California’s Governor signed one of the strongest laws in the nation to regulate life settlements, ensuring that California’s life insurance policyowners are able to obtain the best value for life insurance policies that are likely to be lapsed or surrendered.
The new California life settlement act preserves the long-standing right of life insurance policyowners to sell their policies when they no longer can afford or otherwise keep them. Senator Ron Calderon (D-Montebello-Senate District 30) touted the new law as “a valuable measure to support fair and equitable marketing of life insurance policies which constitute a valuable liquid asset for seniors.” The law establishes strong consumer protections, including licensing of settlement companies and brokers, strong consumer disclosures and measures to detect and prevent the illegal manufacturing of new life insurance policies by strangers.
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.
California becomes the 37th state to adopt life settlement regulation.
More info: California Passes Life Settlement Law
Source: Press
