Registered Representative

What Does Registered Representative Mean?

A registered representative is an individual legally authorized to sell various types of securities. In the context of insurance, registered representatives often sell life insurance products. Many of these products include investment components, allowing a registered representative to assist policyholders with both investing their money and obtaining life insurance coverage. Indexed universal life insurance and annuities are common examples, since both have cash value or payouts that move with market performance and therefore require a securities license to sell.

Insuranceopedia Explains Registered Representative

To become a registered representative, an individual must first pass the Series 7 exam. This exam is comprehensive and focuses on securities knowledge, ensuring that those who sell securities are equipped to handle significant sums of clients’ money responsibly. Additionally, state insurance licenses are often required for registered representatives who wish to sell life insurance products. Anyone shopping for a policy with an investment component should confirm their agent holds both a Series 7 and the appropriate state life insurance license. Going in with a basic sense of how to choose the right life insurance policy makes those conversations easier, since these products can be more complex than a basic term policy.