As a general rule of thumb, "compensation follows the license." If a producer wants his company paid, then the license or applicable authority must be issued to the entity. If a producer wants to be paid as an individual, then the license or applicable authority must be issued to the individual.
Licensing for life settlement brokers can be confusing, as there are often subtle nuances associated with each state's requirements to obtain an individual and/or entity license.
Producer licenses alone in almost all states are NOT sufficient to act as a broker of life settlements. The concept of "Producer Authority" in the life settlement marketplace is misleading and overstated. Some type of "affirmative step" must be taken (for example, complete/submit a form or application to the applicable Department of Insurance or equivalent governing body) to obtain a separate license or to add the authority to existing producer licenses. [Producer licenses are sufficient in Maine and Utah for life settlements].
Please access the chart below which highlights applicable state law, the term used and the general broker/advisor license requirements for each state.
Click here to view our state license chart.