Variable life insurance policies are a type of life insurance policy that guarantees a death benefit while also offering the potential for investment growth. These policies are subject to certain regulatory requirements designed to protect policyholders from any potential fraud or abuse. While state and federal governments are the primary regulatory entities overseeing variable life policies, there are a number of other entities that also help to regulate and police the policies.

At the federal level, the Internal Revenue Service (IRS) is the primary regulator for variable life policies. The IRS sets down regulations for variable life policies, such as the types of investments that can be held in the policy, the types of fees and taxes that must be paid, and the guarantees that must be made to policyholders. The IRS also has the authority to enforce its regulations by assessing fines or revoking policies that are not in compliance.

In addition to the IRS, the U.S. Securities and Exchange Commission (SEC) also plays a role in regulating variable life policies. The SEC oversees the financial services industry in general, and as such has authority to monitor the activities of variable life insurers. The SEC also sets minimum standards for the sale of variable life policies, such as requirements for disclosure of information and restrictions on certain types of investments.

The National Association of Insurance Commissioners (NAIC) is another important player in the regulation of variable life policies. The NAIC is an organization of state insurance regulators that sets the standards for the insurance industry as a whole. This includes standards for the sale of variable life policies, such as minimum benefit guarantees and restrictions on investments. The NAIC also has the authority to enforce its standards, such as by issuing fines, revoking policies, or suspending agents.

Finally, many states have their own insurance regulatory bodies that oversee the sale of variable life policies. These state regulatory bodies set their own regulations for the sale of such policies, such as minimum standards for disclosure and sales practices. States also have the power to enforce their regulations, such as by suspending or revoking policies that do not comply.

It is important to note that while all of these entities have a role in regulating variable life policies, the Federal Trade Commission (FTC) does not. The FTC is a federal agency that regulates consumer protection, but does not have any authority over the sale of variable life policies.