Life Settlement (Broker and Provider)

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)

Administrative Rules:

IDAPA 18.03.02 and Rule attachments.

Bulletin:

BULLETIN 09-06 – Persons Interested in the Business of Life/Viatical Settlements

Life Settlement Broker: 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: 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.

For a full list of insurance licensing terms please click here.

• All life settlement contract forms and disclosure statements must be filed with the Department of Insurance before being used in Idaho.
• Life settlement providers and brokers will be subject to examination by the Department and must retain life settlement records for at least five years.
• Life settlement providers or brokers must provide specific disclosures to the policy owner at or before the time a life settlement contract is signed by the owner. The Act provides the policy owner with an absolute right to rescind a settlement contract within 20 days of the date it was executed.

Application Process

Step One: Have an active Idaho Producer License that is carrying the Life line of authority.

Step Two: Assemble the application packet. This packet must contain:

• Application
• Life Settlements Checklist
• Biographical Affidavit  
• Non-Refundable Fee: $500. Checks should be made payable to the Idaho Department of Insurance.

Application packet should be mailed to:

Idaho Department of Insurance
700 W State Street, 3rd Floor
PO Box 83720
Boise ID 83720-0043

• Each person or entity licensed as a Life Settlement Broker or Provider must also be licensed for the Life line of authority as an Idaho Producer.
• All life settlement contract forms and disclosure statements must be filed with the Department of Insurance before being used in Idaho.
• Life settlement providers and brokers will be subject to examination by the Department and must retain life settlement records for at least five years.
• Life settlement providers or brokers must provide specific disclosures to the policy owner at or before the time a life settlement contract is signed by the owner. The Act provides the policy owner with an absolute right to rescind a settlement contract within 20 days of the date it was executed.

Application Process

An active Idaho Producer Life license

Step One: Have an active Idaho Producer License that is carrying the Life line of authority.

Step Two: Apply via NIPR.

Step Three: Assemble the application packet. This packet must contain:

• Non-Refundable Fee: $300. Checks should be made payable to the Idaho Department of Insurance.

Life Settlements ID-FF

Life Settlements Checklist

 Application packet should be mailed to:

Idaho Department of Insurance
700 W State Street, 3rd Floor
PO Box 83720
Boise ID 83720-0043

Life Settlement Provider License

The Department considers the renewal of the license to be the responsibility of the licensee.

Life Settlement licenses expire on the same day as the affiliated Idaho Producer’s License. The renewal for the Producer License must be submitted first.

A renewal may be applied for up to six weeks prior to the expiration of your license.

There is a Non-Refundable Renewal Fee: $300.

The license can be renewed online via NIPR

Life Settlement Broker License

The Department considers the renewal of the license to be the responsibility of the licensee.

This license will expire the same day as the required Idaho Producer’s License. The renewal for the Producer License must be submitted first.

A renewal may be applied for up to six weeks prior to the expiration of your license.

There is a Non-Refundable Renewal Fee: $80

The license can be renewed online via NIPR

Life settlement Provider License

There is a Non-Refundable Reinstatement Fee: $600

Life settlement Broker License

There is a Non-Refundable Reinstatement Fee: $160

Producers and agencies have a duty to report any criminal or administrative actions to the Idaho Department of Insurance within 30 days per §41-1021.

Producers are encouraged to use the NIPR Reporting of Actions Warehouse at www.nipr.com as a convenient means to post documents and explanations related to reportable actions.

While the Department encourage the use of the NIPR Reporting of Actions Warehouse for documents, actions still need to be reported to the Department directly, either by e-mail or the applicable background question on new license applications and/or renewals.

Links

Update Contact Information

Letter of Clearance Request from the State of Idaho

Renew a License

Biographical Affidavit

Printable Forms

Application Form, Life Settlement Broker License

Application Form, Life Settlement Provider

Appendix A-1

Appendix A-2

Appendix A-3

Appendix A-4

Appendix B

Appendix C

Appendix D

BULLETIN NO 09-06

Doing Business As Form

Letter of Clearance Request

Life Settlement Checklist

Life Settlements Filing Submission Documentation Form

Life Settlements, Broker Flyer

Life Settlements, Provider Flyer

Limited Lines Producer Pre-Licensing Manual

Name Change, Business

Name Change, Individual

Update Address Form, State to State

Voluntary Surrender Form, Individuals

Voluntary Surrender Form, Business Entities