Annuities✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
What licensing requirement applies to a producer selling variable annuities?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
A variable annuity is both an insurance product and a security because the owner directs premiums into separate investment accounts and bears the investment risk. Selling it therefore requires a life insurance license AND securities registration — typically a FINRA Series 6 or 7. The product must also be offered with a prospectus. This dual-licensing requirement is a defining difference from fixed annuities.
Why the other options are wrong
- B) Property/casualty licensing has no relevance to annuity sales; variable annuities require life authority and securities registration.
- C) The life insurance license alone is insufficient because the variable annuity's separate accounts make it a security subject to federal securities regulation.
- D) Variable annuities are insurance-company products, not bank products, and they are subject to both state insurance and federal securities laws.
Memory hook
Variable annuity = insurance ID card plus a securities badge. Two licenses, one product.