This page contains a link to the required application forms for the licensing of Life Settlement Brokers and Firms, as well as Frequently Asked Questions.
As of November 1, 2010, legislation became effective that requires the licensing of Life Settlement Brokers and Providers. The following relates to the licensing of Brokers.
Broker application materials are available at our Web site. Individuals will use the Application for Life Settlement Individual Broker License located at http://oci.wi.gov/ociforms/11-049.pdf (opens in new window). Business entities will use the Application for Life Settlement Business Entity Broker License located at http://oci.wi.gov/ociforms/11-042.pdf (opens in new window). The fee schedule and all instructions are included on the application. Provider application materials are located in the Company section of our Web site.
Business entities must identify one Wisconsin-Licensed Designated Representative on their application.
Frequently Asked Questions
- Who needs to have a Life Settlement Broker License?
- How often and when does a Life Settlement Broker License need to be renewed?
- Can I reinstate a Life Settlement Broker License after it lapses for nonpayment of the renewal fee?
- Is training required?
- When does the initial training have to be completed?
- When does the additional training have to be completed?
- What topics must be included in the mandatory initial training?
- Does the training have to be approved for continuing education?
- Where can I find a list of approved training courses?
- How do providers obtain approval for courses?
- How are credits reported to OCI?
- Are brokers required to submit policy forms for approval?
- Are advertisements required to be submitted for approval?
No person may act as a provider or broker for an owner without holding a license from the Commissioner. However, a licensed attorney or a certified public accountant who is retained to represent the owner and whose compensation in not paid directly or indirectly by the provider or purchaser may negotiate life settlement contracts on behalf of the owner without having to obtain a license as a broker. [s. 632.69 (2) (a), Wis. Stat.]
Life Settlement Broker Licenses (Individual and Firm) are for one year, expiring on July 1st of each year. Failure to pay the fee by the renewal date shall result in the automatic revocation of the license [s. 632.69 (2) (j), Wis. Stat.]
No. Licenses not renewed prior to July 1st of each year are automatically revoked. Individuals and business entities whose license was revoked for failure to pay the renewal fee must submit an application for new license along with the appropriate licensing fee. [s. 632.69 (2) (j), Wis. Stat.]
Yes. An individual must complete an initial training course of not less than 8 hours and an additional 4 hours every 24 months thereafter. [632.69 (3) (e), Wis. Stat.]
Individuals holding a Wisconsin Viatical Settlement Broker License as of November 1, 2010, must complete an initial training course of not less than 8 hours within 6 months after the November 1, 2010, implementation date. Individuals applying for a Life Settlement Broker License on or after November 1, 2010, must complete an initial training course of not less than 8 hours prior to applying for the license. [s. 632.69 (2) (g) 7, Wis. Stat.]
Individual Life Settlement Brokers must complete an additional 4 hours every 24 months thereafter. Administrative rules have been introduced that will require brokers to complete at least 2 hours every year to maintain compliance with the renewal process. [s. 632.69 (3) (e), Wis. Stat.]
Courses must be approved prior to completion and shall include all of the following topics, at a minimum [s. 632.69 (3) (d), Wis. Stat.]:
- Legal structuring of life settlements
- Legal relationships among the parties to a life settlement
- Required disclosures and privacy requirements
- Ethical considerations in selling, soliciting, and negotiating life settlements
- Contract requirements
- Licensing requirements
- Additional matters as determined by the Commissioner - none have been identified at this time
Yes, courses must be approved as continuing education by the Commissioner. However, s. 632.69 (3) (c), Wis. Stat., provides that the satisfaction of the training requirements of another state that are substantially similar to the requirements of Wisconsin, and are approved by the Commissioner, satisfy the training requirements for Wisconsin.
A substantially similar course would be a course approved by another insurance department for at least the minimum number of credit hours and includes the topics outlined in s. 632.69 (3) (d), Wis. Stat. Questions regarding whether a course is substantially similar should be directed to email@example.com and include a copy of the course outline, documentation to support it has been approved by another insurance department, the number of credits for which the course is approved, and the name and contact information of the continuing education provider offering the course.
A list of Wisconsin approved Life Settlement training courses is available on the Web site of the state's authorized vendorSirconat www.sircon.com/wisconsin.
Education providers must become approved as continuing education providers and submit courses for approval. Contact Pearson VUE at (800) 274-4743 to obtain application materials, or visit their website at Pearson VUE.
For individuals currently licensed in Wisconsin, providers of a Wisconsin-approved training course must electronically bank completion information to OCI through Sircon, the state's authorized vendor.
Applicants for a new individual Life Settlement Broker licensethat do not currently hold another license type in Wisconsinshould request the continuing education provider to submit documentation supporting completion of the initial training course directly to OCI. Continuing education providers requiring instructions on how to submit this information directly to OCI should contact OCI at firstname.lastname@example.org.
Yes, if not already filed with OCI by the life settlement provider. Only disclosure forms to owners need to be filed. No other type of form a broker would use is subject to this requirement. Information on how to file forms is available on our Web site at: http://oci.wi.gov/company/forms-policy.htm