Notice Life Settlement Update
On October 11, 2009 Governor Schwarzenegger signed into law Senate Bill (SB) 98 (Calderon, Chapter 393, Statutes of 2009). The new law repealed the California Insurance Code's viatical settlement law, and replaced it with a new life settlement law. (See California Insurance Code, sections 10113.1 through 10113.3.) Under the terms of the new statute, life settlement brokers and providers will be required to obtain a license from the California Insurance Commissioner to transact life settlement business in California and will be subject to both licensing and consumer disclosure requirements.
The provisions of SB 98 apply to all life settlement transactions beginning on July 2, 2010. Furthermore, the Office of Administrative Law has approved the Commissioner's Life Settlement Emergency Regulations, with an effective date of July 29, 2010. The Department now has provider applications available, and providers currently transacting life settlement business in California have thirty days or until September 1, 2010 to submit a life settlement provider application to the Department, and may continue to transact life settlement business pending the Department's review of the application. To obtain a provider application go to Application for Life Settlement Provider. For instructions, please select the "Life Settlement Provider Requirements" link at the bottom of this page.
After September 1, 2010, providers may continue to apply for a California license, but are not free to transact California life settlement business until the Department first approves their application. For further guidance for life settlement brokers, please see the New California Life Settlement Law - Emergency Regulations Notice.
SB 98 and the Department's emergency regulations require all life settlement forms used in California to be filed with the Department. The Department now has available an online filing procedure though OASIS for providers to submit their filings at Welcome to OASIS. Life settlement brokers are to submit all life settlement forms by filling out the Life Settlement Form Filing Cover Sheet, Form 441-20C, along with a copy of the forms to the following e-mail address: LifeSettlementForms@insurance.ca.gov.
Additional information concerning the Life Settlement Provider and Broker applications, procedures, and requirements may be found on the following Web pages:
Life Settlement Provider Requirements
Life Settlement Broker Requirements
