Existing law prohibits a person from entering into, brokering, or soliciting life settlements, as defined, unless that person is licensed by the Insurance Commissioner. The applicant for a license is required to provide any information the commissioner may require. This bill would delete the requirement that an applicant provide any information the commissioner may require, and provide that all application information be received in confidence, as provided, and not be subject to the Public Records Act. Existing law requires that a life settlement broker provide the owner of a life insurance policy and the insured with at least all of specified disclosures in writing, prior to the signing of the life settlement contract by all parties. The disclosures include, but are not limited to, all estimates of the life expectancy of the insured which are obtained by the licensee in connection with the life settlement, unless such disclosure would violate California or federal privacy laws. This bill would provide that the broker shall be required to provide the owner and the insured with only the specified disclosures, and would delete from the list of required disclosures the estimate of the life expectancy of the insured. Existing law authorizes the commissioner to adopt rules and regulations reasonably necessary to govern life settlement transactions. This bill would recast this provision to authorize the commissioner to adopt rules and regulations reasonably necessary to implement and enforce the express provisions of the act. Existing law prohibits these provisions relating to life settlements from doing certain things, including, but not limited to, limiting the powers granted elsewhere by the laws of this state to the commissioner or an insurance fraud unit to investigate and examine possible violations of law and to take appropriate action against the wrongdoer. This bill would clarify that the above-described prohibition is applicable to insurance law, and would prohibit these provisions, except as expressly provided, from establishing any authority for the commissioner to enforce any provision of any state securities law or any rule, order, or notice issued thereunder, or grant the authority for the commissioner to regulate the assignment, transfer, sale of a settled policy, or any other transaction involving a settled policy.
From Assembly without further action.
From committee without further action.
(Heard in committee on June 23.)
From committee: Do pass, but first be re-referred to Com. on APPR. (Ayes 12. Noes 0.) Re-referred to Com. on APPR.
To Com. on INS.
In Assembly. Read first time. Held at Desk.
Read third time. Passed. (Ayes 34. Noes 0. Page 3413.) To Assembly.
To Special Consent Calendar.
Read second time. To third reading.
From committee: Do pass. (Ayes 9. Noes 0. Page 3335.)
Set for hearing April 26.
From committee: Do pass, but first be re-referred to Com. on APPR. (Ayes 10. Noes 0.) Re-referred to Com. on APPR.
Set for hearing April 7.
To Com. on B., F. & I.
From print. May be acted upon on or after March 23.
Introduced. Read first time. To Com. on RLS. for assignment. To print.
|Bill Text Versions||Format|
|02/19/10 - Introduced|
|06/14/10 - Amended Assembly|
|No related documents.|
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