Illinois Life Producer State-designated Practice Exam

Who is responsible for negotiating viatical settlements in Illinois?

1. Insurance agent

2. Viatical settlement provider

3. Viatical settlement broker

4. Policy owner

The correct answer is: Viatical settlement broker

The responsibility for negotiating viatical settlements falls to the viatical settlement broker. A viatical settlement broker acts as a middleman between the policy owner and the viatical settlement provider. Their role is to facilitate the transaction, ensuring that the policy owner receives the best possible terms by comparing offers from multiple providers. In Illinois, this definition aligns with regulatory standards, as viatical settlement brokers are licensed individuals who are specifically trained to handle the complexities of these transactions. They must adhere to state laws governing viatical settlements, safeguarding the interests of policy owners throughout the negotiation process. This specific designation underscores the importance of having professionals with the proper training and regulatory knowledge manage negotiations, distinguishing them from other parties involved, like insurance agents, who may not have the same focus on viatical settlements, or the policy owner, who may lack the expertise required for effective negotiation.