Governor Schwarzenegger-Life Settlement Legislation

On October 11 Governor Schwarzenegger signed into law a bill that will bring full regulation of life settlements to the State of California. Historically, California has been one of the most active states for viatical settlement transactions in cases of terminally or chronic illness. This act however has broadened the definition of "viatical" settlements to life settlements and has provided further definition of insurable interest.

In response to the signing of this bill, The Life Insurance Settlement Association (LISA)made the following comment: The signing of Senate Bill 98 brings the protections of law to an important and populous state and augments the regulation of settlements to include those persons who are not terminally ill. "We worked hard to ensure that this bill contained the right protections for consumers and ensured them the full access to this market that they deserve. Because this bill has the support of so many varied interested parties, it is an excellent model of good regulation for this growing and important consumer service," explained Russel Dorsett, LISA President.


(http://www.earthtimes.org/articles/show/the-life-insurance-settlement-association,995956.shtml)

Additional praise of the bill came from Coventry First, who made the following statement: "Significantly, the new law ensures that California`s citizens can pursue a life settlement with the assistance from their life insurance agent. With the passage of the legislation, life insurance companies are no longer allowed to gag life agents who would tell their clients about life settlements or otherwise act to
harm consumers in life settlement transactions".

(http://www.reuters.com/article/pressRelease/idUS157586+12-Oct-2009+BW20091012)

All in all, this was a "win" for the Life Settlement industry, and more importantly, for life insurance policy owners.

Quote of the Day: Nothing astonishes men so much as common sense and plain dealing.
Ralph Waldo Emerson (1803 - 1882)

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