Which organization is associated with regulatory oversight for selling variable life policies?

• A. NAIC
• B. NASD
• C. SEC
• D. FINRA

Answer: (B)

Variable life policies have an investment component, so they are treated as securities rather than pure insurance. The sale of these products is regulated by securities regulators, and the organization that directly oversees the brokers who sell them is FINRA. The SEC provides broad enforcement and registration of securities, while FINRA focuses on the conduct and supervision of broker-dealers and registered representatives. The NAIC handles insurance regulation at the state level, and NASD is the former name that has since merged into FINRA. So, the organization most closely associated with oversight of selling variable life policies today is FINRA.