California 2009-2010 Regular Session Status: To Executive

SB 98 — Life insurance: contracts and viatical settlements.

Last action — Chaptered by Secretary of State. Chapter 343, Statutes of 2009.

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Senate
  4. ✓
    Passed Assembly
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2009-2010 Regular Session. It reached “To Executive” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

Existing law establishes when an interest, with respect to life and disability insurance, is insurable. This bill would provide that trusts and special purpose entities, as specified, where one or more beneficiaries of these trusts or special purpose entities do not have an insurable interest in the life of the insured, violate the insurable interest laws and the prohibition against wagering on life. The bill would also provide that any device, scheme, or artifice designed to give the appearance of an insurable interest, where there is no insurable interest, violates the insurable interest laws. Existing law defines "viatical settlement," as specified, and requires life and disability agents, among others, to file a declaration with the Insurance Commissioner that their agent license is valid and in good standing in order to engage in the business of viatical settlements. The commissioner may suspend the agent's ability to transact viatical settlements if this requirement is not complied with. A person who enters into or solicits a viatical settlement without a license, or a licensee who fails to comply with certain requirements, is guilty of a misdemeanor. This bill would repeal these provisions, and would instead revise and recast the law relating to viatical settlements to define those and other specified financial arrangements as "life settlements," as defined. The bill would prohibit a person from entering into, brokering, or soliciting life settlements unless that person holds a license, issued by the commissioner, to so act. The bill would specify the requirements to obtain a life settlement license, and would specify, among other things, disclosure requirements that must be complied with at the time of the solicitation of the life settlement contract. The bill would also provide that the insurance carrier may require a specified certification from the applicant. The bill would contain various other regulatory provisions relating to life settlement contracts, including provisions relating to the confidentiality of the insured's medical and financial information, and of the annual statements of life settlement licensees, as specified. This bill would also provide that applicable license fees shall be established by the commissioner. Because a violation of any of these provisions would be a misdemeanor, the bill would define new crimes and thereby impose a state-mandated local program. This bill would provide that the adoption or amendment of any regulation required by specific provisions shall take effect when filed with the Office of Administrative Law, as specified. This bill would provide that, with certain exceptions, it shall not apply to any life settlement contract entered into on or before July 1, 2010. This bill would provide that it would apply to any transaction involving any life insurance policy in effect, or entered into, on or after the operative date of the bill. This bill would make legislative findings and declarations relating to the need for confidentiality of specified information. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.

Bill Text

Action History

  1. Chaptered by Secretary of State. Chapter 343, Statutes of 2009.

  2. Approved by Governor.

  3. Enrolled. To Governor at 10:30 a.m.

  4. Senate concurs in Assembly amendments. (Ayes 40. Noes 0. Page 2285.) To enrollment.

  5. In Senate. To unfinished business.

  6. Read third time. Passed. (Ayes 72. Noes 1. Page 2921.) To Senate.

  7. Read second time. To third reading.

  8. (Received by Desk on August 28 pursuant to Joint Rule 61(a)(11).)

  9. (Heard in committee on August 27.)

  10. From committee: Do pass. (Ayes 16. Noes 0.)

  11. Set, first hearing. Referred to APPR. suspense file.

  12. Hearing postponed by committee.

  13. Read second time. Amended. Re-referred to Com. on APPR.

  14. (Heard in committee on June 25.)

  15. From committee: Do pass as amended, but first amend, and re-refer to Com. on APPR. (Ayes 10. Noes 0.)

  16. From committee with author's amendments. Read second time. Amended. Re-referred to Com. on INS.

  17. To Com. on INS.

  18. In Assembly. Read first time. Held at Desk.

  19. Read third time. Passed. (Ayes 37. Noes 1. Page 1142.) To Assembly.

  20. Read second time. Amended. To third reading.

  21. From committee: Do pass as amended. (Ayes 12. Noes 0. Page 1067.)

  22. (Suspense - for vote only.)

  23. Set for hearing May 28.

  24. Placed on APPR suspense file.

  25. Set for hearing May 4.

  26. Hearing postponed by committee.

  27. Set for hearing April 27.

  28. Read second time. Amended. Re-referred to Com. on APPR.

  29. From committee: Do pass as amended, but first amend, and re-refer to Com. on APPR. (Ayes 10. Noes 0. Page 555.)

  30. From committee with author's amendments. Read second time. Amended. Re-referred to Com. on B., F. & I.

  31. Set for hearing April 15.

  32. To Com. on B., F. & I.

  33. From print. May be acted upon on or after February 26.

  34. Introduced. Read first time. To Com. on RLS. for assignment. To print.

Sponsors

  • Calderon · Primary

Sponsorship breakdown

Export CSV (upgrade) →

1 sponsors · 0 co-sponsors · 121 not signed on

Sponsors (1)

  • Calderon

Co-sponsors (0)

None.

Not signed on (121)

121 members have not signed on to this bill.

