State RegulationsPA specificDifficulty 2/5
A Pennsylvania producer holds a life insurance license but no securities registration, and sells a variable life policy anyway. Under 40 P.S. § 506.2 and 31 Pa. Code 82.14, the most direct regulatory problem is that the producer:
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
The variable life rules — including 40 P.S. § 506.2 and 31 Pa. Code 82.14 — confine the sale of variable life to producers who hold both the required insurance authority and the required securities qualification. A producer who sells without that authority has marketed a product she was not licensed to sell, and the Pennsylvania Insurance Department can discipline her license; the appointing insurer also faces exposure for the unauthorized placement. Internal approval cannot cure a missing legal credential.
Why the other options are wrong
- A) The life license does not blanket-cover variable products; the variable life rules impose their own qualification requirements.
- B) Internal product approval is a company matter, not the regulatory authorization that 31 Pa. Code 82.14 demands.
- C) The rules reach the producers who sell variable life in the field, not merely the home office.
Memory hook
No securities registration, no variable sale — internal sign-offs don't substitute.