Life Insurance Basics
Why is a variable life policy regulated by more than the state insurance department?
Answer and explanation
Answer: B. A variable contract places value in a separate account whose performance the owner bears, which makes it a security subject to federal securities regulation alongside New York insurance law. Distribution channel, premium setting, and insurer domicile do not create that dual oversight.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, regulation of variable products
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