Series 63 practice questionmediumSecurity Definition — Insurance Products
Which insurance product is generally excluded from the Uniform Securities Act definition of a security?
- AA fixed annuity issued by an authorized insurance company✓ Correct answer
- BA variable annuity whose value depends on a separate account
- CA variable life insurance contract
- DAn investment contract marketed through an insurer
Explanation
Why A — A fixed annuity issued by an authorized insurance company
A fixed insurance or annuity contract issued by an authorized insurer is generally excluded from the USA definition of security. Variable contracts and investment contracts involve investment risk and are securities.
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