Licensing and Appointment Requirements
To sell variable life insurance policies, an agent must receive a valid insurance license in the state where they conduct business, issued by the state department of insurance. Beyond a general life insurance license, the agent must also receive a separate appointment or authorization from the specific insurance company that issues the variable life product. This appointment formally binds the agent to represent that insurer.
More from this site
Keep reading the latest coverage
Variable Insurance Specific Training
Variable life insurance combines death benefit protection with an investment component, which subjects the policy to securities regulations. Consequently, the agent must receive training and pass examinations related to both insurance and securities, often requiring a Series 6 or Series 7 financial securities license in addition to the state insurance license. The insurer must provide product-specific training that covers the policy's investment options, fees, and risks before the agent can offer it to clients.
Regulatory Compliance and Continuing Education
Before transacting, the agent must receive and acknowledge the insurer's policy illustrations, disclosure documents, and suitability guidelines. Regulatory bodies require that the agent complete continuing education credits regularly to maintain the authority to sell variable products. Failing to receive and adhere to these materials can result in regulatory penalties for both the agent and the insurer.
Summary of Required Receipts
| Requirement | Details |
|---|---|
| State Insurance License | Life insurance license issued by the state department of insurance. |
| Insurer Appointment | Formal authorization from the variable life insurance carrier. |
| Securities License | Series 6 or Series 7 registration. |
| Product Training | Insurer-provided training on the specific variable life policy. |
| Disclosure Documents | Received and acknowledged policy illustrations and risk disclosures. |