HB 5337

Abstract

Creates the Viatical Settlements Act of 2006. Provides for the regulation of viatical settlement providers, brokers, and life insurance producers who enter into viatical settlements. Provides license requirements and establishes grounds for the suspension, denial, nonrenewal, or revocation of a license. Requires viatical settlement contracts and disclosure statements to be approved by the Secretary of Financial and Professional Regulation. Requires certain documents to be kept by licensees for examination by the Secretary and sets guidelines for examination by the Secretary. Provides a period of time for rescission after certain disclosures are made. Sets forth rules that must be complied with by viatical settlement providers and insurers. Requires certain disclosures to be made in connection with viatical settlements. Sets forth prohibited practices and exceptions. Grants the Secretary the authority to adopt rules. Provides standards for application by current viatical settlement providers. Sets forth violations and penalties for violations. Provides standards for advertisement of viatical settlement services and contracts. Provides that the Illinois Securities Law of 1953 is not preempted or limited by the Act and amends the Illinois Security Law of 1953 to include viatical investments in a definition of "security" and to add a definition of "viatical investment". Provides that the provisions of the Act are severable. Repeals the Viatical Settlements Act. Amends the Freedom of Information Act to exempt from disclosure certain documents required under the Viatical Settlements Act of 2006. Amends the Illinois Insurance Code to provide that engaging in acts or practices prohibited by the Viatical Settlements Act of 2006 constitutes an unfair method of competition and unfair and deceptive act or practice in the business of insurance. Effective immediately.