(1) Before applying for a variable contracts line of authority:
(a) a producer shall be licensed under Section 61-1-3 as a:
(i) broker-dealer; or
(ii) broker-dealer agent; and
(b) a consultant shall be licensed under Section 61-1-3 as an:
(i) investment adviser; or
(ii) investment adviser representative.
(2) A producer's or consultant's variable contracts line of authority is canceled on the day the producer's or consultant's securities related license under Section 61-1-3 is no longer active.