Final answer:
Insurance producers selling variable products must pass series 6 or 7 exams to be registered with FINRA. The U.S. insurance industry is state-regulated, with coordination by the National Association of Insurance Commissioners. Health insurance exchanges, state or federal, encourage market competition.
Step-by-step explanation:
Insurance producers selling variable products must be registered with FINRA, which stands for the Financial Industry Regulatory Authority. To become registered, producers must pass the series 6 or 7 examinations. The regulation of insurance markets and financial markets is critical due to issues of imperfect information, where insurers seek to identify and price policies according to the risk profile of individuals seeking insurance, and the insured aim to demonstrate their low risk to obtain better rates.
In the United States, the insurance industry is regulated mainly at the state level, with coordination by the National Association of Insurance Commissioners to ensure the accessibility and affordability of insurance while managing the conflicts that may arise between these goals, especially due to political influence. For health insurance, states require exchanges, or they may use the federal exchange, to foster competition among insurance providers and improve market conditions.