Florida Life, Health, and Variable Annuity Practice Exam 2025 - Free Practice Questions and Comprehensive Study Guide

To sell variable annuities, an agent must have dual licensing and regulation because variable annuities fall under both insurance products and securities. This requires agents to obtain a life insurance license from the state as well as a securities license, usually through passing the Series 6 or Series 7 exam administered by the Financial Industry Regulatory Authority (FINRA). The dual licensing ensures that the agent is knowledgeable about the insurance aspects of the annuity, such as mortality risk and premium behavior, as well as the investment aspects, including risk management and regulatory compliance inherent in the sale of securities.

Only having a state licensing related to insurance is insufficient since it does not encompass the securities dimension. Similarly, an insurance certification alone does not address the necessary knowledge and compliance requirements for the sale of products tied to the financial markets. Certification in retirement planning, while valuable, is not a mandatory requirement for the sale of variable annuities and does not provide the comprehensive regulatory framework needed to operate in both insurance and securities markets.