Tennessee Insurance Practice Exam 2025 – All-in-One Resource for Exam Success!

The type of insurance that can be sold without requiring a FINRA registration is Modified Whole Life insurance. This type of insurance is classified as permanent life insurance and does not involve investment components linked to market securities. Therefore, it does not fall under the jurisdiction of the Financial Industry Regulatory Authority (FINRA), which primarily oversees the brokerage and trading of securities.

In the case of Variable Whole Life insurance, agents must have FINRA registration because it combines life insurance coverage with an investment component that can fluctuate based on market performance. Universal Life insurance also involves investment features, which necessitate compliance with FINRA regulations. Term Life insurance generally does not have investment components either, but in the context of the other options, Modified Whole Life is specifically crafted to provide stability and predictability in terms of premiums and benefits, further emphasizing its classification under the insurance regulation rather than securities regulation.