Source: https://doi.idaho.gov/Licensing/LS/General
Timestamp: 2019-12-06 01:02:29
Document Index: 703314391

Matched Legal Cases: ['§41', '§41', '§41', '§41', '§41', '§41', '§41', '§41', '§41', '§41', '§41', '§41', '§41', '§41', '§41', '§41', '§41', '§41']

Licensing Services > Life Settlement > General Life Settlement Licensing Information
A life settlement, also referred to as a viatical settlement, is a transaction involving the sale of an interest in a life insurance policy by the owner of the policy. The Life Settlements Act contains a detailed explanation of what types of contracts will be considered life settlement contracts for regulatory purposes. It is illegal for any person to act as a life settlement broker or provider for a life insurance policy owned by an Idaho resident unless the broker or provider has complied with the licensing requirements of the law. A key part of the Idaho Life Settlements Act makes it illegal to engage in stranger originated life insurance (STOLI) transactions. A STOLI transaction is defined as an act, plan, practice or arrangement to initiate a life insurance policy for the benefit of a third party investor who, at the time a policy is written, has no insurable interest in the insured. For example, it is illegal for an investor with no insurable interest in a person to solicit the person to purchase a life insurance policy for the purpose of selling the policy to the investor. In addition, it is a violation of the Life Settlements Act to enter into a life settlement contract within two years of the date a policy was issued unless special circumstances exist (as defined by the act.) Idaho offers both a Life Settlement Broker license and a Life Settlement Provider license.
Idaho Code in Connection with Life Settlement Licensing
Life Settlements Act (§41-1950 through §41-1965):
§41-1950 (Short Title and Scope)
§41-1951 (Definitions)
§41-1952 (Requirement to License)
§41-1953 (Filing Contracts and Disclosure Statements)
§41-1954 (Reporting Requirements and Privacy)
§41-1955 (Examination and Record Retention)
§41-1956 (Disclosure Requirements to Owner upon Application)
§41-1957 (Disclosure Requirements to Owner by Provider upon Settlement Contract)
§41-1958 (Disclosure Requirements to Owner by Broker upon Settlement Contract)
§41-1959 (Notification Requirements When Change in Provider Occurs)
§41-1960 (General Rules)
§41-1961 (Permitted Life Settlements and Supporting Documentation Required)
§41-1962 (Prohibited Practices and Conflicts of Interest)
§41-1963 (Advertising)
§41-1964 (Penalty – Unfair Trade Practices)
§41-1965 (Authority to Promulgate Rules)
18.03.02 (Life Settlements)
Appendix A-1 Life Settlement Provider Report - Idaho TransactionsOnly
Appendix A-2 Life Settlement Provider Report - Instructions
Appendix A-3 Life Settlement Provider Supplemental Report - IdahoTransactions Only
Appendix A-4 Life Settlement Provider Supplemental Report -Instructions
Appendix B - Disclosure to Owner
Appendix C - Life Settlement Provider's Disclosure to Owner UponSettlement
Appendix D - Life Settlement Broker's Disclosure Form
BULLETIN 09-06 - Persons Interested in the Business of Life/Viatical Settlements
Not all inclusive. Please refer to Chapter 10 and 19 for further definitions.
Life Settlement Broker: Broker means a person who, working exclusively on behalf of an owner and for a fee, commission or other valuable consideration, offers or attempts to negotiate life settlement contracts between an owner and one or more life settlement providers or one or more life settlement brokers. No matter how the life settlement broker is compensated, a life settlement broker is deemed to represent only the owner, and not the insurer or the life settlement provider. A life settlement broker owes a fiduciary duty to the owner to act according to the owner's instructions and in the best interest of the owner. The term does not include an attorney, certified public accountant or financial planner accredited by a nationally recognized accreditation agency who is retained to represent the owner and whose compensation is not paid directly or indirectly by the life settlement provider or purchaser.
Life Settlement Provider: Provider means a person, other than an owner, who enters into a life settlement contract with an owner resident in this state. Provider does not include:
A bank, savings bank, savings and loan association, credit union or other licensed lending institution that takes an assignment of a life insurance policy solely as the collateral for a loan
A premium finance company making premium finance loans that takes an assignment of a life insurance policy solely as collateral for a loan
The insurer of the life insurance policy
An authorized or eligible insurer that provides stop-loss coverage or financial guaranty insurance to a life settlement provider, purchaser, financing entity, special purpose entity or related provider trust
A financing entity
a special purpose entity;
A related provider trust
Any other person that the Director of the Department of Insurance determines is not the type of person intended to be covered by the definition of life settlement provider
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