Life Insurance Settlement Association
National Association of Insurance and Financial Advisors of
California
Support as Amended
Pacific Life Insurance Company
SB 98, Page 18
Oppose
California Life Settlement Association
Roycroft Funding LLC
ING
Consultant: Kenneth Cooley (916) 651-4772