On October 11, 2009 Governor Schwarzenegger signed into law Senate Bill (SB) 98 (Calderon, Chapter 393, Statutes of 2009) Life Insurance: contract and viatical settlements. This bill repealed existing viatical settlement statutes and in its place created life settlement statutes now contained in Sections 10113.1 through 10113.3 of the California Insurance Code (CIC). In addition, the California Department of Insurance (CDI) implemented emergency regulations to further define the life settlement licensing process.
Specifically, beginning on July 2, 2010 individuals and business entities that are licensed as a life agent for at least one year are required to notify CDI within ten days from the first day of operating as a life settlement broker.
Also beginning on July 2, 2010 individuals and business entities that do not hold a life agent license or life agents who have been licensed for less than one year who intend to operate as a life settlement broker must first obtain a Life Settlement Broker license.