Section 3.26.778. Insurance producer annuity training requirement.

	(a)  An insurance producer may 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 insurer-provided product-specific training standards and materials to comply with this subsection. An insurance producer who desires to sell an annuity meets the requirements of this subsection if   
		(1) the insurance producer holds a life insurance line of authority on October 16, 2011 and completes the training requirements of this subsection after January 1, 2011 and before January 16, 2012; or  
		(2) the insurance producer obtains a life insurance line of authority after October 16, 2011 and completes the training requirements of this subsection before selling an annuity product.  
	(b)  An insurance producer who engages in the sale of an annuity product shall complete a one-time minimum four credit-hour annuity training course approved by the director and provided in accordance with AS 21.27.020 and 3 AAC 23.100 - 3 AAC 23.208 covering the course material listed in (c) of this section. An insurance producer who desires to sell an annuity meets the requirements of this section if  
		(1) the insurance producer holds a life insurance line of authority on October 16, 2011 and completes the training requirements of this subsection after January 1, 2011 and before April 16, 2012; or  
		(2) the insurance producer obtains a life insurance line of authority after October 16, 2011 and completes the training requirements of this subsection before selling an annuity product.  
	(c)  The annuity training required under (b) of this section must include at a minimum the following topics:  
		(1) the types of and various classifications of annuities;  
		(2) identification of the parties to an annuity;  
		(3) how fixed, variable, and indexed annuity contract provisions affect the consumer;  
		(4) the application of income taxation of qualified and non-qualified annuities;  
		(5) the primary uses of an annuity;  
		(6) the appropriate sales practices, replacement, and disclosure requirements that are consistent with 3 AAC 26.750 - 3 AAC 26.825.  
	(d)  The annuity training required under (b) of this section may not include the following topics:  
		(1) marketing information;  
		(2) sales techniques;  
		(3) specific information about a particular insurer's products.  
	(e)  The annuity training required under (b) of this section must comply with the applicable requirements under AS 21.27.020 and 3 AAC 23.100 - 3 AAC 23.208 and include a certificate of completion to an insurance producer who successfully completes the annuity training.  
	(f)  The annuity training required under (b) of this section may be conducted and completed by classroom or self-study that meets the applicable requirements under AS 21.27.020 and 3 AAC 23.100 - 3 AAC 23.208.  
	(g)  An insurance producer meets the training requirements in (b) of this section, if the insurance producer has satisfied substantially similar training requirements of another state.  
	(h)  The annuity training required under (b) of this section may be used to fulfill the credit hour requirements under AS 21.27.020 and 3 AAC 23.100 - 3 AAC 23.208.  
	(i)  An insurer shall verify that an insurance producer has completed the annuity training required under this section before allowing the insurance producer to sell an annuity product for the insurer.  

Authorities

21.06.090;21.36.020;21.36.030;21.36.040;21.36.050;21.36.900

Notes

Reference

3 AAC 26.775

Authority

AS 21.06.090 AS 21.36.020 AS 21.36.030 AS 21.36.040 AS 21.36.050 AS 21.36.900

History

Eff. 10/16/2011, Register 200; am 1/1/2014, Register 208