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?

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.

Why B is correct

A.R.S. 20-3202 requires a life settlement broker to be an Arizona-licensed producer holding a life line of authority. The life line makes sense because brokering settlements requires expertise in life insurance products and subjects the broker to producer discipline.

Why the other options are wrong

• A) The required line of authority is life, not property and casualty.
• C) A title insurance license is an unrelated line of authority.
• D) Provider registration does not substitute for the broker licensure requirement of A.R.S. 20-3202.

Memory hook

Settlement broker = producer + life line.