Welcome Funds retains Life Markets Compliance, LLC (LMC) as its third party provider of legal, regulatory and compliance services. It is in conjunction with LMC that we are able to provide these life settlement regulation updates. For more specific information on the evolving life settlement market in California, please access the link below:

The Official Notice issued by the California Department of Insurance

California Life Settlements

According to the California Department of Insurance website, “[t]he provisions of SB 98 apply to all California life settlement transactions beginning on July 2, 2010." However, applications for licensing are still unavailable as the emergency rules have not been officially adopted. Therefore, as of today, there is nothing for potential licensees to complete. In the interim, the Department has posted an update which can be accessed through the link above.

There is a "Life Settlement Notice," within the update, focusing on broker licensing. It states that "[p]er the provisions of SB 98, beginning on July 2, 2010, life producers who have been licensed in California for at least one year were to comply with a notification procedure to broker life settlements. Specifically, these producers were to be required to notify CDI within ten days of brokering life settlements. However, at this time, the emergency regulations needed to implement the licensing provisions of SB 98 are pending submission to the California Office of Administrative Law (OAL). In the meantime, individuals and business entities who are eligible to broker life settlements under SB 98, in that they have been licensed in California as a life agent for at least one year, may continue to do so until such time as the emergency regulations are approved by OAL, or the commissioner advises otherwise. Please be advised also that those brokering life settlements are expected to comply with SB 98’s consumer disclosure requirements."

We will continue to closely monitor the situation in California.

Life Markets Compliance, LLC

The firm was originally formed to assist existing and potential life settlement brokers navigate the complex industry with their licensing, regulatory and contractual needs. The firm has a number of fee-based services available, including helping applicants become licensed in various states like California. Life Markets Compliance can serve as the primary provider of compliance services or as a secondary complement and extension to established compliance, legal and/or licensing departments. For more information, please call 561-826-0371 or e-mail Jeff Deutsch at jdeutsch@lifemarketscompliance.com.

Welcome Funds, Inc ("WFI") and Life Markets Compliance, LLC ("LMC") are providing the above Compliance Alert as a reference only and are not issuing a representation as to its accuracy. The information should not be considered official State material. WFI and LMC both encourage all parties accessing the above information to independently confirm the extent and nature of their own requirements with each applicable Department of Insurance (or equivalent division) and/or State law. WFI and LMC are both not liable for any action or inaction taken due to reliance upon the information above.