The Illinois Insurance Department has issued rules implementing a new life settlement and viatical settlement law that is set to take effect July 1.
The new Illinois rules require licensed viatical and life settlement providers to provide proof of financial responsibility by posting a surety bond, cash, a certificate of deposit, securities or an irrevocable letter of credit for $125,000.
The department can also ask providers to show it an anti-fraud plan, an explanation of their method of determining life expectancies, and advertising materials.
New providers were required to notify the Illinois department by June 1 if they are engaged in the life settlement business in the state.
The rules also require new settlement brokers doing business in the state to complete 4 hours of training approved by the department. Non-residents can meet the requirement in their home states if they take courses that are approved by the Illinois department.