California Life Settlements
The California Life Settlement Act was initially signed in October 2009, and since then California has signed into action a few additional “emergency rules” for the business, which took effect in July 2010. The consumers of California are completely covered in settling their life insurance policies because improperly licensed or educated brokers cannot legally perform life settlements, according to the California Department of Insurance.
California life settlements, as well as in other states, have discontinued the use of a transaction called STOLI or Stranger-Owned Life Insurance due to these changes in the law.
If you are considering a California life settlement option, you will be asked to complete default forms, which serve the purpose to protect both you and your producer acting as a settlement broker – especially with the fluid exchange of personal information. These forms are structured to obey the laws as intended. You will be required to sign these documents in person to make them official. You will then receive further documentation about the broker’s continued activity from your life settlement provider.
California life settlements require the maintenance of all business transaction records. The recorded information includes but is not limited to the detailed actions of the broker in the life settlement market. All records must be made available for review, so you can be reassured that your transaction is safe.