Illinois Life Settlements
Illinois life settlement regulations have been pending for a while. Officials are hoping that the carefully formed Illinois life settlement market regulations will bring more focus as well as fluidity to the new industry.
An Illinois life settlement is the sale of a life insurance policy to a life settlement provider by the policy holder who maintains residency in the state of Illinois. A policy is often sold because the holder cannot afford to keep their life insurance policy, they need extra cash to make ends meet, or they just simply do not need their policy any longer. This is when the Illinois life settlement market offers an alternative to lapsing a policy.
Transactions are now being more closely regulated by the state of Illinois insurance department. The new rules require specific licensing of all life settlement providers, brokers, and life insurance agents as well as upkeep of financial proof and documentation. A formulated fraud-prevention plan with a follow up fraud report procedure plan must also be presented at time of licensing. Life settlements in the state of Illinois are now written to fully protect consumer personal information while showing transparency throughout the process of the settlement.