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State RegulationsVA specificDifficulty 2/5

A business entity wants to operate as a viatical settlement broker in Virginia. Beyond paying the required fees, what must the entity do before the Commission will license it?

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Answer & full 3-part explanation (select an option above, or peek)

Why A is correct

Va. Code § 38.2-1865.1 requires a business entity applying to act as a viatical settlement broker to pay the prescribed fee and to designate a licensed viatical settlement broker, who may be an employee, officer, director, manager, member, or partner, to be responsible for the entity's compliance with Virginia insurance laws and regulations. The designation gives the Commission a named, licensed individual answerable for the entity's conduct, a structure the Virginia Bureau of Insurance oversees.

Why the other options are wrong

  • B) No closing-speed guarantee is part of the entity licensing requirement.
  • C) The statute imposes no bond equal to policy face amounts as a condition of entity licensure.
  • D) Provider approvals are commercial arrangements, not a precondition of the entity's license.

Memory hook

An entity brokers viaticals only through a named licensed human.

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