California Code of Regulations
Title 10 - Investment
Chapter 5 - Insurance Commissioner
Subchapter 3 - Insurers
Article 12.9 - Life Settlements
Section 2548.6 - Provider Escrow Requirements
Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) Within three (3) business days of a provider's receipt of documents to effect the transfer of a legal or beneficial interest in the life insurance policy which is the subject of the life settlement agreement, the provider shall deposit the proceeds payable to the owner under the life settlement into an escrow or trust account in a state or federally chartered financial institution whose deposits are insured by the Federal Deposit Insurance Corporation (FDIC).
(b) The escrow or trust account shall be managed by a trustee or escrow agent independent of the parties to the life settlement contract and shall be pursuant to a written agreement signed by the provider and the owner. An attorney or law firm representing the provider shall not be the escrow agent for the provider.
(c) All persons receiving any form of compensation under the escrow or trust agreement must be clearly identified, including the name, business address, telephone number, tax identification number and compensation amount.
(d) The trustee or escrow agent shall transfer the proceeds to the owner within three (3) business days following provider's receipt of acknowledgement of the transfer of ownership or beneficial rights to the insurance policy.
1. New section
filed 12-22-2006; operative 1-21-2007 (Register 2006, No. 51).
2.
Repealer and new section filed 7-29-2010 as an emergency; operative 7-29-2010.
Emergency regulation shall remain in effect, not to be repealed by the Office of
Administrative Law, unless repealed by the Department of Insurance pursuant to
Insurance Code section
10113.35
(Register 2010, No. 31).
3. Change without regulatory effect amending
NOTE filed 1-24-2012 pursuant to section
100, title 1, California Code of
Regulations (Register 2012, No. 4).
Note: Authority cited: Section 10113.35, Insurance Code; CalFarm Ins. Co. v. Deukmejian, 48 Cal.3d 805 (1989); 20th Century Ins. Co. v. Garamendi, 8 Cal.4th 216 (1994). Reference: Section 10113.3, Insurance Code.
