SECTION 365:25-3-21. Training and education requirements for the sale of annuities

(a)   Training and education requirements for producers who sell, solicit or negotiate annuities.

(1)   An insurance producer shall not sell, solicit or negotiate the sale of an annuity product in this state 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.

(2)   An insurance producer who engages in the sale, solicitation or negotiation of annuity products shall be licensed as a producer with a Life line of Authority and complete a one-time, four (4) hour credit training course as set forth in subsection (b). The course shall be approved by the Insurance Department and provided by an Insurance Department-approved education provider. The continuing education as required by this paragraph shall be applied as a continuing education course under Section 1435.29 of Title 36 of the Oklahoma Statutes.

(3)   Insurance producers who currently hold a life insurance line of authority on the effective date of this regulation and who desire to sell annuities shall complete the training requirements of this subsection within twelve (12) months after July 14, 2010.

(4)   Individuals who obtain a life insurance line of authority on or after the July 14, 2010 may not engage in the sale, solicitation or negotiation of annuities until the annuity training course required under subsection (a)(2) has been completed.

(b)   Training education requirements.

(1)   The minimum length of the training required under this subsection shall be sufficient to qualify for at least four (4) CE credit hours, but may be longer.

(2)   The training required under this subsection shall include information on the following topics and any other topics approved and specified by the Insurance Commissioner:

(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.

(3)   Providers of courses intended to comply with this subsection 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.

(4)   Annuity training courses may be conducted and completed by classroom or self-study methods.

(c)   Insurer requirements. An insurer shall verify that an insurance producer has completed the annuity training course required under this subsection 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 insurance education providers.

(d)   Training received in other states. The satisfaction of the training requirements of another state that are substantially similar to the provisions of this subsection shall be deemed to satisfy the training requirements of this subsection in this state.

[Source: Added at 27 Ok Reg 1551, eff 7-14-10]