Securities and Exchange Commission (SEC)

Published: | Updated: July 15, 2017

Definition - What does Securities and Exchange Commission (SEC) mean?

The Securities and Exchange Commission (SEC) is the government agency that regulates the securities market. This agency protects investors by ensuring that securities laws are being followed throughout the nation.

Many insurance agencies offer securities and investing options and are, therefore, subject to securities laws and regulated by the SEC.

Insuranceopedia explains Securities and Exchange Commission (SEC)

The SEC commonly prosecutes the perpetrators of offenses such as insider trading, fraud, and the dissemination of misleading material. In other words, the SEC attempts to keep the securities market fair and legitimate and punishes parties who seek to corrupt it.

Although securities are not the primary product offered by insurance companies, many insurance companies—life insurance companies in particular—still deal in them. These companies must comply with U.S. securities laws or face consequences from the SEC.

How Well Do You Know Your Life Insurance?

The more you know about life insurance, the better prepared you are to find the best coverage for you.

Whether you're just starting to look into life insurance coverage or you've carried a policy for years, there's always something to learn.

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