Certified Financial Consultant (CFC) Practice Exam

What must an agent receive to sell variable life insurance policies?

1. Only a life insurance license

2. FINRA registration

3. A securities title

4. All of the above

The correct answer is: All of the above

To sell variable life insurance policies, an agent must hold a life insurance license due to the nature of life insurance products, which requires understanding the insurance aspects and relevant state regulations. Additionally, variable life insurance policies include components that are considered securities, as they have an investment component linked to market performance. Therefore, to handle these products, agents must also obtain FINRA registration, which is a requirement for securities transactions and ensures adherence to regulations governing the sale of investment products. The need for a securities title further emphasizes the educational and regulatory compliance necessary for selling products that involve both insurance and investment elements. Hence, all of these requirements are crucial: having a life insurance license for the insurance part of the product, FINRA registration for the securities aspect, and a securities title to officially recognize the agent’s qualifications to sell investment products. This combination of credentials ensures that agents are adequately prepared and legally allowed to offer variable life insurance policies, aligning with both the insurance and investment regulatory frameworks.