On September 30, 2008, California’s Governor, Arnold Schwarzenegger, vetoed Senate Bill 1543 (“SB 1543”) aimed at regulating life settlement transactions. SB 1543, which was previously discussed here, received support from a number of trade groups including the American Council of Life Insurers, the AARP, and Life Insurance Settlement Association.

Governor Schwarzenegger declined to sign SB 1543, noting the absence of adequate disclosure for consumers and expressing concern that SB 1543 may exclude some companies from participating in the legitimate life settlement market. He indicated that he would convene a meeting of life insurance companies, trade associations, life settlement companies and legislators to review the provisions of the bill and expressed confidence that new legislation could be passed next year.

Click here to read Governor Schwarzenegger's veto letter.