To sell variable contracts, an agent must have which license?

To sell variable contracts, an agent must have which license?

• A. A Series 6 or 7 license
• B. Life license only
• C. Health license only
• D. Adjuster license

Answer: (A)

Variable contracts are securities products because their cash value and benefits depend on the performance of investments in a separate account. Because of that, selling them falls under securities regulation, not just insurance regulation. A producer must be licensed to transact securities in order to offer these products. The appropriate licenses are the Series 6 or Series 7, which authorize selling investment products and variable contracts. Series 7 provides broader securities authority, while Series 6 specifically covers mutual funds and variable products; either license satisfies the requirement to sell variable contracts. A life license alone doesn’t cover the securities transactions, and health or adjuster licenses do not apply to selling these investment-based contracts.

Variable contracts are securities products because their cash value and benefits depend on the performance of investments in a separate account. Because of that, selling them falls under securities regulation, not just insurance regulation. A producer must be licensed to transact securities in order to offer these products. The appropriate licenses are the Series 6 or Series 7, which authorize selling investment products and variable contracts. Series 7 provides broader securities authority, while Series 6 specifically covers mutual funds and variable products; either license satisfies the requirement to sell variable contracts. A life license alone doesn’t cover the securities transactions, and health or adjuster licenses do not apply to selling these investment-based contracts.