Final answer:
A person licensed to negotiate life settlement contracts is known as a life settlement broker or life settlement provider. They are responsible for representing policyholders and are required to be knowledgeable and adhere to state regulations through a licensing process.
Step-by-step explanation:
The individual licensed to negotiate a life settlement contract is typically called a life settlement broker or a life settlement provider.
A life settlement broker represents policyholders and works on their behalf to negotiate the sale of a life insurance policy to a third party for more than its cash surrender value but less than its net death benefit.
The life settlement provider is the third party that buys the life insurance policies. They hold the policy, continue to pay the premiums, and will receive the death benefit when the insured person passes away.
The rigorous licensing process ensures that the individual is knowledgeable and follows the regulations and best practices in the industry. Licensing requirements for life settlement brokers and providers vary by state but generally include passing an examination and fulfilling continuing education credits.