A securities license is required for a life insurance producer to sell

• A. Fixed annuities
• B. Variable Life Insurance
• C. Whole Life Insurance
• D. Term Insurance

Answer: (B)

The key idea is that a securities license is needed when the product being sold has an investment component that qualifies as a security. Variable life insurance fits this because its cash value is allocated to a separate account and its returns depend on investment performance. That investment linkage means it’s treated as a security, so a securities license is required in addition to the life insurance license.

Fixed annuities, while they involve guarantees and come under insurance regulation, are not securities because their returns are fixed by the insurer. Whole life and term insurance are traditional life policies without an investment component tied to market performance, so they’re handled as insurance products and do not require a securities license.

So, variable life insurance is the product that necessitates having a securities license.