Secondary Life Capital, LLC (”SLC”) announced today that the State of PENNSYLVANIA has granted SLC its life settlement provider license. In addition to Pennsylvania, SLC has recently been awarded a life settlement provider license in NEVADA and KANSAS. Founded in 2003, the Washington DC based firm is a leading provider of life settlements and life settlement portfolios to institutional investors worldwide.

This is good news for the industry. As we have been reading that companies and life settlement providers have been complaining about states restricting licenses and requiring many different requirements for each state that make obtaining a license tideous and costly.

SLC is known within the industry for its strong support of responsible and balanced life settlement regulation. SLC has been at the forefront in cooperating with LISA, NCOIL and the NAIC to develop and promote suitable legislation ensuring the long-term health and growth of the life settlement market, as well as promoting the rights of insured consumers.

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SB 1224 enacts the Life Settlement Consumer Protection Act of 2008 in the State of California which does the following:

1) Prohibits STOLIs in California by providing that beneficiaries that do not have an insurable interest in the life of the insured violate existing insurable interest laws.  STOLI is defined as “an act, practice, or arrangement to initiate the issuance of a life insurance policy in this state for the benefit of a third-party investor who, at the time of the policy origination, has no insurable interest in the life of the insured.” Additionally, there must be an arrangement or agreement to directly or indirectly transfer the ownership of the policy to a third party.

2) Revises the license requirement for a life agent licensed by the Department of Insurance (DOI).  Existing life agents must notify the Department within 10 days if they intend to participate in life settlement contracts.

3) Requires other persons who are not currently licensed as brokers, agents or providers to apply for a certificate as a securities broker-dealer in order to engage as an agent of an issuer of viatical or life settlement securities.

4) Requires life settlement brokers and providers to provide specified disclosures to life insurance policy owners at the time of application for a life settlement, and at the signing of the contract.

5) Requires the Insurance Commissioner to review the examination for the licensing of life insurance agents and recommend any changes to the examination to the department’s curriculum committee.

6) Requires brokers and producers to complete at least 15 hours of continuing education related to life settlements and life settlement transactions.

SB 1224 will not apply to any life settlement contract entered into on or before December 31, 2008.

Life Settlements are a rapidly growing product in the life insurance and financial planning industry. As the popularity continues to grow more states are requiring specific licensing and license requirements. We will research and provide this information to our visitors.

It is also important for agents and professionals to understand what states the life settlement providers and life settlement brokers that utilize are licensed to conduct business in.

We will also be updating often with news and releases of additional life settlement industry information.

Keep checking back!