State RegulationsMA specificDifficulty 1/5
Under Massachusetts law, who must be licensed as a life settlement broker?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
The Massachusetts life settlement framework — M.G.L. c. 175, § 212 (definitions) and M.G.L. c. 175, § 213 (licensing) — licenses the life settlement broker: the person who, for compensation, solicits or negotiates a life settlement on behalf of an owner seeking to sell an existing policy to a third-party provider. The license exists because brokering policy sales is a distinct regulated activity, separate from ordinary life insurance production, with its own duties to the selling policyowner.
Why the other options are wrong
- A) Surrendering one's own policy to the insurer is a contractual act with the insurer, not life settlement brokering under M.G.L. c. 175, § 213.
- C) A certifying physician supplies medical information; the broker role belongs to whoever, for compensation, shops the policy to buyers.
- D) Life settlement authority is not automatic with a life license; the separate broker licensing requirements of M.G.L. c. 175, § 213 apply.
Memory hook
Paid to shop a policy to strangers? That's a life settlement broker — licensed under § 213.