Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
Because the cash values in a variable life insurance policy are invested in separate accounts whose performance is not guaranteed, variable life is regulated as:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Variable life and variable annuities are both insurance products and securities. Because the owner bears the investment risk, selling them requires a life insurance license PLUS securities registration (typically FINRA Series 6 or 7), and the products must be offered with a prospectus. The separate account is not part of the insurer's general account.
Why the other options are wrong
- B) Variable life is never a pure insurance product; the securities element triggers dual regulation.
- C) Separate-account performance is not guaranteed; only general-account products carry insurer guarantees.
- D) A life-only license is insufficient; securities registration is required.
Memory hook
Variable = insurance with a stock ticker. Two hats required: life license and securities registration, plus a prospectus.