Final answer:
Variable life insurance is regulated by FINRA and the SEC, requiring agents to have both life insurance and securities licenses to sell such products.
Step-by-step explanation:
Variable life insurance products are securities contracts and are regulated by the Financial Industry Regulatory Authority (FINRA) and Securities and Exchange Commission (SEC). Agents selling variable products must have a life insurance and a securities license. These regulations are in place to ensure that all information relevant to publicly traded securities, which variable life insurance policies fall under, are properly disclosed to potential investors, as mandated by the Federal Securities Act of May 27.
This Act set legal standards for disclosure and led to the establishment of the SEC which plays a pivotal role in regulating the investment industry. Thus, professionals involved in selling variable life insurance must be well-versed in these regulations and hold the appropriate licensing to ensure compliance and protect consumers.