State RegulationsNY specificDifficulty 2/5
A licensed New York life insurance agent wants to sell variable life insurance policies. What additional qualification must the agent satisfy?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Variable life policies are both insurance contracts and securities, so their sale is jointly regulated: New York regulates variable products through the Superintendent under Reg 47 (11 NYCRR Part 50.3), Reg 77 (11 NYCRR Part 54.3), and N.Y. Ins. Law §4240, while the securities side requires registration with the securities regulator. An insurance license alone does not authorize a New York agent to sell variable products.
Why the other options are wrong
- A) There is no standalone variable-products license issued by the Department of Financial Services; the missing piece is securities registration.
- B) Continuing education credits apply to license renewal generally; they do not supply the securities registration variable products require.
- C) An appointment authorizes an agent to act for an insurer; it does not supply the securities registration needed for variable products.
Memory hook
Variable product, double passport: state license plus securities registration.