Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 20 - Insurance › Subchapter 25 - LIFE AND ANNUITIES › Part 1 - Suitability in Annuity Transactions › Section 230-RICR-20-25-1.7 - Producer Training

Current through June 14, 2024
A. 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 the producer 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 §
										1.7   of this Part.
B. Training
1. A producer who engages in the sale of
				  annuity products shall complete a one (1) time four (4) credit training course
				  approved by the Department of Insurance and provided by the Department of
				  Insurance-approved education provider.
2. Producers who hold a life insurance line
				  of authority on the effective date of this Part and who desire to sell
				  annuities shall complete the requirements of §
											1.7   of this Part within six
				  (6) months after the effective date of this Part. Individuals who obtain a life
				  insurance line of authority on or after the effective date of this Part may not
				  engage in the sale of annuities until the annuity training course required
				  under §
											1.7   of this Part has been completed.
3. The minimum length of the training
				  required under §
											1.7(B)(1)   of this Part shall be sufficient to qualify for
				  at least four (4) CE credits, but may be longer.
4. The training required under
				  §
											1.7(B)(1)   of this Part 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 §
											1.7(B)(1)   of this Part 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 producer who has
				  completed an annuity training course approved by the Department of Insurance
				  prior to April 1, 2021, shall, within six (6) months after April 1, 2021,
				  complete either:
a. A new four (4) credit
				  training course approved by the Department of Insurance after April 1, 2021; or
b. An additional one (1) time one
				  (1) credit training course approved by the Department of Insurance and provided
				  by the Department of Insurance-approved education provider on appropriate sales
				  practices, replacement and disclosure requirements under this amended
				  Regulation.
7. A
				  provider of an annuity training course intended to comply with §
											1.7   of
				  this Part shall register as a CE provider in this State and comply with the
				  Rules and guidelines applicable to insurance producer continuing education
				  courses as set forth in Subchapter 50 Part 2 of this Chapter.
8. Annuity training courses may be conducted
				  and completed by classroom or self-study methods in accordance with Subchapter
				  50 Part 2 of this Chapter.
9.
				  Providers of annuity training shall comply with the reporting requirements and
				  shall issue certificates of completion in accordance with Subchapter 50 Part 2
				  of this Chapter.
10. The
				  satisfaction of the components of the training requirements of any course or
				  courses with components substantially similar to the provisions of this
				  subsection shall be deemed to satisfy the training requirements of this
				  subsection in this State.
11. The
				  satisfaction of the training requirements of another State that are
				  substantially similar to the provisions of §
											1.7   of this Part shall be
				  deemed to satisfy the training requirements of §
											1.7   of this Part in this
				  State.
12. An insurer shall verify
				  that a producer has completed the annuity training course required under
				  §
											1.7(B)(1)   of this Part before allowing the producer to sell an annuity
				  product for that insurer. An insurer may satisfy its responsibility under
				  §
											1.7(B)(1)   of this Part 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.