Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.12 - Suitability in Annuity Transactions › Section 31.09.12.08 - Producer Training

Current through Register Vol. 51, No. 14, July 12, 2024
A. A producer may 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.
B. A producer may rely on insurer-provided product-specific training standards and materials to comply with §A of this regulation.
C. Training Requirements.
(1) A producer who engages in the sale of annuity products shall complete a one-time four-credit training course approved by the Maryland Insurance Administration and provided by a Maryland Insurance Administration approved education provider.
(2) A producer who holds a life insurance line of authority on the effective date of this regulation and who desires to sell annuities shall complete the requirements of §C(1) of this regulation within 6 months after the effective date of this regulation.
(3) An individual who obtains 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 §C(1) of this regulation has been completed.
(4) The minimum length of the training required under §C(1) of this regulation shall be sufficient to qualify for at least four continuing education credits but may be longer.
(5) The training required under §C(1) of this regulation 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.
(6) Providers of courses intended to comply with §C(1) of this regulation:
(a) Shall cover all topics listed in the prescribed outline;
(b) May not present any marketing information or provide training on sales techniques or provide specific information about a particular insurer's products; and
(c) May offer additional topics in conjunction with and in addition to the required outline.
(7) A provider of an annuity training course intended to comply with §C(1) of this regulation shall comply with the rules and guidelines applicable to producer continuing education courses as set forth in COMAR 31.03.02.
(8) Within 6 months after the effective date of this regulation, a producer who has completed an annuity training course approved by the Maryland Insurance Administration prior to the effective date of this regulation shall complete either:
(a) A new four-credit training course approved by the Maryland Insurance Administration after the effective date of this regulation; or
(b) An additional one-time one-credit training course approved by the Maryland Insurance Administration and provided by the Maryland Insurance Administration approved education provider on appropriate sales practices, replacement, and disclosure requirements under this chapter.
(9) Annuity training courses may be conducted and completed by classroom or self-study methods in accordance with COMAR 31.03.02.
(10) A provider of annuity training shall comply with the reporting requirements and shall issue certificates of completion in accordance with COMAR 31.03.02.
(11) The satisfaction of the training requirements of another state that are substantially similar to the requirements of this section shall be deemed to satisfy the training requirements of this regulation.
(12) The satisfaction of the components of the training requirements of any course or courses with components substantially similar to the provisions of §C of this regulation shall be deemed to satisfy the training requirements of this regulation.
(13) 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.
(14) An insurer may satisfy its responsibility under this regulation 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.