Illinois Administrative Code › Title 50 - INSURANCE › Part 3120 - SUITABILITY IN ANNUITY TRANSACTIONS › Section 3120.60 - Insurance Producer Training

Current through Register Vol. 48, No. 28, July 12, 2024
a)
			 An insurance producer shall not solicit the sale of an annuity product unless
			 the insurance producer has adequate knowledge of the product to recommend the
			 annuity and the insurance producer is in compliance with the insurer's
			 standards for product training. An insurance producer may rely on
			 insurer-provided product-specific training standards and materials to comply
			 with this subsection.
b) Training
			 Requirements
1) An insurance producer who
			 engages in the sale of annuity products shall complete a one-time four-hour
			 credit training course approved by the Department and provided by a
			 Department-approved education provider.
2) Insurance producers who hold a life
			 insurance line of authority after July 31, 2023 and who desire to sell
			 annuities shall complete the requirements of this subsection (b) by February 1,
			 2024. Individuals who obtain a life insurance line of authority on or after
			 February 1, 2024 may not engage in the sale of annuities until the annuity
			 training course required under this subsection has been completed.
3) The minimum length of the training
			 required under this Section shall be sufficient to qualify for at least four CE
			 credits, but may be longer. When an annuity product offers any long-term care
			 benefits as defined in 50 Ill. Adm. Code
			 2012.30, the insurance producer
			 shall complete the training requirements in 50 Ill. Adm. Code
			 2012.121 prior to selling the
			 annuity product.
4) The training
			 required under this Section 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
			 features 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.
5)
			 Providers of courses intended to comply with this Section 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.
6) A provider of an annuity training course
			 intended to comply with this subsection (b) shall register as a CE provider in
			 this State and comply with the rules applicable to insurance producer
			 continuing education in 50 Ill. Adm. Code
			 3119.30.
7) An insurance producer who completed an
			 annuity training course approved by the Department before August 1, 2023 shall,
			 by February 1, 2024, complete either:
A) A new
			 four-credit training course approved by the Department that covers the required
			 topics of subsection (b)(4); or
B)
			 An additional one-time one-credit training course approved by the Department
			 and provided by a Department-approved education provider on appropriate sales
			 practices, replacement, and disclosure requirements under this Part.
8) Annuity training courses may be
			 conducted and completed by classroom, webinar, or self-study methods in
			 accordance with 50 Ill. Adm. Code 3119.30.
9) Providers of annuity training shall comply
			 with the reporting requirements and shall issue certificates of completion in
			 accordance with 50 Ill. Adm. Code 3119.30.
10) The satisfaction of the training
			 requirements of another state that are substantially similar to the provisions
			 of this subsection (b) shall be deemed to satisfy the training requirements of
			 this subsection (b) in Illinois.
11) The satisfaction of the components of the
			 training requirements of any course or courses with components substantially
			 similar to the provisions of this subsection (b) shall be deemed to satisfy the
			 training requirements of this subsection (b) in Illinois.
12) An insurer shall verify that an insurance
			 producer has completed the annuity training course required under this
			 subsection (b) before allowing the insurance producer to sell an annuity
			 product for that insurer. An insurer may satisfy its responsibility under this
			 subsection (b)(12) by obtaining certificates of completion of the training
			 course or obtaining reports provided by database systems or vendors sponsored
			 by the insurance commissioners of other states or from a reasonably reliable
			 commercial database vendor that has a reporting arrangement with approved
			 insurance education providers.