State RegulationsMA specificDifficulty 2/5
A Massachusetts life producer wants to add variable annuities to his practice. What is required before he may solicit them?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Because a variable annuity is both a security and an insurance product, M.G.L. c. 175, § 132F et seq. requires the producer to hold the state life line authority, and the federal securities framework requires the corresponding registration before the producer may solicit variable products. The producer's existing life license is necessary but not sufficient: without the securities registration he may not present or sell the variable contract. Both credentials together create the lawful selling posture.
Why the other options are wrong
- A) The life license alone does not authorize securities sales; the federal securities registration is a prerequisite for variable annuity solicitation under M.G.L. c. 175, § 132F et seq.
- B) Notice to the Division does not substitute for the required credentials; the securities registration requirement stands regardless.
- C) There is no separate state annuity examination; the requirement is the federal securities registration alongside the life license.
Memory hook
Life license plus the federal securities registration — both before the first variable sale.