State RegulationsMA specificDifficulty 2/5
Under Massachusetts law, who must be licensed as a life settlement broker before negotiating a life settlement on behalf of a policyowner?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Massachusetts treats life settlement brokering as its own licensed activity: M.G.L. c. 175, § 213 governs life settlement broker licensing within the life settlement framework of c. 175, §§ 212–223E. A person who, for compensation, negotiates a life settlement on behalf of a policyowner must hold that specific license; an ordinary producer license alone does not authorize that role.
Why the other options are wrong
- A) The ordinary producer license does not by itself authorize settlement brokering; M.G.L. c. 175, § 213 requires the specific life settlement broker license.
- C) A provider's in-house counsel represents the acquiring side, not the policyowner; the broker's license exists precisely for the compensated role of negotiating for the owner.
- D) A physician intermediary is not a licensing category for settlements; the regulated actor is the compensated broker under M.G.L. c. 175, § 213.
Memory hook
Settlement brokering takes its own license — the settlement-broker credential, not the everyday producer card.