Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 45 - RULES GOVERNING SUTAIBILITY IN ANNUITY TRANSACTIONS › Section 14VAC5-45-45 - Agent training

Current through Register Vol. 40, No. 24, July 15, 2024
A. An
				agent shall 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. Training
				requirements are as follows:
1. Agents who
				hold a life insurance and annuities line of authority and engage in the sale of
				annuity products shall complete a one-time four-credit annuity suitability
				training course that includes the best interest standard approved as continuing
				education by the board in accordance with §
										38.2-1867
				of the Code of Virginia and provided by the board approved education
				provider.
2. Agents who hold a life
				insurance and annuities line of authority prior to September 1, 2021 , and
				engage in the sale of annuity products shall complete the requirements of this
				subsection by March 1, 2022 . Individuals who obtain a life insurance and
				annuities line of authority on or after September 1, 2021 , may not engage in
				the sale of annuity products until the one-time four-credit annuity suitability
				training course that includes the best interest standard required under this
				subsection has been completed.
3.
				The minimum length of the training required under this subsection shall be
				sufficient to qualify for at least four CE credits, but may be
				longer.
4. The training required
				under this subsection 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 nonqualified
				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 subsection shall cover all
				topics listed in subdivision 4 of this subsection 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 those in subdivision 4 of
				this subsection.
6. A provider of
				an annuity training course intended to comply with this subsection shall
				register as a CE provider in this Commonwealth and comply with the rules and
				guidelines applicable to agent continuing education courses as set forth in
				§
										38.2-1867
				of the Code of Virginia.
7. An
				agent who has completed the one-time four-credit annuity suitability training
				course approved by the board prior to September 1, 2021 , shall, by March 1,
				2022 , complete either:
a. A new one-time
				four-credit training course that includes the best interest standard approved
				by the board; or
b. An additional
				one-time one-credit best interest standard training course approved by the
				board and provided by the board-approved education provider on appropriate
				sales practices, replacement, and disclosure requirements under this
				chapter.
8. Annuity
				training courses may be conducted and completed by classroom or self-study
				methods in accordance with the rules and guidelines set forth in §
										38.2-1867
				of the Code of Virginia.
9.
				Providers of annuity training shall comply with the reporting requirements in
				§
										38.2-1867
				of the Code of Virginia and shall issue certificates of completion .
10. The satisfaction of the training
				requirements of another state that are substantially similar to the provisions
				of this subsection shall be deemed to satisfy the training requirements of this
				subsection in this Commonwealth.
11. An insurer shall verify that an agent has
				completed the annuity training course required under this subsection before
				allowing the agent to sell an annuity product for that insurer. An insurer may
				satisfy its responsibility under this subsection by obtaining certificates of
				completion of the training course or obtaining reports provided by
				commission-sponsored database systems or vendors or from a reasonably reliable
				commercial database vendor that has a reporting arrangement with approved
				insurance education providers.