TITLE 50: INSURANCE
CHAPTER I: DEPARTMENT OF INSURANCE SUBCHAPTER ii: INSURANCE PRODUCERS, LIMITED INSURANCE REPRESENTATIVES AND REGISTERED FIRMS
PART 3120 SUITABILITY IN ANNUITY TRANSACTIONS
SECTION 3120.60 INSURANCE PRODUCER TRAINING


 

Section 3120.60  Insurance Producer Training

 

a)         An 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.

 

b)         The training requirements of subsection (c)(4) may be approved as contiuning education courses under Section 500-35(b)(1) of the Code.

 

c)         Training Requirements

 

1)         An insurance producer who engages in the sale of annuity products shall complete a one-time four hour credit training course approved by the Department.

 

2)         Insurance producers who hold a life insurance line of authority after June 30, 2012 and who desire to sell annuities shall complete the requirements of this Section by July 1, 2012. Individuals who obtain a life insurance line of authority may not engage in the sale of annuities until the annuity training course required under this Section has been completed.

 

3)         The minimum length of the training required under this Section shall be sufficient to qualify for at least four CE credits, but may be longer.  When an annuity product offers any long term care benefits as defined in 50 Ill. Adm. Code 2012.30, the insurance producer shall complete the training requirements in 50 Ill. Adm. Code 2012.121 prior to selling the annuity product.

 

4)         The 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.

 

5)         Providers 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.

 

6)         The satisfaction of these training requirements in any 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.

 

7)         An 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 subsection (b)(10) 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.

 

(Source:  Old Section 3120.60 renumbered to Section 3120.70; new Section 3120.60 added at 35 Ill. Reg. 16087, effective September 26, 2011)