Which entities regulate variable annuities?

Variable annuities are financial products that combine features of insurance and investment, leading to a unique regulatory framework. The regulation of variable annuities primarily falls under the jurisdiction of the Office of Insurance Regulation in the state and the Securities and Exchange Commission (SEC) at the federal level.

The Office of Insurance Regulation oversees the insurance components of variable annuities, ensuring that the products comply with state insurance laws and protecting consumers in the insurance market. On the other hand, the SEC regulates the investment aspects of variable annuities, as they are considered securities due to their investment components. This dual regulation by state and federal agencies ensures comprehensive oversight of both the insurance and investment aspects, providing a safeguard for consumers.

Option B accurately identifies these two regulatory bodies responsible for overseeing variable annuities, reflecting the importance of both insurance regulation and securities regulation in this context.