State RegulationsPA specificDifficulty 2/5
A producer who wants to market variable life insurance in Pennsylvania must satisfy which regulatory requirements?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Variable life is a hybrid product: it is insurance regulated by the Pennsylvania Insurance Department under 31 Pa. Code 82.1 and the related variable life rules, and its separate-account securities dimension is regulated by federal securities authorities such as the SEC and FINRA. A producer therefore needs the state insurance credential with variable authority and must also hold the corresponding securities registration. Neither requirement alone authorizes the sale.
Why the other options are wrong
- A) A life license alone misses the securities dimension; 31 Pa. Code 82.1 sits alongside federal securities registration, not instead of it.
- C) Federal registration does not displace state insurance regulation; both systems apply simultaneously to variable life.
- D) Home-office supervision is an internal matter; selling variable life without the state license and securities registration violates both regimes.
Memory hook
Variable life: two doors to open — insurance license and securities registration.