West Virginia Code of State Rules › Agency 114 - Insurance Commission › Title 114 - LEGISLATIVE RULE INSURANCE COMMISSIONER › Series 114-11B - Suitability In Annuity Transactions › Section 114-11B-6 - Producer Training

Current through Register Vol. XLI, No. 28, July 12, 2024
6.1. 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
				this section.
6.2. Training
				requirements.
6.2.1. A producer who engages in the
				sale of annuity products shall complete a one-time training course providing four CE
				credits and provided by a CE provider.
6.2.2. Producers who hold a life insurance line of
				authority on the effective date of this rule and who desire to sell annuities shall
				complete the requirements of subsection 6.2.1. of this rule within six months after
				the effective date of this rule. Individuals who obtain a life insurance line of
				authority on or after the effective date of this rule may not engage in the sale of
				annuities until the annuity training course required under subsection 6.2.1. of this
				rule has been completed.
6.2.3. The
				minimum length of the training required under subsection 6.2.1. of this rule shall
				be sufficient to qualify for at least four CE credits but may be longer.
6.2.4. The training required under subsection
				6.2.1. of this rule shall include information on the following topics:
6.2.4.a. The types of annuities and various
				classifications of annuities;
6.2.4.b.
				Identification of the parties to an annuity;
6.2.4.c. How product specific annuity contract
				features affect consumers;
6.2.4.d. The
				application of income taxation of qualified and non-qualified annuities;
6.2.4.e. The primary uses of annuities;
				and
6.2.4.f. Appropriate standard of
				conduct, sales practices, replacement and disclosure requirements.
6.2.5. Continuing education providers
				of courses intended to comply with this section shall cover all topics listed in the
				prescribed outline as set forth in subsection 6.2.4. of this rule 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.
6.2.6. A producer who has completed an annuity
				training course approved by the Commissioner prior to the effective date of this
				rule shall, within six months after the effective date of this rule, complete
				either:
6.2.6.a. A new four CE credit training
				course provided by a CE provider after the effective date of this rule; or
6.2.6.b. An additional one-time one CE credit
				training course provided by a CE provider on appropriate sales practices,
				replacement and disclosure requirements under this rule.
6.2.7. Annuity training courses may be conducted
				and completed by classroom or self-study methods in accordance with the Board of
				Insurance Agent Education in the manner set forth in W. Va. Code §
										33-12-8.
6.2.8. The training required by this section may
				be approved for continuing education credit by the Board of Insurance Agent
				Education in the manner as set forth in W. Va. Code §
										33-12-8.
6.2.9. The satisfaction of the training
				requirements of another state that are substantially similar to the provisions of
				this section shall be deemed to satisfy the training requirements of this section in
				this state.
6.2.10. The satisfaction of
				the components of the training requirements of any course or courses with components
				substantially similar to the provisions of this section shall be deemed to satisfy
				the training requirements of this section in this state.
6.2.11. An insurer subject to this rule shall
				verify that each producer appointed to sell its annuity products is compliant with
				this section before the producer is permitted to sell such products, shall maintain
				records supporting the verification as long as appointed by the company and for five
				years thereafter, and shall make the records available to the Commissioner upon
				request. An insurer may satisfy its verification responsibility under this
				subsection 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.