Section 760 IAC 1-72-4.5 - Producer trainingAuthority: IC 27-4-9-4
Affected: IC 27-1-15.6-12; IC 27-1-15.6-19.5; IC 27-1-15.7-4; IC 27-4-1-4; IC 27-4-9
Sec. 4.5.
(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 this section.(b) A producer that engages in the sale of annuity products shall complete a one (1) time four (4) credit training course approved by the department and provided by a continuing education provider.(c) Producers that hold a life insurance line of authority on July 1, 2024, and desire to sell annuities shall complete the requirements of subsection (b) within six (6) 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 (b) has been completed.(d) The minimum length of the training required under subsection (b) is sufficient to qualify for at least four (4) CE credits, but may be longer.(e) The training required under this subsection shall include information on the following topics: (1) The types of annuities and various classifications of annuities.(2) Identification of the parties to an annuity.(3) How product specific annuity contract features affect consumers.(4) The application of income taxation of qualified and nonqualified annuities.(5) The primary uses of annuities.(6) Appropriate standard of conduct, sales practices, replacement, and disclosure requirements.(f) Providers of courses intended to comply with this section shall cover all topics listed in subsection (e), and shall not present any marketing information or provide training on sales techniques or specific information about a particular insurer's products. Additional topics may be offered in conjunction with and in addition to the topics listed in subsection (e).(g) A provider of an annuity training course intended to comply with this subsection shall register as a CE provider and comply with the rules and guidelines applicable to producer continuing education courses as set forth in IC 27-1-15.7-4.(h) A producer that has completed an annuity training course approved by the department prior to July 1, 2024, shall, within six (6) months after July 1, 2024, complete either: (1) a new four (4) credit training course approved by the department after July 1, 2024; or(2) an additional one (1) time one (1) credit training course approved by the department and provided by a CE provider on appropriate sales practices, replacement, and disclosure requirements under this rule.(i) Annuity training courses may be conducted and completed by classroom or self-study methods in accordance with IC 27-1-15.6-19.5(b)(4).(j) Providers of annuity training shall comply with the reporting requirements and shall issue certificates of completion in accordance with IC 27-1-15.7-4.(k) The satisfaction of the training requirements of another state that are substantially similar to the provisions of this section are deemed to satisfy the training requirements of this section.(l) The satisfaction of the components of the training requirements of a course or courses with components substantially similar to the provisions of this section are deemed to satisfy the training requirements of this section.(m) An insurer shall verify that a producer has completed the annuity training course required under this section before allowing the producer 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 commissioner-sponsored database systems or vendors, or from a reasonably reliable commercial database vendor that has a reporting arrangement with approved CE providers.Department of Insurance; 760 IAC 1-72-4.5; filed 2/8/2024, 12:47 p.m.: 20240306-IR-760230518FRA, eff 7/1/2024