By Max Chow
This month, Governor Schwarzenegger had SB 1543 on his desk, addressing an obscure and shady practice called “STOLI” (or Stranger Originated Life Insurance) and, perhaps more importantly, the growing market of Life Settlements. Insurance Carriers have been campaigning against Stranger-originated life insurance, which most people accept as bad. Consumer advocacy groups have been campaigning for Life Settlements, which all parties accept as good. After that, it’s almost all disagreement.
What is a Life Settlement?