Texas Life Agent Practice Exam 2026 – Comprehensive All-in-One Guide to Master Your Certification!

An insurance producer selling variable annuities must be registered with The Financial Industry Regulatory Authority (FINRA) because variable annuities are considered security products. FINRA is responsible for regulating securities firms and exchange markets, and it ensures that individuals selling these types of products meet specific qualifications and adhere to industry standards.

Variable annuities involve a combination of insurance and investment features, allowing for investment in various accounts, which can lead to fluctuations in the value of the annuity based on the performance of those accounts. Because of this investment aspect, the producer must comply with the same requirements as other securities sales representatives, which is why registration with FINRA is essential.

In contrast, while insurance products are overseen by state insurance departments, variable annuities fall under both regulatory jurisdictions. The other options listed do not specifically oversee the sale of securities or variable annuities; hence, they are not relevant in this context. Understanding this dual regulatory framework is crucial for professionals in the insurance and securities industries.