A viatical settlement broker may NOT

• A. make any transactions before being approved for a license
• B. renew license annually
• C. advertise services before licensing
• D. obtain a license before transacting

Answer: (A)

Licensing is the gate before any activity. A viatical settlement broker must be licensed and in good standing before they can engage in negotiating or arranging viatical settlements. This protects consumers by ensuring the person handling settlements has met rules, background checks, and education requirements. Because of that, they may not conduct any transactions prior to license approval.

Once licensed, renewing the license each year is a normal requirement to maintain authorized status, and advertising or marketing services typically happens after licensing. While advertising before licensing is generally restricted, the fundamental, clear prohibition in this scenario is engaging in any transactions before a license is granted.