Want To Sell Variable Contracts? Here Are Some Licensing Costs
Insurers currently are subject to fees for regulation by the National Association of Securities Dealers as well as state insurance departments, according to interviews with National Underwriter.
For example, an insurer with a broker-dealer affiliate would pay a $5,000 membership fee, according to the NASD Web site, www.nasdr.com/3445.htm.
The membership fee for all other members of the company (not connected with the broker-dealer) is $3,000.
Fees for producers include: An annual processing fee costing $30; a renewal fee, $10; and a registration fee, $85, according to the NASD.
An initial fingerprint processing fee costs $32 per card and a Series 6 licensing fee is $60.
A firm such as an insurer or wirehouse is responsible for paying the fee and can decide if and how to collect from an individual producer, says Tom Holloman, an NASD spokesman. Many firms have accounts that fees are drawn from as a producer moves through the filing process, he adds.
In addition to the NASD, a producer selling variable contracts would also have to comply with state insurance department licensing fees and continuing education requirements.
For example, in New York state, an agent selling variable contracts would have to pay a full fee of $40 for a two-year license.
Other requirements, according to the insurance department Web site, www.ins.state.ny.us/iablicn.htm, include 15 CE credits in life/accident-related CE courses every two years. A 4-credit variable insurance course costs $75.
Reproduced from National Underwriter Life & Health/Financial Services Edition, September 3, 2001. Copyright 2001 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.