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Securities Licenses Becoming Key for Life Insurance Agents.

Holding a securities license is fast becoming a requirement for life insurance agents, according to a survey by Securities Training Corp., New York, in cooperation with Limra International, Windsor, Conn.

The survey revealed that more than two-thirds of U.S. life insurance companies said the vast majority of their agents hold Series 6 licenses, and 36% of the companies require them to. In 1997, only about one-third of the nearly 200,000 U.S. life agents held a National Association of Securities Dealers license of any kind, according to Limra.

The survey also showed that about 25% of companies require agents to obtain a Series 7 license. A Series 6 license allows agents to sell variable products and mutual funds, while a Series 7 license permits sale of a full range of securities and investment products.

Securities Training Corp. President Paul Weisman said the trend toward NASD licensing in the life insurance industry has been under way since the early 1990s, when companies began offering variable products.

"It's practically a must that agents be licensed, now that almost 70% of life insurance products, such as variable annuities and variable life, are equity-based," Weisman said. "Also driving the licensing trend is the shift towards fee-based investment advisory work and away from commission or transaction-based compensation."
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Comment:Securities Licenses Becoming Key for Life Insurance Agents.
Publication:Best's Review
Article Type:Brief Article
Geographic Code:1USA
Date:Jul 1, 2001
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