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

Current through Rules and Regulations filed through June 27, 2024
(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.
O.C.G.A. Secs.
				  33-2-9,
				  33-11-35.