State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 3/5
In California, a person who, for compensation, negotiates a life settlement between a policyowner and a buyer must:
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
In California, a life insurance producer who has been licensed as a life agent for at least one year is deemed to meet the life settlement broker licensing requirements under CIC Section 10113.2(b)(1)(D)(i). The producer must notify the Commissioner within 10 days of beginning to operate as a broker and pay an $85 fee. A separate life settlement broker license is NOT required for a qualifying life agent.
Why the other options are wrong
- A) A life agent licensed for at least one year is deemed to meet the broker licensing requirements under CIC §10113.2(b)(1)(D)(i); a separate broker license is not required, only a 10-day notice to the Commissioner and the $85 fee.
- C) Life settlement brokering is regulated by the California Insurance Commissioner under the CIC, not by the SEC; no broker-dealer registration is required for this activity.
- D) Attorneys may negotiate life settlements under certain conditions (CIC §10113.2(b)(1)(B)), but a life agent is not required to be an attorney to act as a broker.
Memory hook
Selling a used policy needs its own license: life settlement broker. A life license does not cover it.