CA SB935

Requires life settlement licensees to file a legal memorandum from outside tax counsel when soliciting, negotiating, or entering into a life or viatical settlement intended to qualify for special tax treatment under Internal Revenue Code Section 101(g)

The memorandum must state that proceeds from the transaction would receive preferable tax treatment as amounts paid to persons suffering from chronic illness

Applies only to settlements specifically intended to qualify for the favorable federal tax treatment under IRC Section 101(g)

Violations of this requirement are not subject to the misdemeanor penalties listed in Section 10113.2(t) of the Insurance Code