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Life Settlement - Broker

The 2009 Idaho Legislature enacted House Bill 75 creating new requirements for persons engaged in the business of life settlements. The Idaho Life Settlements Act takes effect July 1, 2009, and will affect any person involved in selling the rights to benefits or ownership interests in life insurance policies where the policy owner is a resident of Idaho . The Life Settlements Act is in Idaho Code, Sections 41-1950 through 41-1965 – Life Insurance Policies and Annuity Contracts. Persons involved in the business of life insurance and life or viatical settlements should carefully review these new code sections. Also read IDAPA 18.01.13, Idaho Rules for the Life Settlements Act.

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 new law.

A key part of the Idaho Life Settlements Act makes it illegal to engage in stranger originated life insurance (STOLI) transactions. A STOLI transaction is defined as an act, plan, practice or arrangement to initiate a life insurance policy for the benefit of a third party investor who, at the time a policy is written, has no insurable interest in the insured. For example, it is illegal for an investor with no insurable interest in a person to solicit the person to purchase a life insurance policy for the purpose of selling the policy to the investor. 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.


A life or viatical settlement is a transaction involving the sale of an interest in a life insurance policy by the owner of the policy. The Life Settlements Act contains a detailed explanation of what types of contracts will be considered life settlement contracts for regulatory purposes.


Broker means 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.

BULLETIN 09-06 - Persons Interested in the Business of Life/Viatical Settlements


If the owner of the life insurance policy is an Idaho resident, the act requires any person acting as a life settlement broker or a life settlement provider to be licensed as a life insurance producer in Idaho in addition to the life settlement provider or broker license.

Life Settlement Broker List


Life settlement broker registration is available to residents and non-residents and to individuals or business entities. The fee to register as a life settlement broker is $300. A broker may apply via paper or online through Sircon.


  • ONLINE   (Not available at this time.  Please use paper application.)


This license renews every two years on the same date as the producer life license. The fee to renew the life settlement broker license is $80.  


Licenses that have not been renewed may be reinstated. Licensees will complete the reinstatement form and pay $160 which includes an $80 reinstatement fee.


  • 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
  • The Act identifies prohibited practices relating to life settlement transactions

*NOTE: This is a partial listing of requirements for the life settlements broker/provider license. Please consult the Life Settlements Act for additional requirements.


  • IDAPA 18.01.13


  • This license is the property of the state of Idaho , issued to the producer, who is responsible for it.
  • In the event this license is cancelled, surrendered, terminated, revoked or suspended, the license must be returned to this Department immediately, pursuant to Idaho Code 41-1027.
  • Please reference the Idaho license number or National Producer Number when contacting the Department of Insurance.



  • RENEWAL $ 80


Attn: Producer Licensing Section
Idaho Department of Insurance
700 W State Street, 3rd Floor
PO Box 83720
Boise ID 83720-0043

Email: Producer Licensing Section
Web site: www.doi.idaho.gov
Phone: 208-334-4250
Fax: 208-334-4398

Please contact us with licensing questions.