California Gov. Arnold Schwarzenegger, R, has vetoed a life settlement bill.
The bill, S.B. 1543, would update the California life settlement laws by changing the laws to refer to "life settlements," rather than to "viatical settlements," and by stating that some types of trust-owned life insurance arrangements violate state insurable interest laws.
The bill also would require life and disability agents to keep their agent licenses in good standing to retain the right to handle life settlement business, and it would impose a number of other requirements, such as life settlement license requirements for individuals who arrange life settlements.
S.B. 1543 was amended "very late" in the legislative session, Schwarzenegger writes in a letter to the Senate.
"While many of the provisions were agreed to by all the parties involved, some of the provisions are still subject to worthwhile debate," Schwarzenegger writes.
