Anyone transacting a life settlement in California will be required to notify the California Department of Insurance of the transaction within 10 days, according to new rules covering life settlement transactions.
Additionally, any agent who has been transacting life settlements for less than one year will need to complete a 15-hour life settlement training course prior to qualifying for a Life Settlement Broker license, according to the new rules. Agents who have been transacting life settlements for more than a year do not need to complete the coursework to obtain a two-year license, costing $136.
The rules, which take effect July 1, are a response to a new law, signed by Gov. Arnold Schwarzenegger on Oct. 11, 2009, repealing the state’s viatical settlement laws and instituting new life settlement laws.
In the last few years, state regulators in a number of states have been seeking tighter regulation on life settlement transactions, hoping their efforts will curtail transactions that take advantage of the elderly.
California regulators are creating a life settlement notification form for agents to use, according to a notice issued by the agency earlier this month. All notifications will be conducted using the state regulator’s website, according to the notice.
The Life Settlement Broker course is being developed by a curriculum board, appointed by California Insurance Commissioner Steve Poizner.
As part of the passage of SB 98, the commissioner was required to evaluate whether the life insurance agent’s examination met the requirements of the new law. The curriculum board evaluated and deemed it necessary to include several life settlement questions in the life insurance licensee examination. The inclusion of life settlement topics on the exam also is scheduled to begin July 1.
Source: Insurance and Financial Advisor, 4/28/2010 (IFAWebNews.com)