Show all 121 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Unfinished Business SB98 Calderon

Passed 41 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 38000
Democratic 2000
Republican 1000
Total 41000
% of votes cast 100%0%0%0%
How each member voted (41)
Member Party Vote
Yee — Yea
Cogdill — Yea
Hancock — Yea
Ducheny — Yea
Dutton — Yea
Harman — Yea
Huff — Yea
Kehoe — Yea
Liu — Yea
Maldonado — Yea
McLeod — Yea
Lowenthal — Yea
Negrete — Yea
Runner — Yea
Ashburn — Yea
Benoit — Yea
Pavley — Yea
Romero — Yea
Simitian — Yea
Steinberg — Yea
Wiggins — Yea
Wolk — Yea
Wyland — Yea
Aanestad — Yea
Alquist — Yea
Hollingsworth — Yea
Leno — Yea
Oropeza — Yea
Price — Yea
Walters — Yea
Wright — Yea
Cedillo — Yea
Corbett — Yea
Correa — Yea
Cox — Yea
DeSaulnier — Yea
Denham — Yea
Florez — Yea
Calderon, Lisa Democratic Yea
Padilla, Stephen C. Democratic Yea
Strickland, Tony Republican Yea

Official roll call →

SB 98 Calderon Senate Third Reading By COTO

Passed 82 Yea · 1 Nay · 8 Other
Party YeaNayPresentNot Voting
Unaffiliated 76108
Democratic 3000
Republican 3000
Total 82108
% of votes cast 90%1%0%9%
How each member voted (91)
Member Party Vote
Carter — Yea
Evans — Yea
Feuer — Yea
Fuentes — Yea
Fuller — Yea
Chesbro — Yea
Conway — Yea
Bill — Yea
Tom — Yea
Charles — Yea
De — Yea
La — Yea
Torre — Yea
De — Yea
Leon — Yea
Fletcher — Yea
Fong — Yea
Ammiano — Yea
Beall — Yea
Cook — Yea
Duvall — Yea
Yamada — Yea
Bonnie — Yea
Lowenthal — Yea
V. — Yea
Manuel — Yea
Perez — Yea
Portantino — Yea
Salas — Yea
Saldana — Yea
Audra — Yea
John — Not Voting
A. — Not Voting
Perez — Not Voting
Furutani — Not Voting
Gilmore — Yea
Hagman — Yea
Hall — Not Voting
Harkey — Yea
Hernandez — Yea
Hill — Yea
Huffman — Yea
Jeffries — Yea
Krekorian — Not Voting
Logue — Yea
Mendoza — Yea
Miller — Yea
Monning — Yea
Nava — Yea
Ruskin — Yea
Silva — Yea
Skinner — Yea
Solorio — Yea
Swanson — Yea
Torres — Yea
Torrico — Yea
Tran — Yea
Villines — Yea
Adams — Yea
Anderson — Yea
Bass — Yea
Blakeslee — Yea
Block — Yea
Blumenfield — Yea
Brownley — Yea
Buchanan — Not Voting
Hayashi — Yea
Huber — Yea
Knight — Nay
Lieu — Yea
Ma — Yea
Nestande — Yea
Nielsen — Yea
Smyth — Yea
Torlakson — Yea
Emmerson — Not Voting
Coto — Yea
Eng — Yea
Davis — Yea
DeVore — Yea
Galgiani — Yea
Garrick — Yea
Beth Gaines — Yea
Bill Berryhill — Yea
Bill Berryhill — Yea
Arambula, Joaquin Democratic Yea
Caballero, Anna M. Democratic Yea
Calderon, Lisa Democratic Yea
Jones, Brian W. Republican Yea
Niello, Roger W. Republican Yea
Strickland, Tony Republican Yea

Official roll call →

Do pass.

Passed 19 Yea · 0 Nay · 3 Other
Party YeaNayPresentNot Voting
Unaffiliated 17003
Democratic 1000
Republican 1000
Total 19003
% of votes cast 86%0%0%14%
How each member voted (22)
Member Party Vote
Charles — Yea
De — Yea
Leon — Yea
Audra — Yea
John — Not Voting
A. — Not Voting
Perez — Not Voting
Fuentes — Yea
Hall — Yea
Conway — Yea
Harkey — Yea
Hill — Yea
Ammiano — Yea
Nielsen — Yea
Solorio — Yea
Miller — Yea
Skinner — Yea
Torlakson — Yea
Coto — Yea
Davis — Yea
Calderon, Lisa Democratic Yea
Strickland, Tony Republican Yea

