What licensing requirements must a variable life insurance agent meet?

A variable life insurance agent must meet specific licensing requirements to engage in the sale of this type of financial product. To sell variable life insurance, an agent is required to hold both a life and variable contract agent license, which permits the agent to handle insurance products that combine elements of both life insurance and securities. Additionally, a broker-dealer appointment is necessary because variable life insurance policies are considered a type of security due to their cash value and investment component.

The necessity of the broker-dealer appointment is crucial for compliance with Securities and Exchange Commission regulations, which govern the sale of variable products. This requirement ensures that the agent is properly trained and authorized to discuss investment options and understand financial markets linked to these insurance products.

This multi-faceted licensing requirement is in place to protect consumers by ensuring that agents are well-versed in both insurance and securities laws, thus providing informed financial advice and maintaining regulatory compliance.