Connecticut Administrative Code
Title 38a - Insurance Department
432a - Suitability in Annuity Transactions
Section 38a-432a-8 - Producer training
Universal Citation: CT Reg of State Agencies 38a-432a-8
Current through March 14, 2024
(a) 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 subsection.
(b)
(1)
(A) A
producer who engages in the sale of annuity products shall complete a one-time
four (4) CE credit training course approved by the commissioner and provided by
the continuing education provider.
(B) 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.
(2) The minimum length of the training
required under this subsection shall be sufficient to qualify for at least four
(4) CE credits, but may be longer.
(3) The training required under this
subsection shall include information on the following topics:
(A) The types of annuities and various
classifications of annuities;
(B)
Identification of the parties to an annuity;
(C) How fixed, variable and indexed annuity
contract provisions affect consumers;
(D) The application of income taxation of
qualified and non-qualified annuities;
(E) The primary uses of annuities;
and
(F) Appropriate standard of
conduct, sales practices, replacement and disclosure requirements.
(4) Providers of courses intended
to comply with this subsection shall cover all topics listed in subdivision (3)
of this subsection 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 topics.
(5) A provider of an annuity training course
intended to comply with this subsection 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 sections
38a-782a-1 to section
38a-782a-17,
inclusive, of the Regulations of Connecticut State Agencies.
(6) A producer who completes an annuity
training course approved by the commissioner prior to the effective date of
this regulation shall, within six (6) months after such date, complete either:
(A) A new four (4) CE credit training course
approved by the commissioner after the effective date of this regulation;
or
(B) An additional one-time one
(1) CE credit training course approved by the commissioner and provided by the
continuing education provider on appropriate sales practices, replacement and
disclosure requirements under sections
38a-432a-1 to 38a-432a-8,
inclusive, of the Regulations of Connecticut State Agencies.
(7) Annuity training courses may
be conducted and completed by classroom method or by self-study method in
accordance with section
38a-782a-7 of
the Regulations of Connecticut State Agencies.
(8) Providers of annuity training shall
comply with the reporting requirements and shall issue certificates of
completion in accordance with section
38a-782a-4
of the Regulations of Connecticut State Agencies.
(9) The satisfaction of the training
requirements of another state that are substantially similar to the provisions
of this subsection shall be deemed to satisfy the training requirements of this
subsection in this state.
(10) The
satisfaction of the components of the training requirements of any course or
courses with components substantially similar to the provisions of this
subsection shall be deemed to satisfy the training requirements of this
subsection in this state.
(11) An
insurer shall verify that a producer has completed the annuity training course
required under this subsection before allowing the producer to sell an annuity
product for that insurer. An insurer may satisfy its responsibility under this
subsection 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.
Disclaimer: These regulations may not be the most recent version. Connecticut 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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