Viatical Settlement and Life Settlement Broker Information
Under Louisiana law what is commonly referred to as life settlement contracts falls within the definition of a viatical settlement. There is no distinction between the licensing requirements for life settlement business and those for viatical settlement business.
In Louisiana there are two ways for a person to act as a viatical settlement broker:
- The first is to be licensed as a viatical settlement broker
- The second is to be licensed as an insurance producer for the line of life insurance and to notify the Department of Insurance of intent to act as a viatical settlement broker in compliance with Regulation 58.
If a business entity is acting as a viatical settlement broker (regardless of whether that authority is granted as a licensed viatical settlement broker or as a life insurance producer who has notified the Department of their intent to act as a viatical settlement broker) all of the officers, directors and employees of that business entity are empowered to conduct viatical business on behalf of that business entity without an individual license. Only if one of the individuals acts as a viatical broker independent of the business entity is an individual license required.
To obtain a viatical settlement broker license an individual or business entity must complete and submit the Application for Viatical Settlement License along with the appropriate fee. A viatical settlement broker license expires March 1 of each year and may be renewed at the time of the filing of the Annual Report for Viatical Settlement License by indicating the desire to renew the license and payment of the renewal fee. The annual report must be filed by March 1 of each year regardless of whether or not there are any transactions to report and regardless of whether or not the viatical settlement broker wishes to renew the license.
An insurance producer licensed for the line of life insurance who wishes to act as a viatical settlement broker must notify the Department of Insurance of this intent in writing. The notice must include the name and Louisiana producer license number of the licensee and must be signed by the licensee or, if the licensee is a business entity, an officer of the licensee. There is no fee associated with this notification and there is no renewal separate from the renewal of the insurance producer license. An insurance producer acting as a viatical settlement broker is required to file the Annual Report for Viatical Settlement License no later than March 1 of each year. The annual report must be filed by March 1 of each year regardless of whether or not there are any transactions to report. If an insurance producer wishes to discontinue acting as a viatical settlement broker he must notify the Department of that wish in writing.