ProductsQuestion 27 of 110
A representative who wants to sell variable life insurance must hold:
a.Only a state insurance license, because the product is an insurance contract
b.Only a securities registration, because the separate account is registered with the SEC
c.Neither, if the policy is sold through an insurance agency
d.Both a state insurance license and the appropriate securities registration
Explanation
Variable products are dual-regulated: the insurance element requires a state license, while the separate account interest is a security requiring FINRA registration through a broker-dealer. Holding just one credential is insufficient regardless of where the sale takes place. This is a central reason the Series 6 exists as a limited representative registration.
Law Reference: Securities Act of 1933Practice all 110 questions free — no signup required.
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