State RegulationsNY specificDifficulty 1/5
Variable life insurance and variable annuity contracts sold in New York are regulated by:
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Variable products are dually regulated: as securities by the federal securities authorities (the SEC and the self-regulatory organization formerly known as NASD), and as insurance by the New York Superintendent of Financial Services under N.Y. Ins. Law §4240, Reg 47 (11 NYCRR Part 50.3), and Reg 77 (11 NYCRR Part 54.3). Neither regime excludes the other. Practically, a New York agent handling variable products answers to both sets of regulators.
Why the other options are wrong
- B) Federal securities authority is not exclusive; New York regulates variable contracts under N.Y. Ins. Law §4240, Reg 47 (11 NYCRR Part 50.3), and Reg 77 (11 NYCRR Part 54.3).
- C) DFS is not exclusive; variable products are also securities subject to the SEC and the self-regulatory organization formerly known as NASD.
- D) Variable products are not exempt; they are dually regulated as both securities and insurance.
Memory hook
Two badges: securities regulators and DFS both supervise variable products.