A state life and health license lets you sell insurance products such as term and whole life, fixed annuities, and health coverage. Variable annuities and variable life insurance are different: theyâre securities as well as insurance. To sell them, you generally need the insurance license and a FINRA registration, usually the Series 6 or Series 7 plus the SIE, through a broker-dealer.
Which products does each license cover?
FINRA puts the split plainly on its insurance agents page: some insurance products, like variable annuities, are securities under federal law, while others, like fixed or fixed indexed annuities, are not. FINRAâs annuities page adds that variable annuities and registered index-linked annuities (RILAs) are securities, regulated by the SEC and FINRA, while all annuities are regulated by state insurance commissioners.
| Product | State insurance license | FINRA registration |
|---|---|---|
| Term, whole, and universal life | Yes (life line) | No |
| Fixed and fixed indexed annuities | Yes (life line) | No |
| Health, disability, long-term care | Yes (accident and health line) | No |
| Variable life and variable universal life | Yes | Yes |
| Variable annuities and RILAs | Yes | Yes |
| Mutual funds | No | Yes |
The SECâs Investor.gov pages on variable annuities and variable life insurance say the same thing from the other direction: both are regulated by state insurance commissions as well as by the SEC.
What does the Series 6 add?
The Series 6 is FINRAâs Investment Company and Variable Contracts Products Representative exam. FINRA says it qualifies you to sell mutual funds, variable annuities, variable life insurance, unit investment trusts, and municipal fund securities such as 529 plans. It has 50 scored questions and a 1 hour and 30 minute time limit.
Two requirements separate it from an insurance exam:
- Sponsorship. You must be associated with and sponsored by a FINRA member firm (a broker-dealer) to take the Series 6. An insurance license, by contrast, is issued by your state without a sponsoring firm.
- The SIE. You must pass both the Series 6 and the Securities Industry Essentials (SIE) exam to hold the registration. The SIE is open to anyone 18 or older, and you donât need a firm to take it.
The Series 7 also covers variable products, along with a much wider range of securities. The Series 6 is the narrower of the two. Your firm decides which registration the role needs.
Does the state also add a variable products line?
Usually. The NAICâs Producer Licensing Model Act lists âvariable life and variable annuity productsâ as its own line of authority, separate from life. The NAICâs Uniform Licensing Standards call for states to adopt that line but say states may waive the exam for it, and that the resident state should verify an applicant has passed the appropriate securities exams and is registered with FINRA.
How your state applies this varies, so check with your department of insurance. Florida, for instance, names its life exam âFlorida Agentâs Life (including Annuities & Variable Contracts)â in its content outlines.
Where does the Series 63 fit?
The Series 63 is NASAAâs state securities law exam. NASAAâs exam FAQs say most states require it in addition to FINRAâs exam requirements. For the full order of steps, from the life and health license through the SIE, Series 6, Series 63, and Series 65, see the insurance agent license path. CertFuel has courses for the SIE, Series 6, and Series 63.
If you later want to give investment advice for a fee rather than sell products, thatâs a different registration. NASAA says passing the Series 65 is normally a prerequisite for licensing as an investment adviser representative. See the Series 65 course for that path.
Which should you get first?
If youâre starting in insurance sales, the state life and health license is the one you can get on your own: it covers fixed products and doesnât require a sponsor. Selling variable products also takes the Series 6 or 7, which a FINRA member firm has to sponsor, so that step depends on joining a firm that sells them.
You can take the SIE at any time, which some candidates do before they have a sponsor. Passing it alone doesnât qualify you to register; you still need the Series 6 or 7 through a firm.
How does CertFuel cover each exam?
CertFuelâs Life and Health course covers general life, annuity, and health knowledge for state insurance exams, including how variable life and variable annuities work. It doesnât cover state insurance law and doesnât satisfy any stateâs pre-licensing education requirement. The securities exams have their own courses: SIE, Series 6, Series 63, and Series 65.
To get started on the insurance side, read how to get a life and health insurance license and the life insurance and annuities topic guide. If youâre still deciding between insurance lines, see life vs. health insurance license.