Beehive State regulators are warning companies in the secondary market for life insurance policies to be careful about how they represent the transactions.

In Utah, life settlement transactions between companies and investors are securities, according to the Utah Division of Securities.

The Utah division has issued an order to show cause against Life Partners Holdings Inc., Waco, Texas, and a Life Partners representative in Nevada.

The Nevada representative told mortgage brokers at a mortgage seminar in Utah that they did not have a securities license to sell investments in life settlements to consumers, Utah officials say.

But, in Utah, life settlements are securities, and brokers involved in selling life settlements investments do need securities licenses, officials say.

CORRECTION: An earlier version of this article gave an incorrect description of how Utah applies securities laws to life settlement transactions.