Which action is restricted for a viatical settlement broker prior to licensing?

Which action is restricted for a viatical settlement broker prior to licensing?

• A. Make any transactions before being approved for a license
• B. Solicit viatical settlements
• C. Disclose all fees up front
• D. Provide counseling to clients

Answer: (A)

Before a viatical settlement broker is licensed, they may not participate in the brokerage process. The licensing requirement exists to ensure anyone handling settlements meets standards and can fulfill fiduciary duties. Therefore, engaging in any transaction—negotiating, signing, or closing a viatical settlement—before license approval is restricted. This broad prohibition on actually handling deals is the strongest restriction among the options. Soliciting or counseling and fee disclosures touch on regulated activities, but the fundamental limit before licensing is that no transaction may be executed without proper licensure.

Before a viatical settlement broker is licensed, they may not participate in the brokerage process. The licensing requirement exists to ensure anyone handling settlements meets standards and can fulfill fiduciary duties. Therefore, engaging in any transaction—negotiating, signing, or closing a viatical settlement—before license approval is restricted. This broad prohibition on actually handling deals is the strongest restriction among the options. Soliciting or counseling and fee disclosures touch on regulated activities, but the fundamental limit before licensing is that no transaction may be executed without proper licensure.