Connecticut Life Producer Practice exam

What qualifications must someone hold to sell variable life insurance products?

1. A state-issued license only

2. A securities license and a state license

3. Registration with SEC only

4. A college degree in finance

The correct answer is: A securities license and a state license

To sell variable life insurance products, an individual must obtain both a securities license and a state-issued insurance license. This requirement arises because variable life insurance is considered a hybrid product that combines elements of life insurance with an investment component tied to the performance of underlying investment options, such as stocks or bonds. Thus, it falls under both insurance regulations and securities regulations. The securities license, often obtained through passing the Series 6 or Series 7 exam, enables the individual to sell investment products, which is crucial for variable life insurance. In addition to this, the state insurance license confirms that the person is authorized to sell life insurance within their state. A state-issued license alone does not suffice, as the variable component requires knowledge and compliance with securities laws. Similarly, being registered with the SEC is not sufficient, as it does not encompass the necessary insurance licensing component. Lastly, while a college degree in finance could be beneficial, it is not a mandatory qualification for selling variable life insurance products.