What is required for an individual to sell variable annuities in Arizona?

To sell variable annuities in Arizona, an individual must hold both an insurance license and a securities license. Variable annuities are considered securities due to their investment components, which can include stocks, bonds, or mutual funds. This classification under securities laws necessitates that the individual is registered and licensed to deal with securities, in addition to being licensed to sell insurance products. This requirement ensures that agents have a comprehensive understanding of both insurance principles and securities regulations, enabling them to adequately inform and protect consumers when selling these complex financial products.

The need for a securities license emphasizes the regulatory framework surrounding variable products, as they are subject to different laws and oversight compared to standard insurance products. Having just an insurance license would not suffice because it does not cover the aspects related to investment risks and the securities market, which are essential when dealing with variable annuities.