This is interesting news, and I am sure we will have a more detailed breakdown in the exact legislation once everything is complete, here is the press release:

The California Senate Banking and Insurance Committee approved legislation yesterday that would regulate the life settlements market in the state for the first time.

The committee voted 10-0 to support SB 98 following a public hearing on the proposal. The bill is based on the model act developed by the National Conference of Insurance Legislators (NCOIL), which includes provisions meant to prevent stranger-originated life insurance and a two-year waiting period before new policies could be sold.

Similar legislation was vetoed last year by Gov. Arnold Schwarzenegger.

A key opponent of last year’s settlement legislation was Pacifica Group, an Irvine, Calif.-based premium finance company. Pacific Group threw its support behind this year’s legislation after it was amended with a provision that would ban insurers from denying life insurance applications solely because the applicant planned to use premium financing.

Much of the rest of the life settlement and life insurance industries also backed the legislation. There were several opponents, however, including the California Life Insurance Settlement Association (CALSA), ING, and Roycroft Funding, a Long Beach, Calif.-based settlement company.

California now follows the other big states with some type of legislation including Florida and Texas.

You can also visit Life Settlement License for more information.