Certified Financial Consultant (CFC) Practice Exam

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Prepare for the Certified Financial Consultant Exam. Enhance your understanding with detailed questions, hints, and explanations. Boost your confidence for the CFC test!

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What is NOT a requirement for an agent to sell variable life insurance policies?

Health insurance license
Life insurance license
FINRA registration
Securities title

The correct answer is: Health insurance license

To sell variable life insurance policies, agents must comply with several legal and regulatory requirements that ensure they are adequately equipped to handle these complex financial products. A health insurance license is not relevant to the sale of variable life insurance. This type of insurance falls under life insurance regulations, which means that the agent needs a life insurance license, as it directly pertains to the policies being sold. Moreover, variable life insurance policies combine features of both life insurance and investment products, and thus agents must also be registered with FINRA (Financial Industry Regulatory Authority) to sell the securities component embedded in these policies. Additionally, a securities title is required to further validate the agent's ability to advise clients legitimately on investment options linked to the policy. In summary, a health insurance license does not apply to the sale of variable life insurance policies, highlighting that it is indeed not a requirement compared to the other options that are pertinent to the nature of variable life insurance products.