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One rule, 2 ways the exam asks it. Same knowledge point, different phrasing — work through all of them, because the exam rarely reuses the wording.

State RegulationsMA specificDifficulty 1/5

Under Massachusetts law, who must be licensed as a life settlement broker?

Select an option to reveal the answer and the full 3-part explanation — free, no signup.

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

Why B is correct

The Massachusetts life settlement framework — M.G.L. c. 175, § 212 (definitions) and M.G.L. c. 175, § 213 (licensing) — licenses the life settlement broker: the person who, for compensation, solicits or negotiates a life settlement on behalf of an owner seeking to sell an existing policy to a third-party provider. The license exists because brokering policy sales is a distinct regulated activity, separate from ordinary life insurance production, with its own duties to the selling policyowner.

Why the other options are wrong

  • A) Surrendering one's own policy to the insurer is a contractual act with the insurer, not life settlement brokering under M.G.L. c. 175, § 213.
  • C) A certifying physician supplies medical information; the broker role belongs to whoever, for compensation, shops the policy to buyers.
  • D) Life settlement authority is not automatic with a life license; the separate broker licensing requirements of M.G.L. c. 175, § 213 apply.

Memory hook

Paid to shop a policy to strangers? That's a life settlement broker — licensed under § 213.

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?

Select an option to reveal the answer and the full 3-part explanation — free, no signup.

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.

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