Series 7 Exam Question 177: Answer and Explanation

Question: 177

Variable annuities must be registered with the

I. Department of State

II. State Banking Commission

III. State Insurance Commission

IV. Securities and Exchange Commission

• A. I and II
• B. I and III
• C. I and IV
• D. III and IV

Correct Answer: D

Explanation:

D. Tricky, tricky. The Series 7 examiners want to make sure you know that a variable annuity is derived from two separate products: an insurance contract and securities held in a separate account. Consequently, a variable annuity must be registered with the State Insurance Commission (for the insurance contract) and the Securities and Exchange Commission (for the securities held in the separate account).