Life insurance companies that issue annuities are regulated by state insurance departments to protect consumers and ensure company solvency. Each state has comprehensive laws and regulations governing, but not limited to, licensing requirements, market conduct regulation and financial condition examinations, as well as product approvals. In addition to state laws and regulations, variable annuities are subject to regulation by the Securities and Exchange Commission (SEC). Variable annuities can only be sold by a registered representative of a broker-dealer that is a member of the Financial Industry Regulatory Authority (FINRA, formerly National Association of Securities Dealers- NASD). This representative must also be licensed by the state where he or she is selling the annuity. Most states offer a free-look period following an annuity purchase. During this period (usually 10 days), the purchaser has the right to review the contract and return it if he or she feels the purchase was a mistake. The company then will cancel the contract and, depending on the state, will refund the initial contribution (purchase price) or the account value. Rules vary from state to state and not all states offer a free-look option.