Official roll call →

Senate 3rd Reading SB98 Calderon

Passed 38 Yea · 1 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 35101
Democratic 2000
Republican 1000
Total 38101
% of votes cast 95%3%0%3%
How each member voted (40)
Member Party Vote
Yee — Yea
Hancock — Yea
Wyland — Yea
Cedillo — Yea
Cogdill — Yea
Corbett — Yea
Harman — Yea
Hollingsworth — Nay
Kehoe — Yea
Lowenthal — Yea
Negrete — Yea
Runner — Yea
Leno — Yea
Liu — Yea
McLeod — Yea
Alquist — Yea
Benoit — Yea
Correa — Yea
Ducheny — Not Voting
Dutton — Yea
Oropeza — Yea
Pavley — Yea
Simitian — Yea
Walters — Yea
Wiggins — Yea
Wolk — Yea
Aanestad — Yea
Ashburn — Yea
Huff — Yea
Maldonado — Yea
Romero — Yea
Steinberg — Yea
Wright — Yea
Cox — Yea
DeSaulnier — Yea
Denham — Yea
Florez — Yea
Calderon, Lisa Democratic Yea
Padilla, Stephen C. Democratic Yea
Strickland, Tony Republican Yea

Official roll call →

Do pass as amended.

Passed 12 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 12001
Total 12001
% of votes cast 92%0%0%8%
How each member voted (13)
Member Party Vote
Yee — Yea
Wyland — Yea
Hancock — Yea
Runner — Yea
Corbett — Yea
Oropeza — Yea
Walters — Yea
Kehoe — Yea
Leno — Yea
Wolk — Not Voting
Cox — Yea
DeSaulnier — Yea
Denham — Yea

Official roll call →

Placed on Appropriations Suspense file.

Passed 11 Yea · 0 Nay · 2 Other
Party YeaNayPresentNot Voting
Unaffiliated 11002
Total 11002
% of votes cast 85%0%0%15%
How each member voted (13)
Member Party Vote
Yee — Yea
Wyland — Yea
Runner — Yea
Corbett — Yea
Hancock — Yea
Kehoe — Yea
Leno — Yea
Wolk — Yea
Oropeza — Not Voting
Walters — Yea
Cox — Yea
DeSaulnier — Not Voting
Denham — Yea

Official roll call →

Do pass as amended, and re-refer to the Committee on Appropriations.

Passed 10 Yea · 0 Nay · 2 Other
Party YeaNayPresentNot Voting
Unaffiliated 8001
Democratic 2001
Total 10002
% of votes cast 83%0%0%17%
How each member voted (12)
Member Party Vote
Cogdill — Yea
Harman — Yea
Kehoe — Yea
Runner — Yea
Liu — Yea
Wolk — Yea
Correa — Not Voting
Cox — Yea
Florez — Yea
Calderon, Lisa Democratic Yea
Lowenthal, Josh Democratic Yea
Padilla, Stephen C. Democratic Not Voting

Official roll call →

Subjects

finance health-insurance
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Frequently asked questions

What does SB 98 do?
Existing law establishes when an interest, with respect to life and disability insurance, is insurable. This bill would provide that trusts and special purpose entities, as specified, where one or more beneficiaries of these trusts or special purpose entities do not have an insurable interest in the life of the insured, violate the insurable interest laws and the prohibition against wagering on life. The bill would also provide that any device, scheme, or artifice designed to give the appearance of an insurable interest, where there is no insurable interest, violates the insurable interest laws. Existing law defines "viatical settlement," as specified, and requires life and disability agents, among others, to file a declaration with the Insurance Commissioner that their agent license is valid and in good standing in order to engage in the business of viatical settlements. The commissioner may suspend the agent's ability to transact viatical settlements if this requirement is not complied with. A person who enters into or solicits a viatical settlement without a license, or a licensee who fails to comply with certain requirements, is guilty of a misdemeanor. This bill would repeal these provisions, and would instead revise and recast the law relating to viatical settlements to define those and other specified financial arrangements as "life settlements," as defined. The bill would prohibit a person from entering into, brokering, or soliciting life settlements unless that person holds a license, issued by the commissioner, to so act. The bill would specify the requirements to obtain a life settlement license, and would specify, among other things, disclosure requirements that must be complied with at the time of the solicitation of the life settlement contract. The bill would also provide that the insurance carrier may require a specified certification from the applicant. The bill would contain various other regulatory provisions relating to life settlement contracts, including provisions relating to the confidentiality of the insured's medical and financial information, and of the annual statements of life settlement licensees, as specified. This bill would also provide that applicable license fees shall be established by the commissioner. Because a violation of any of these provisions would be a misdemeanor, the bill would define new crimes and thereby impose a state-mandated local program. This bill would provide that the adoption or amendment of any regulation required by specific provisions shall take effect when filed with the Office of Administrative Law, as specified. This bill would provide that, with certain exceptions, it shall not apply to any life settlement contract entered into on or before July 1, 2010. This bill would provide that it would apply to any transaction involving any life insurance policy in effect, or entered into, on or after the operative date of the bill. This bill would make legislative findings and declarations relating to the need for confidentiality of specified information. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.
Who sponsors SB 98?
SB 98 is sponsored by Calderon.
What is the current status of SB 98?
This bill died with 2009-2010 Regular Session. It reached “To Executive” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track SB 98?
Track SB 98 free on One Click Politics — get push/email alerts when it moves.

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