Alabama Administrative Code
Title 482 - ALABAMA DEPARTMENT OF INSURANCE
Chapter 482-1-137 - SUITABILITY PROTECTION IN ANNUITY TRANSACTIONS
Section 482-1-137-.06.1 - Producer Training
Universal Citation: AL Admin Code R 482-1-137-.06.1
Current through Register Vol. 42, No. 5, February 29, 2024
(1) A producer shall not solicit the sale of an annuity product unless the producer has adequate knowledge of the product to recommend the annuity and the producer is in compliance with the insurer's standards for product training. A producer may rely on insurer-provided product-specific training standards and materials to comply with this paragraph.
(2)
(a)
1. A
producer who engages in the sale of annuity products shall complete a one-time
four (4) credit training course approved by the department of insurance and
provided by the department of insurance-approved education provider.
2. Producers who hold a life insurance line
of authority on the effective date of this regulation and who desire to sell
annuities shall complete the requirements of this subsection within six (6)
months after the effective date of this regulation. Individuals who obtain a
life insurance line of authority on or after the effective date of this
regulation may not engage in the sale of annuities until the annuity training
course required under this subsection has been completed.
(b) The minimum length of the training
required under this paragraph shall be sufficient to qualify for at least four
(4) CE credits, but may be longer.
(c) The training required under this
paragraph shall include information on the following topics:
1. The types of annuities and various
classifications of annuities.
2.
Identification of the parties to an annuity.
3. How product specific annuity contract
features affect consumers.
4. The
application of income taxation of qualified and non-qualified
annuities.
5. The primary uses of
annuities.
6. Appropriate standard
of conduct, sales practices, replacement and disclosure requirements.
(d) Providers of courses intended
to comply with this subsection shall cover all topics listed in the prescribed
outline and shall not present any marketing information or provide training on
sales techniques or provide specific information about a particular insurer's
products. Additional topics may be offered in conjunction with and in addition
to the required outline.
(e) A
provider of an annuity training course intended to comply with this paragraph
shall register as a CE provider in this State and comply with the rules and
guidelines applicable to producer continuing education courses as set forth in
Alabama Insurance Regulation 110, Chapter 482-1-110.
(f) A producer who has completed an annuity
training course approved by the department of insurance prior to January 1,
2022, shall, within six (6) months after January 1, 2022, complete either of
the following:
1. A new four (4) credit
training course approved by the Department of Insurance after January 1,
2022.
2. An additional one-time one
(1) credit training course approved by the Department of Insurance and provided
by the approved education provider on appropriate sales practices, replacement
and disclosure requirements under this amended chapter.
(g) Annuity training courses may be conducted
and completed by classroom or self-study methods in accordance with Alabama
Insurance Regulation 110, Chapter 482-1-110.
(h) Providers of annuity training shall
comply with the reporting requirements and shall issue certificates of
completion in accordance with Alabama Insurance Regulation 110, Chapter
482-1-110.
(i) The satisfaction of
the training requirements of another State that are substantially similar to
the provisions of this paragraph shall be deemed to satisfy the training
requirements of this paragraph in this State.
(j) The satisfaction of the components of the
training requirements of any course or courses with components substantially
similar to the provisions of this paragraph shall be deemed to satisfy the
training requirements of this paragraph in this state.
(k) An insurer shall verify that an insurance
producer has completed the annuity training course required under this
paragraph before allowing the producer to sell an annuity product for that
insurer. An insurer may satisfy its responsibility under this paragraph by
obtaining certificates of completion of the training course or obtaining
reports provided by commissioner-sponsored database systems or vendors or from
a reasonably reliable commercial database vendor that has a reporting
arrangement with approved insurance education providers.
Author: Commissioner of Insurance
Statutory Authority: Code of Ala. 1975, §§ 27-2-17; 27-12-1, et seq.
Disclaimer: These regulations may not be the most recent version. Alabama may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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