2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle A - Life Insurance in General › Chapter 1115 - Suitability of Certain Annuity Transactions › Subchapter B. Duties of Insurers and Agents › Section 1115.056. Agent Training Requirements

Sec. 1115.056.  AGENT TRAINING REQUIREMENTS.  (a)  An agent may not solicit the sale of an annuity product unless the agent has adequate knowledge of the product to recommend the annuity and the agent is in compliance with the insurer's standards for product training.  An agent may rely on insurer-provided, product-specific training standards and materials to comply with this subsection.
(b)  An agent who engages in the sale of annuity products must complete a one-time four-credit training course approved by the department and provided by a continuing education provider.
(c)  The training required by Subsection (b) must be of a length sufficient to qualify for at least four continuing education credits, as determined by the commissioner in accordance with Chapter 4004 and any rules adopted under that chapter, but may be longer.  The training required by Subsection (b) may be used to satisfy the continuing education requirements under Subchapters B and E, Chapter 4004, and is not in addition to the continuing education requirements in Section 4004.202.
(d)  The training required by Subsection (b) must 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 features affect consumers;
(4)  the application of income taxation of qualified and nonqualified annuities;
(5)  the primary uses of annuities; and
(6)  appropriate standard of conduct sales practices, replacement, and disclosure requirements.
(e)  A provider of a course intended to comply with Subsection (b) must cover all topics listed in Subsection (d) and may not present any marketing information, 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.
(f)  A provider of an annuity training course intended to comply with Subsection (b) must register as a continuing education provider in this state and comply with the rules and guidelines applicable to agent continuing education courses provided by Chapter 4004.
(g)  An annuity training course may be conducted and completed by classroom or self-study methods in accordance with Chapter 4004.
(h)  A provider of annuity training under Subsection (b) must comply with the reporting requirements and issue certificates of completion in accordance with Chapter 4004.
(i)  The satisfaction of the training requirements of another state that are substantially similar to the provisions of this section is considered to satisfy the training requirements of this section.
(i-1)  A course that is substantially similar to a course required by this section satisfies the requirement.
(j)  An insurer must verify that an agent has completed the annuity training course required by this section before allowing the agent to sell an annuity product for that insurer.  An insurer may satisfy the insurer's responsibility under this section by:
(1)  obtaining a certificate of completion of the training course or obtaining an appropriate report provided by the department;
(2)  using a department-sponsored database or vendor; or
(3)  using a reasonably reliable commercial database vendor that has a reporting arrangement with approved insurance education providers.
Added by Acts 2009, 81st Leg., R.S., Ch. 362 (H.B. 1294), Sec. 1.001, eff. September 1, 2009.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 1156 (H.B. 2277), Sec. 13, eff. September 1, 2011.
Acts 2021, 87th Leg., R.S., Ch. 262 (H.B. 1777), Sec. 15, eff. September 1, 2021.