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.
REGULATION OF LIFE SETTLEMENTS AND STRANGER ORIGINATED LIFE INSURANCE
By Max Chow
When Governor Schwarzenegger was looking over SB 1543, there were three sides to this coin. Over the next 6 weeks, we will discuss and analyze all three points of view. This week, we start with the consumer, a 75 year old man we’ll call “Gramps.”