Tennessee Insurance Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Tennessee Insurance Exam with engaging quizzes featuring detailed flashcards, multiple-choice questions, hints, and explanations, ensuring readiness for test day.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What must an agent possess to sell Variable Whole Life insurance products?

Only a state insurance license
A FINRA securities registration
A property and casualty license
Simply knowledge of insurance policies

The correct answer is: A FINRA securities registration

To sell Variable Whole Life insurance products, an agent must possess a FINRA securities registration. This requirement stems from the nature of Variable Whole Life insurance, which combines life insurance coverage with investment components, allowing policyholders to allocate their premiums to various investment options. Since these investment options are considered securities, agents must be registered with the Financial Industry Regulatory Authority (FINRA) to legally sell these products. This registration ensures that the agent has the necessary knowledge and understanding of securities regulations and investment risks, safeguarding both the consumer and the integrity of the financial markets. Simply having a state insurance license or knowledge of insurance policies alone is insufficient because they do not cover the complexities involved with the investment aspects of Variable Whole Life insurance. Similarly, a property and casualty license pertains to different types of insurance and would not provide the necessary qualifications to sell these specific products.