The guidelines for a new life settlement law in Illinois will be posted on the state insurance department website next week, a state official said.
The law, which was passed last year but doesn’t take effect until July 1, allows life insurance policies to be sold after two years and outlaws “stranger-originated” life insurance, according to a report in the Life Settlements Wire. It is based partly on legislation developed by the National Conference of Insurance Legislators and the National Association of Insurance Commissioners.
Illinois insurance director Michael McRaith told the publication that his office will not publish the actual regulations in the law just yet, but will instead wait a year or two because it needs to figure out how the new law will affect consumers. After that, it will begin to produce reports from the information to better advise the legislature.
Life settlements are a booming business across the country, as 40 different companies submitted forms to the New York Insurance Department last month, said a separate Life Settlements Wire report. These will allow them to buy and sell life settlements in the state of New York.