State RegulationsMA specificDifficulty 2/5
A Massachusetts producer wants to solicit variable life insurance. Which licensing posture is correct?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Variable life is both an insurance product and a securities product, so Massachusetts law — M.G.L. c. 175, § 132F et seq., with the solicitation rules at 211 CMR 95 — requires the producer to hold the state life line authority, and the federal securities framework requires the corresponding securities registration before the producer may sell it. Neither credential substitutes for the other: the state license covers the insurance side, the federal registration covers the securities side, and both apply to every variable life solicitation.
Why the other options are wrong
- A) The life license alone does not reach the securities dimension of variable life; the federal securities registration is additionally required under M.G.L. c. 175, § 132F et seq.
- B) Variable life remains life insurance regulated by the Massachusetts Division of Insurance under 211 CMR 95, so a securities registration alone is not enough.
- C) Home-office supervision does not replace field licensing; the soliciting producer must hold both required credentials.
Memory hook
Two keys, one door: the state life line and the federal securities registration.