Code of Maine Rules
02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION
031 - BUREAU OF INSURANCE
Chapter 917 - SUITABILITY IN ANNUITY TRANSACTIONS
Section 031-917-7 - Producer Training
Universal Citation: 02 ME Code Rules ยง 031-917-7
Current through 2024-13, March 27, 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 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.
2.
A.
(1) A
producer who engages in the sale of annuity products shall complete a one-time
four (4) credit hour training course approved by the Bureau of Insurance and
provided by a vendor approved by the Bureau of Insurance.
(2) Producers who hold a life insurance line
of authority on the effective date of the 2021 amendments to this rule and who
desire to sell annuities shall complete a training course that satisfies the
requirements of this subsection no later than six (6) months after the
effective date of the amendments. Producers whose life insurance line of
authority is obtained on or after the effective date of the amendments may not
engage in the sale of annuities until the annuity training course required
under this subsection has been completed.
B. The length of the training required under
this subsection shall be sufficient to qualify for at least four (4) CE credit
hours. If a course covers additional subject matter beyond the topics required
by this subsection, only the pertinent subject matter shall count toward the
four (4)-hour minimum.
C. The
training required under this subsection 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;
and
(6) Appropriate standards of
conduct, appropriate sales practices, and replacement and disclosure
requirements. Courses completed on or after the effective date of the 2021
amendments to this rule must address the requirements of the amended
rule.
D. Vendors
providing 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 vendor providing an annuity training
course intended to comply with this subsection shall register as a CE vendor in
this State and comply with the rules and guidelines applicable to producer
continuing education courses as set forth in Bureau of Insurance Rule Chapter
542: "Educational Requirements for Insurance Professionals."
F. A producer who has satisfied the
requirements of paragraph A by completing an annuity training course based on a
prior version of this rule shall, no later than six (6) months after the
effective date of this rule, complete a course providing training on
appropriate standards of conduct, appropriate sales practices, and replacement
and disclosure requirements under this amended rule. The course may be either:
(1) A four (4) credit training course
approved by the Bureau of Insurance under paragraph A; or
(2) A one (1) credit training course approved
by the Bureau of Insurance and provided by a Bureau of Insurance-approved
education provider.
G.
Annuity training courses may be conducted and completed by classroom or
self-study methods in accordance with Bureau of Insurance Rule Chapter 542:
"Educational Requirements for Insurance Professionals."
H. Vendors that provide annuity training
shall comply with the reporting requirements and shall issue certificates of
completion in accordance with Bureau of Insurance Rule Chapter 542:
"Educational Requirements for Insurance Professionals."
I. 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.
J. A
producer may satisfy the training requirements of this subsection by taking two
or more approved courses if those courses, combined into a single course, would
meet the requirements of this subsection.
K. An insurer must 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 database
systems or vendors authorized by the Superintendent or from a reasonably
reliable commercial database vendor that has a reporting arrangement with
approved continuing education vendors.
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