State RegulationsVA specificDifficulty 2/5
A producer holds a Virginia life insurance license and wants to begin selling variable annuities. What does she need before she may lawfully sell them?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Because variable annuities are both securities and insurance products, a Virginia producer needs credentials on both sides: the federal securities registration appropriate to the products and the variable-contracts authority under Virginia's framework, reflected in Va. Code § 38.2-3113 and rules such as 14 VAC 5-20-80. Her life license is the foundation but is not sufficient by itself. Selling variable products without the full combination exposes the producer to action on both the securities and the insurance side.
Why the other options are wrong
- B) The life license alone does not authorize variable sales; the separate-account features of variable annuities demand the additional securities registration and Virginia variable-contracts authority under Va. Code § 38.2-3113.
- C) Virginia does impose its own requirements for variable contracts; the securities registration covers only the federal side of the dual regulation.
- D) The producer does not replace her life license; she adds the variable-contracts authority on top of the existing life licensure.
Memory hook
Life license plus securities registration plus variable authority — all three before the first variable sale.