Health and Life Insurance

Answer: A - With only a state insurance license, you cannot sell variable universal life insurance policies. In order to sell variable universal life insurance policies, you must pass the NASD exam and then register to sell securities. The variable life insurance is considered to have a high investment risk to the policy owner and very few guarantees; therefore, the government considers variable contracts to be securities. Variable life insurance policies are regulated by the Securities and Exchange Commission (SEC), the National Association of Securities Dealers (NASD) and other federal entities as well as the Securities Acts of 1933 and 1934 and the Investment Company Act of 1940.