A variable life policy salesperson must register with which organization before selling?

• A. National Association of Insurance Commissioners (NAIC)
• B. National Association of Securities Dealers (NASD)
• C. Securities and Exchange Commission (SEC)
• D. Financial Industry Regulatory Authority (FINRA)

Answer: (B)

Variable life policies mix life insurance with investment components, so selling them is treated as a securities activity. Because of that, a salesperson must be registered as a securities representative with the body that oversees broker-dealers and their registered reps. Historically, that organization was the National Association of Securities Dealers, which later became FINRA. That heritage is why NASD is presented as the correct choice in many exam contexts. The other options aren’t the registration body for securities sales reps: NAIC handles insurance regulators, SEC is the federal securities regulator but not the registration body for reps, and FINRA is the current name for the regulator that took over NASD’s functions.