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 120-2-94 - SUITABILITY IN ANNUITY TRANSACTIONS
Rule 120-2-94-.07 - Producer Training
Universal Citation: GA Rules and Regs r 120-2-94-.07
Current through Rules and Regulations filed through March 20, 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 subsection.
(a)
(i)
(A) 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.
(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.
(ii) 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.
(iii) 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 product specific 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.
(iv)
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.
(v) 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 Rule
120-2-3-.12.
(vi) A producer who has completed an annuity
training course approved by the department of insurance prior to [insert
effective date of amended regulation] shall, within six (6) months after
[insert effective date of amended regulation], complete either:
(A) A new four (4) credit training course
approved by the department of insurance after [insert effective date of amended
regulation]; or
(B) An additional
one-time one (1) credit training course approved by the department of insurance
and provided by the department of insurance-approved education provider on
appropriate sales practices, replacement and disclosure requirements under this
amended regulation.
(vii)
Annuity training courses may be conducted and completed by classroom or
self-study methods in accordance with Rule
120-2-3-.12.
(viii) Providers of annuity training shall
comply with the reporting requirements and shall issue certificates of
completion in accordance with Rule
120-2-3-.12.
(ix) 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.
(x) 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.
(xi) 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.
O.C.G.A. § 33-2-9.
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