Calif. Group Blasts Settlement Law

“The bill requires them only to notify people that they are options and should consult a financial planner,” says Simoni, who works for the lobbying firm California Advocates Inc., Sacramento. “It doesn’t say explicitly that life settlements are an option. The language is buried in renewal notices.”

CALSA maintains policy holders should be notified of the settlement alternative at “essential trigger points,” such as when the owner turns age 65, when the policy is about to lapse or when the owner seeks to surrender the policy for its cash value, according to Simoni.