License & Permit
Life Settlement Broker Bond
A license bond some states require of brokers and providers who arrange the sale of life insurance policies to third parties.
- Required by
- State insurance departments
- Bond amount
- Set by whoever requires the bond. We confirm it.
What this bond guarantees
The bond runs to the state and lets the insurance commissioner recover for residents harmed by the broker's errors, failures to act, fraud, or unfair practices. A policy owner who is harmed files through the commissioner. In Vermont, the amount scales with the broker's yearly settlement volume in the state.
Who needs it
- Life settlement brokers
- Life settlement providers
- Viatical settlement brokers
What the underwriter looks at
- Annual settlement volume in the state
- Personal credit
- License and complaint history
Requirements vary by state and by who asks for the bond. Send us the request you received and we will confirm exactly what it calls for.
Common questions
How much is the bond?
It varies by state. Vermont sets broker bonds from $25,000 to $100,000 based on yearly volume, and Utah requires $250,000 of financial responsibility for providers.
Is a viatical settlement bond the same thing?
Largely, yes. Viatical settlement is the older term, and many states now regulate both under one life settlement law.
Can I use a letter of credit instead?
Some states allow it. Vermont accepts a surety bond or a letter of credit approved by the commissioner.