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D.C. Municipal Regulations (Last Updated: September 13, 2017) |
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Title 26. INSURANCE, SECURITIES, AND BANKING |
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SubTilte 26-A. INSURANCE |
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Chapter 26-A84. SUITABILITY IN ANNUITY TRANSACTIONS |
Section 26-A8404. INSURANCE PRODUCER TRAINING
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8404.1An insurance producer shall not solicit the sale of an annuity product unless the insurance producer has adequate knowledge of the product to recommend the annuity and the insurance producer is in compliance with the insurer’s standards for product training. An insurance producer may rely on the insurer-to provide product-specific training standards and materials to comply with this section.
8404.2An insurance producer who engages in the sale of annuity products shall complete a one-time four (4) credit training course approved by the Department.
8404.3Insurance producers who hold a life insurance line of authority on the effective date of this chapter and who desire to sell annuities shall complete the requirements of this section within six (6) months after the effective date of this chapter. Individuals who obtain a life insurance line of authority on or after the effective date of this chapter may not engage in the sale of annuities until the annuity training course required under this subsection has been completed.
8404.4The minimum length of the training required under this subsection shall be sufficient to qualify for at least four (4) CE credits, but may be longer.
8404.5The training required under this section 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 fixed, variable and indexed annuity contract provisions affect consumers;
(d)The application of income taxation of qualified and non-qualified annuities;
(e)The primary uses of annuities; and
(f)Appropriate sales practices, replacement and disclosure requirements.
8404.6Providers of courses intended to comply with this section 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.
8404.7A provider of an annuity training course intended to comply with this section shall register as a CE provider with the Department and comply with the applicable laws pertaining to insurance producer continuing education courses as set forth in 26 DCMR §§ 100, et seq.
8404.8Annuity training courses may be conducted and completed by classroom or self-study methods in accordance with 26 DCMR §§ 100, et seq.
8404.9Providers of annuity training shall comply with the reporting requirements and shall issue certificates of completion in accordance with 26 DCMR §§ 100, et seq.
8404.10The satisfactory compliance of another States’ training requirements that are substantially similar to the provisions of this section shall be deemed to have satisfied the training requirements of this section.
8404.11An insurer shall verify that an insurance 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 section by obtaining certificates of completion of the training course or obtaining reports provided by database system sponsored and maintained by the Commissioner, or a vendor, or from any other reasonably reliable commercial database vendor that has a reporting arrangement with the approved insurance education providers.