What must a viatical settlement broker do before making any transactions?

A viatical settlement broker must obtain a license before engaging in any transactions related to viatical settlements. This requirement ensures that the broker has met the necessary educational, ethical, and professional standards established by state regulatory bodies. Licensing typically involves passing an examination and fulfilling other criteria set forth by the state, which serves to protect consumers by ensuring that brokers are qualified to provide such specialized financial services.

The licensing requirement also helps in maintaining a level of trust within the industry, allowing individuals seeking viatical settlements to have confidence that they are dealing with a legitimate and knowledgeable professional. While other actions, such as completing a training program or registering with the state, may be important for operational compliance, the foundational step that enables a broker to legally perform their duties is obtaining that license.