Question 25

Life settlement contracts allow payment of referral fees only to the life settlement broker.

In the context of a life settlement contract, payment of referral or finders fees is exclusively permitted to life settlement brokers, as they are the professionals licensed to facilitate these transactions.

A) owner's physician.

Paying a referral or finders fee to the owner's physician is not permitted under the regulations governing life settlement contracts. Physicians are typically not involved in the broker activities necessary for such contracts and thus do not have the authority to receive these fees.

B) insurance consultant.

An insurance consultant does not qualify to receive referral or finders fees in the context of life settlement contracts. While they may provide advice related to insurance policies, they are not recognized as brokers authorized to facilitate life settlements, thereby excluding them from receiving such payments.

C) owner's accountant.

Similarly, the owner's accountant is not allowed to receive referral or finders fees related to life settlement contracts. Accountants provide financial advice and services but do not engage in brokerage activities pertinent to life settlements, making them ineligible for such fees.

D) life settlement broker.

Life settlement brokers are specifically authorized to receive referral or finders fees under the life settlement contract regulations. These professionals are licensed and trained to facilitate transactions between policyholders and buyers, ensuring compliance with legal standards.

Conclusion

The correct answer is D, as life settlement brokers are the only individuals authorized to receive referral or finders fees in this context. All other options, including the owner's physician, insurance consultant, and owner's accountant, do not meet the qualifications necessary to receive such payments, which is crucial for maintaining regulatory compliance in life settlement transactions.