Schwartzenegger Veto's Life Settlement regulatory

Thursday, October 02, 2008

California Gov. Arnold Schwarzenegger has vetoed a bill that would have created a regulatory framework for life settlements.

The bill, SB 1543, would have enacted the Life Settlement Consumer Protection Act.

Life settlements are transactions in which a policy owner sells the coverage to a third party.

The third party then pays the premiums and becomes the beneficiary of the policy.

According to the act, beneficiaries of trusts who owned an insurance policy but did't have an insurable interest in the person who was covered would be violating insurable interest laws.

Also, the bill would prohibit people from soliciting life settlements.....

--To read the rest of the article click HERE.