What is a Viatical Settlement Broker prohibited from doing?

A Viatical Settlement Broker is specifically prohibited from engaging in any transactions before they have received the proper license. Licensing is a crucial requirement in the viatical settlement industry, ensuring that brokers have the necessary knowledge and adhere to state regulations, protecting consumers in what can be a complex financial transaction. This requirement is in place to ensure that brokers are compliant with the laws governing viatical settlements, which often involve sensitive financial and health-related information.

The other options highlight practices that can violate general regulations in financial advising or insurance but are not necessarily specific prohibitions placed on viatical settlement brokers themselves. Advising clients on investment strategies can fall under different financial services law and may require additional licensing but is not an inherent prohibition. Providing life insurance quotes requires appropriate licensing specific to life insurance rather than viatical settlements. Working over the phone entails certain compliance rules, especially related to documentation, but does not outrightly prohibit brokers from conducting business in this manner if other legal requirements are met.

Thus, the requirement that brokers must be licensed before conducting transactions stands out as a clear and explicit prohibition tied specifically to their role in the market.