215 ILCS 159/1
Short title
Short title. This Act may be cited as the Viatical Settlements Act of 2009. (Source: P.A. 96-736, eff. 7-1-10.)
Illinois Compiled Statutes 215 ILCS 159 — Viatical Settlements Act of 2009.
Illinois · statute · 215 ILCS 159 · 29 active provisions
215 ILCS 159/5
Definitions
Definitions. As used in this Act: "Accredited investor" means an accredited investor as defined in Rule 501(a) promulgated under the Securities Act of 1933 (15 U.S.C. 77 et seq.), as amended. "Advertising" means any written, electronic, or printed communication or any communication by means of recorded telephone messag…
215 ILCS 159/10
License and bond requirements
License and bond requirements. (a) A person shall not operate as a viatical settlement provider or viatical settlement broker without first obtaining a license from the chief insurance regulatory official of the state of residence of the viator. A viatical settlement provider transacting business in this State shall pr…
215 ILCS 159/11
Viatical settlement broker training requirements
Viatical settlement broker training requirements. (a) Viatical settlement broker training shall be required as follows: (1) An individual may not sell, solicit, or negotiate viatical settlement contracts unless the individual is licensed as a life insurance producer or viatical settlement broker and has completed a one…
215 ILCS 159/15
License revocation for viatical settlement providers
License revocation for viatical settlement providers. (a) The Director may refuse to issue or renew or may suspend or revoke the license of any viatical settlement provider if the Director finds any of the following: (1) there was any material misrepresentation in the application for the license; (2) the viatical settl…
215 ILCS 159/17
License revocation and denial for viatical settlement brokers
License revocation and denial for viatical settlement brokers. Insurance producers operating as viatical settlement brokers shall be subject to the license denial, nonrenewal, and revocation provisions established by Section 500-70 of the Illinois Insurance Code, in addition to any monetary or criminal penalties as may…
215 ILCS 159/20
Approval of viatical settlement contracts and disclosure statements
Approval of viatical settlement contracts and disclosure statements. A person shall not use a viatical settlement contract form or provide to a viator a disclosure statement form in this State unless first filed with and approved by the Director. The Director shall disapprove a viatical settlement contract form or disc…
215 ILCS 159/25
Reporting requirements and privacy
Reporting requirements and privacy. (a) Each viatical settlement provider shall file with the Director on or before March 1 of each year a copy of its audited annual statement for the immediately preceding year ending December 31. The Director may require newly licensed entities to file annual statements for additional…
215 ILCS 159/30
Examination or investigation
Examination or investigation. (a) The Director may when and as often as the Director deems it reasonably necessary to protect the interests of the public, examine the business affairs of any licensee. In scheduling and determining the nature, scope, and frequency of the examinations, the Director shall consider such ma…
215 ILCS 159/35
Disclosure to viator
Disclosure to viator. (a) With each application for a viatical settlement contract, a viatical settlement provider or viatical settlement broker shall provide the viator with at least the following disclosures no later than the time the viatical settlement contract is signed by all parties. The disclosures shall includ…
215 ILCS 159/40
Disclosure to insurer
Disclosure to insurer. Prior to the initiation of a plan, transaction, or series of transactions a viatical settlement broker or viatical settlement provider shall fully disclose to an insurer a plan, transaction, or series of transactions to which the viatical settlement broker or viatical settlement provider is a par…
215 ILCS 159/45
General rules
General rules. (a) A viatical settlement provider entering into a viatical settlement contract shall first obtain: (1) if the viator is the insured, a written statement from a licensed attending physician that the viator is of sound mind and under no constraint or undue influence to enter into a viatical settlement con…
215 ILCS 159/50
Prohibited practices
Prohibited practices. (a) It is a violation of this Act for any person to enter into a viatical settlement contract prior to the application of or issuance of a policy that is the subject of the viatical settlement contract. It is a violation of this Act for any person to enter into stranger-originated life insurance o…
215 ILCS 159/55
Prohibited practices and conflicts of interest
Prohibited practices and conflicts of interest. (a) With respect to any viatical settlement contract or insurance policy, no viatical settlement broker knowingly shall solicit an offer from, effectuate a viatical settlement with, or make a sale to any viatical settlement provider, viatical settlement purchaser, financi…
215 ILCS 159/60
Advertising for viatical settlements
Advertising for viatical settlements. (a) The purpose of this Section is to provide prospective viators with clear and unambiguous statements in the advertisement of viatical settlements and to assure the clear, truthful, and adequate disclosure of the benefits, risks, limitations, and exclusions of any viatical settle…
215 ILCS 159/65
Fraud prevention and control
Fraud prevention and control. (a) A person shall not commit the offense of viatical settlement fraud. A person shall not knowingly or intentionally interfere with the enforcement of the provisions of this Act or investigations of suspected or actual violations of this Act. A person in the business of viatical settlemen…
215 ILCS 159/70
Injunctions; civil remedies; cease and desist
Injunctions; civil remedies; cease and desist. (a) In addition to the penalties and other enforcement provisions of this Act, if any person violates this Act or any rules implementing this Act, the Director may seek an injunction in a court of competent jurisdiction and may apply for temporary and permanent orders that…
215 ILCS 159/72
Crimes and offenses
Crimes and offenses. (a) A person acting in this State as a viatical settlement provider without having been licensed pursuant to Section 10 of this Act who willfully violates any provision of this Act or any rule adopted or order issued under this Act is guilty of a Class A misdemeanor and may be subject to a fine of…
215 ILCS 159/75
Unfair trade practices
Unfair trade practices. A violation of this Act, including the commission of viatical settlement fraud, shall be considered an unfair trade practice under Article XXVI of the Illinois Insurance Code. (Source: P.A. 96-736, eff. 7-1-10.)
215 ILCS 159/85
Additional powers
Additional powers. In addition to any other hearing, examination, or investigation specifically provided for by this Act, the Director may conduct such hearings, examinations, and investigations as are provided for by Sections 402 and 403 of the Illinois Insurance Code. (Source: P.A. 96-736, eff. 7-1-10.)
215 ILCS 159/90
Insurance Code Provisions
Insurance Code Provisions. Insurance producers operating as viatical settlement brokers shall be subject to Article XXXI of the Illinois Insurance Code. (Source: P.A. 96-736, eff. 7-1-10.)
215 ILCS 159/95
Applicability of securities laws
Applicability of securities laws. Nothing in this Act shall preempt or otherwise limit the provisions of the Illinois Securities Law of 1953 or any regulations, bulletins, or other interpretations issued by or through the Secretary of State acting pursuant to the Illinois Securities Law of 1953. Compliance with the pro…
215 ILCS 159/100
Viatical settlement provider application
Viatical settlement provider application. A viatical settlement provider lawfully transacting business in this State may continue to do so pending approval or disapproval of the provider's application for a license as long as the application is filed with the Director not later than 30 days after the effective date of…
215 ILCS 159/105
Application of this Act
Application of this Act. Notwithstanding any other provisions of this Act, nothing in this Act shall apply in the following instances: (i) The purchase of the cash value of a life insurance policy and rights impacting the cash value, including death benefits, for an amount approximately equal to the cash value, but onl…
215 ILCS 159/900
(Amendatory provisions; text omitted)
(Amendatory provisions; text omitted). (Source: P.A. 96-736, eff. 7-1-10; text omitted.)
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