South Carolina Life Insurance Practice Exam

Which of the following individuals would be unable to sell variable life insurance policies?

1. An agent who has been insured under a plan for at least 5 years

2. An agent who has received proper training and licensing

3. An agent who works for a non-licensed insurance company

4. An agent who has completed a financial services examination

The correct answer is: An agent who has been insured under a plan for at least 5 years

The correct answer indicates that an agent who has been insured under a plan for at least 5 years would not be able to sell variable life insurance policies. This is because simply being an insured individual does not provide the necessary qualifications or licenses required to sell insurance products. Licensing to sell variable life insurance is a regulatory requirement that ensures agents have the comprehensive knowledge and understanding needed to explain the complexities of such policies to potential clients. The other choices represent scenarios in which agents are properly equipped to sell variable life insurance: individuals in those situations have received proper training and licensing or have passed relevant examinations, which are essential components of being a licensed insurance professional. In the context of the insurance industry, it is critical to ensure that agents are not only knowledgeable about the policies they sell but also authorized to do so by state regulators. This helps protect consumers and ensures that agents operate within legal boundaries.