State RegulationsAZ specificDifficulty 3/5
An Arizona attorney, while practicing law, is compensated for advising a client about whether to enter a life settlement contract. Under A.R.S. 20-3202(L), the attorney is:
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
A.R.S. 20-3202(L) carves out an exception for attorneys and CPAs who advise clients about life settlements within their ordinary professional capacity. Because their advice is ancillary to their recognized profession and regulated by their own professional standards, Arizona does not require them to hold a life settlement broker license for that activity. The exception is narrow — it does not license them to solicit settlements as a business.
Why the other options are wrong
- A) The licensure mandate of A.R.S. 20-3202 does not reach attorneys or CPAs acting within their professional practice under subsection (L).
- C) The broker licensure and fee requirements apply to persons brokering settlements as a business, not to professionals within the (L) exception.
- D) No settlement broker registration is needed because the professional exception removes the attorney from the broker definition for this activity.
Memory hook
Attorneys and CPAs advising in their own lane skip the broker license — that's 20-3202(L).