A Hawaii producer applies for authority to sell Variable Life and Variable Annuity products.

A is correct. Hawaiʻi treats Variable Life and Variable Annuity Products as a distinct line of insurance authority because these contracts combine insurance protection with securities-related investment features. The Hawaiʻi Insurance Division's official individual licensing application specifies that an applicant seeking the Variable Life and Variable Annuity line must attach a Central Registration Depository (CRD) report showing securities registration in Hawaiʻi with FINRA .

This additional requirement exists because variable life policies and variable annuities allocate values to separate accounts whose performance may depend on securities such as equity, bond, or money-market investments. Consequently, persons selling these contracts are subject to both relevant insurance licensing requirements and applicable securities regulation.

A producer does not need five years of Life experience merely to obtain variable authority, making B incorrect. A Property insurance line has no relationship to qualification for variable life or variable annuity products. D is plainly incorrect; producers are private licensees regulated by the Insurance Division rather than employees of the Division.

HRS §431:10D-118 also gives the Insurance Commissioner authority to regulate issuance and sale of variable contracts and licensing of persons who sell them.

Reference topics: Variable Life and Variable Annuity Licensing; FINRA/CRD Registration; HRS §431:10D-118; Separate Accounts.