What entities regulate variable life policies?

Variable life policies are unique in that they combine aspects of life insurance with investment features. This combination means that they are subject to oversight from multiple regulatory bodies. The Securities and Exchange Commission (SEC) is responsible for regulating the investment components of these policies. This is because variable life policies often include investment options akin to mutual funds, making them subject to federal securities laws that the SEC enforces to protect investors.

Simultaneously, the insurance components of variable life policies fall under the jurisdiction of state insurance departments. These departments regulate the insurance aspects, ensuring that the policies meet state insurance laws and provide consumer protection.

The dual regulation by both the SEC for the investment features and the state insurance departments for the insurance components ensures a comprehensive regulatory framework, which is essential for protecting consumers and maintaining the integrity of the financial markets.