Final answer:
To sell variable annuities in Texas, an individual needs to obtain both a general lines insurance license and a securities license (Series 6 or 7). This mandates passing the relevant insurance and securities licensing exams and fulfilling the application procedures as per Texas and FINRA regulations.
Step-by-step explanation:
To sell variable annuities in Texas, one must hold two separate licenses: a general lines insurance license and a securities license Series 6 or 7. Acquiring these licenses involves passing the required examinations and complying with the application process set by the Texas Department of Insurance and the Financial Industry Regulatory Authority (FINRA).
Firstly, the general lines insurance license authorizes the licensee to sell life and health insurance products in Texas, which includes variable annuities. This license requires passing an insurance exam specific to Texas regulations and products.
Secondly, because variable annuities are considered securities, individuals must also pass the Series 6 or Series 7 securities licensing exam administered by FINRA. The Series 6 license allows for the sale of mutual funds and variable contracts, whereas the Series 7 license covers a broader range of securities. Compliance with continuing education and ethical standards is also essential for maintaining these licenses and providing services with integrity and professionalism.