State RegulationsAZ specificDifficulty 2/5
An Arizona business wants to act as a life settlement broker, negotiating life settlement contracts on behalf of policyowners. Under A.R.S. 20-3202, what licensure must the business hold?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under A.R.S. 20-3202, a life settlement broker must be an Arizona-licensed producer with a life line of authority to negotiate life settlement contracts for policyowners. Settlement activity sits squarely inside the insurance regulatory perimeter, so a local business license or a health line does not substitute for the producer license with the life line.
Why the other options are wrong
- A) Wrong because A.R.S. 20-3202 requires settlement brokers to be licensed producers; operating without any insurance license is not permitted.
- C) Wrong because a municipal business license does not satisfy the producer licensure requirement of A.R.S. 20-3202.
- D) Wrong because the required line is the life line, not accident and health; settlement brokers deal in life insurance contracts.
Memory hook
Settlement broker = licensed producer with a life line.