Section 3701.50 Standards for Evaluation of Reasonable Payments for Terminally or Chronically Ill Insureds

a)         In order to assure that viators receive a reasonable return for viaticating an insurance policy, the return for viaticating a policy shall be no less than the following payouts for insureds who are terminally or chronically ill:

Insured's Life Expectancy                              Minimum Percentage of Face

Value Less Outstanding Loans

Received by Viator

25 months or less                                                        [75%]

b)         Except when the cash surrender value is paid, the percentage may be reduced by 5% for viaticating a policy written by an insurer rated less than the highest 4 categories by A.M. Best, or a comparable rating by another rating agency.

(Source:  Added at 39 Ill. Reg. 4975, effective March 23, 2015)