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Life Settlement - Provider

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 Settlement 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 the 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 as defined by the act exist.


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.


Provider means a person, other than an owner, who enters into a life settlement contract with an owner resident in this state. Provider does not include:

  • A bank, savings bank, savings and loan association, credit union or other licensed lending institution that takes an assignment of a life insurance policy solely as the collateral for a loan
  • A premium finance company making premium finance loans that takes an assignment of a life insurance policy solely as collateral for a loan
  • The insurer of the life insurance policy
  • An authorized or eligible insurer that provides stop-loss coverage or financial guaranty insurance to a life settlement provider, purchaser, financing entity, special purpose entity or related provider trust
  • A financing entity
  • a special purpose entity;
  • A related provider trust
  • Any other person that the Director of the Department of Insurance determines is not the type of person intended to be covered by the definition of life settlement provider

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 that any person acting as a life settlement broker or a life settlement provider be licensed as a life insurance producer in Idaho in addition to the life settlement provider or broker license.

Life Settlement Provider List


The life settlement provider registration is available to residents and non-residents and to individuals or business entities. The fee to register as a provider is $500.  A provider may apply via paper or online through Sircon.



 This license renews every two years on the same date as the producer life license. The fee to renew the life settlement provider license is $300.  


Licenses that have not been renewed prior to the expiration date may be reinstated. Licensees will complete the reinstatement form and pay $600 which includes a $300 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 are required to file an annual statement with the Department on or before March 1 each year on a form prescribed by Department rule
  • 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
  • Life settlement providers must inform the insured in writing of any changes in ownership or beneficiary no more than twenty days after the change
  • If the policy owner is the insured, a life settlement provider must obtain a written statement from a licensed attending physician that the owner is competent to enter into a life settlement contract and obtain a document in which the insured consents to the release of medical records
  • The Act includes provisions for notice by the life settlement provider to the insurer that issued the policy being settled and requirements for insurers to respond to requests for verification of coverage
  • 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 settlement 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.


FEES – Provider 

  • Application - $500
  • Renewal - $300
  • Reinstatement - $600


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.