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

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards
From $24.99Unlock all

Study for the Louisiana Series 103 – Life, Health, and Accident or Sickness Insurance Exam. Familiarize yourself with key concepts through engaging questions and explanations. Prepare effectively for your exam!

Multiple Choice

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

Explanation:
The main idea is that securities licensing is needed for life insurance products that involve an investment component and are treated as securities. Variable life insurance has its cash value tied to investments in separate accounts, and the death benefit can vary based on investment performance. Because of this investment risk and the security-like nature of the product, selling variable life requires registration as a securities professional (such as a Series 6/7-type license) in addition to any life insurance licenses. Fixed-life products like term life, whole life, and group life do not include an investment component tied to market performance. They provide a fixed death benefit and have no separate accounts, so they aren’t considered securities. Therefore, they generally don’t require a securities license to sell. So, the product that necessitates a securities license is the one with an investment component—the variable life insurance.

The main idea is that securities licensing is needed for life insurance products that involve an investment component and are treated as securities. Variable life insurance has its cash value tied to investments in separate accounts, and the death benefit can vary based on investment performance. Because of this investment risk and the security-like nature of the product, selling variable life requires registration as a securities professional (such as a Series 6/7-type license) in addition to any life insurance licenses.

Fixed-life products like term life, whole life, and group life do not include an investment component tied to market performance. They provide a fixed death benefit and have no separate accounts, so they aren’t considered securities. Therefore, they generally don’t require a securities license to sell.

So, the product that necessitates a securities license is the one with an investment component—the variable life insurance.

More Multiple Choice Questions
Subscribe

Get the latest from Passetra

You can unsubscribe at any time. Read our privacy policy