Compilation of Rules and Regulations of the State of Georgia
Department 120 - OFFICE OF COMMISSIONER OF INSURANCE, SAFETY FIRE COMMISSIONER AND INDUSTRIAL LOAN COMMISSIONER
Chapter 120-2 - RULES OF COMMISSIONER OF INSURANCE
Subject 120-2-22 - GEORGIA VARIABLE ANNUITY CONTRACT REGULATION
Rule 120-2-22-.07 - Examination of Agents and Other Persons

(1) No agent shall be eligible to sell or offer for sale a variable annuity contract unless prior to making any solicitation or sale of such a contract, be also be licensed as a variable annuity agent.

(2) Any agent applying for a license as a variable annuity agent shall do so by filing with this Department form No. GID-103V A designated "Uniform Form AP for Securities Salesmen, Variable Contract Salesmen and Other Associated Persons."

(3) The licensing as a variable annuity agent of any agent complying with paragraph (2) shall not become effective until such agent shall have satisfactorily passed a written examination upon securities and variable annuity contracts. Such examination shall be divided into two parts. Part I shall be on securities generally. Part II shall deal with variable annuity contracts, and shall be composed of at least fifteen questions, but not more than fifty questions, concerning the history, purpose, regulation, and sale of contracts on a variable basis.

(4) The examination will be given in such places and at such times as the Commissioner shall from time to time designate. Upon application for license as a variable annuity agent, the applicant shall be notified of the date of the next examination.

(5) The examination recommended for the testing of variable annuity agents by the National Association of Insurance Commissioners is hereby adopted for use in this State in its present form, or as it may be amended, and it shall be used in all tests given pursuant to this regulation.

(6) Any applicant for license as a variable annuity agent shall not be required to take Part I of the NAIC examination if, at the time of application, evidence is presented that the applicant (a) has previously passed a satisfactory alternative examination as defined in paragraph (4) of Section 120-2-22-.01 of these Regulations, or (b) is currently registered with the Federal Securities and Exchange Commission as a broker-dealer, or is currently associated with a broker-dealer and has met qualification requirements with respect to such association.

(7) Every applicant applying for license as a variable annuity agent shall satisfactorily complete Part II of the examination required by paragraph (3) with a grade of at least seventy percent (70%). The Commissioner may, in his discretion, accept, in lieu of such examination, evidence of successful completion of either a variable contract examination given under the supervision of an insurance department of any state or territory of the United States which has adopted Part II of the examination recommended for the testing of variable annuity agents by the National Association of Insurance Commissioners or has been examined and licensed by any such department pursuant to an examination prior to its adoption of the National Association of Insurance Commissioners Model Regulation provided it is substantially equivalent to that given in Georgia.

(8) Any applicant who fails to pass Part I or Part II of the examination required by paragraph (3) may not take Part I or Part II of the examination again until 30 days after initially taking it. After a second such failure, such applicant may not take the examination again until the expiration of six months from the date of the last examination in which he failed. If such applicant shall fail to pass Part I or Part II on the third taking of such, he may not take it again for 30 days after such third failure. If such person shall thereafter fail to pass the fourth such examination, he shall not be eligible to take any further examinations until after the expiration of one year from the date of his last unsuccessful examination.

(9) Every application for a license as a variable annuity agent shall be accompanied by a license fee of $15.00 and an examination fee of $10.00. A fee of $5.00 will be charged for each re-examination administered to an applicant. No fees are refundable.

(10) Report of the results of any examination given pursuant to this Regulation shall be made by the Department on "Commissioner's Report of Examination No. GID-106VA."

(11) Except as modified by these regulations, the regulations of this Department governing the licensing of life insurance agents including examinations therefor shall apply hereto.

(12) Part I of the written examination provided for in paragraph (3) may also be administered to other persons who are not required to be licensed to sell life insurance in this State upon their submission of form No. GID-103VA "Uniform Form AP for Securities Salesmen, Variable Contract Salesmen and Other Associated Persons" and payment of the examination fee.

(13) Results of the examination administered pursuant to paragraph (3) will be reported by this Department to the applicant's company. In addition, examination results will be reported by this Department to any other State Insurance Department requesting confirmation of the examination grade, either upon request of such Department or upon request of the applicant or his company.

(14) Records of the examination grade of each applicant upon an examination administered by this Department, or upon an examination deemed to be a satisfactory alternative examination and administered by another agency or authority and reported to this Department, will be retained in the file pertaining to said applicant.

(15) Any person licensed in this state as a variable annuity agent shall immediately report to the Commissioner (a) any suspension or revocation of his variable annuity agent's license or life insurance agent's license in any other State or Territory of the United States, (b) the imposition of any disciplinary sanction (including suspension or expulsion from membership, suspension or revocation of or denial of registration) imposed upon him by any national securities exchange, or national securities association, or any Federal, or State or Territorial agency with jurisdiction over securities or contracts on a variable basis; (c) any judgment or injunction entered against him on the basis of conduct deemed to have involved fraud, deceit, misrepresentation, or violation of any insurance or securities law or regulation.

(16) The Commissioner may reject any application or suspend or revoke or refuse to renew any variable annuity agent's license upon any ground that would bar such applicant or such agent from being licensed to sell life insurance contracts in this State. The rules governing any proceeding relating to the suspension or revocation of a life insurance agent's license shall also govern any proceeding for suspension or revocation of a variable annuity agent's license.

(17) Renewal of a variable annuity agent's license shall follow the same procedure established for renewal of an agent's license to sell life insurance contracts in this State. Applications for renewal shall be by Form No. GID-101VA.