A licensed New York life agent wants to sell variable life insurance and variable annuities. Which statement is correct?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Variable life insurance and variable annuities are securities as well as insurance contracts, so selling them requires securities registration in addition to a life agent license. New York regulates variable contracts under N.Y. Ins. Law §4240 and its regulations, including Reg 47 (11 NYCRR Part 50.3) and Reg 77 (11 NYCRR Part 54.3), while the SEC and the securities self-regulatory authority (formerly NASD, now FINRA) police the securities side. An agent who sells variable products without the required registration faces discipline from both the securities regulators and the Department of Financial Services.
Why the other options are wrong
- A) The life agent license alone does not authorize variable product sales; securities registration is also required because variable products are securities.
- B) Agents can sell variable products when they hold the required securities registration; there is no direct-only restriction.
- D) The Superintendent of Financial Services does not approve each individual sale; DFS regulates variable contracts under §4240 and its regulations.
Memory hook
Variable products need a securities registration on top of the life license.