Official Government Website

Life Settlement (Broker and Provider)

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. 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. 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

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

Definitions

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.

Application Checklist

Life Settlement Producer License Requirements

  • An active Idaho Producer life license.
  • Application
  • Non-Refundable Fee: $500. Checks should be made payable to the Idaho Department of Insurance.
  • Required Forms:
  • Life Settlements ID-FF
  • Life Settlements Checklist
  • Biographical Affidavit  
  • 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.

If applying by paper, checks should be made payable to the Idaho Department of Insurance. Application and attachments should be mailed to:

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

Life Settlement Broker License Requirements

  • An active Idaho Producer Life license
  • Application: Online  
  • Non-Refundable Fee: $300.  Checks should be made payable to the Idaho Department of Insurance.
  • Required Forms: 
  • Life Settlements ID-FF,
  • Life Settlements Checklist
  • 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 and attachments should be mailed to:

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

Renewal Information

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. 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 or Sircon

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. 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 or Sircon

Reinstatement

Life settlement Broker License

There is a Non-Refundable Reinstatement Fee: $600

Life settlement Broker License

There is a Non-Refundable Reinstatement Fee: $160

Reporting of Actions

Producers and agencies have a duty to report any criminal or administrative actions to the Idaho Department of Insurance within 30 days per §41-5819

The Department encourages producers to use the NIPR Reporting of Actions Warehouse atwww.nipr.com as a convenient means to post their documents and explanations to report to any state in which they are licensed.

Have more questions?
Contact the Licensing Team

ver: 3.4.0 | last updated: