W. Va. Code R. § 114-11B-6

Current through Register Vol. XLI, No. 50, December 13, 2024

Section 114-11B-6 - Producer Training

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.

W. Va. Code R. § 114-11B-6