Question

For a Variable Product, a FINRA Member must transmit all Applications and Premium Payments to the Issuer. What is the requirement for a FINRA Member regarding Applications and Premium Payments for a Variable Product?

1) Transmit Applications and Premium Payments to the Issuer
2) Keep Applications and Premium Payments with themselves
3) Return Applications and Premium Payments to the customer
4) Send Applications and Premium Payments to the Insurance company issuing the contract

Answer 1

A FINRA Member must transmit Applications and Premium Payments for a Variable Product directly to the Issuer of the product. This process ensures regulatory compliance and the proper management of investment-based insurance products.

Step-by-step explanation:

The requirement for a FINRA Member regarding Applications and Premium Payments for a Variable Product is to 1) Transmit Applications and Premium Payments to the Issuer.

This means that when dealing with Variable Products, which are investment-based insurance products, a FINRA Member is obligated by the rules set forth by regulatory authorities to send all completed applications along with the accompanying premium payments directly to the issuer of the Variable Product, such as an insurance company or investment firm.