If a financial product name includes the word 'variable', what type of representative license must the producer also hold?

When a financial product includes the word 'variable', it typically refers to variable products like variable life insurance and variable annuities. These products have investment components that can fluctuate in value based on the performance of underlying investments. Because of this investment element, producers must be properly licensed to sell these types of products, which requires obtaining a Financial Industry Regulatory Authority (FINRA) license.

The FINRA license ensures that the producer has met specific qualifications and understands the regulations governing the sale of securities and investments, which are critical to managing the various risks associated with variable products. This licensing is separate from traditional insurance licenses, such as those for life, health, or accident insurance, as those do not encompass the complexities and regulatory requirements of investment products. Thus, the inclusion of 'variable' in the product name signifies the need for additional qualifications pertaining to securities and investments, thereby necessitating the FINRA license.