State RegulationsIL specificDifficulty 2/5
Under 215 ILCS 5/159, which parties must be licensed to conduct viatical settlement business in Illinois?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
215 ILCS 5/159, the Viatical Settlements Act, requires the businesses on both sides of the transaction to be licensed: the providers that purchase policies and the brokers that negotiate for the sellers. The policyowner selling a personally owned policy and the insurer that issued it are not the licensed parties, which is why Illinois concentrates its oversight on the settlement industry itself.
Why the other options are wrong
- A) A policyowner selling her own policy is a viator, not a licensed provider or broker under 215 ILCS 5/159.
- B) The issuing insurer is not a party to the settlement and needs no viatical license.
- C) Financing entities may support settlements, but the Act's licensing duty targets providers and brokers who effectuate or negotiate the transactions.
Memory hook
Buying or brokering life policies? Illinois licenses both sides.