3 AAC 28.170 - Examination of agents and other persons

(a) No agent shall be eligible to sell or offer for sale a variable contract unless prior to making any solicitation or sale of such a contract, he also be licensed as a variable contract agent.

(b) Any agent who participates only in the sale or offering for sale of variable contracts that are not registered under the Federal Securities Act of 1933 need not be licensed as a variable contract agent.

(c) Any agent applying for a license as a variable contract agent shall do so by filing with the division of insurance, "Uniform Form AP for Securities Salesmen, Variable Contract Salesmen and Other Associated Persons."

(d) The licensing as a variable contract agent of any agent complying with (c) of this section, shall not become effective until such agent shall have satisfactorily passed a written examination upon securities and variable contracts. Such examination shall be divided into two parts. Part I shall be on securities generally. Part II shall deal with variable contracts and shall be composed of at least 15 questions, but not more than 50 questions, concerning the history, purpose, regulation, and sale of contracts on a variable basis.

(e) Part I of the examination shall be one of the following and shall be administered by the agency inferred:

(1) any state securities sales examination accepted by the Securities and Exchange Commission;

(2) the National Association of Securities Dealers, Inc. Examination for Principals, or Examination for Qualification as a Registered Representative;

(3) the various securities examinations required by the New York Stock Exchange, the American Stock Exchange, Pacific Stock Exchange, or any other registered national securities exchange;

(4) the Securities and Exchange Commission test given pursuant to sec. 15(b)(8) of the Securities Exchange Act of 1934;

(5) the examination recommended for the testing of variable contract agents by the NAIC when adopted by the insurance department of any state or territory of the United States and approved for use by such department by the Securities and Exchange Commission.

(f) Part II of the examination will be given in such places and at such times as the director shall from time to time designate. Upon application for license as a variable contract agent, the applicant shall be notified of the date of the next examination.

(g) The examination recommended for the testing of variable contract agents by the NAIC is hereby adopted for use in this state in its present form, or as it may be amended, and it shall be used in all tests given pursuant to this regulation.

(h) Any applicant for license as a variable contract agent shall not be required to take Part I of the NAIC examination if, at the time of application, evidence is presented that the applicant

(1) has previously passed an examination as defined in (e) of this section; or

(2) is currently registered with the federal Securities and Exchange Commission as a broker-dealer, or is currently associated with a broker-dealer and has met qualification requirements with respect to such association.

(i) Every applicant applying for license as a variable contract agent shall satisfactorily complete Part I of the examination required by (d) of this section with a grade determined by the administrator of the test to be passing, before a license may be issued.

(j) Every applicant applying for license as a variable contract agent shall satisfactorily complete Part II of the examination required by (d) of this section, with a grade of at least 70 percent, or shall present evidence of successful completion of either a variable contract examination given under the supervision of an insurance department of any state or territory of the United States which has adopted Part II of the examination recommended for the testing of variable contract agents by the NAIC or has been examined and licensed by any such department prior to its adoption of the NAIC Model Regulation.

(k) Any applicant failing to pass Part II of the examination may take Part II again 20 days after the first and any subsequent examination.

(l) Every application for a license as a variable contract agent shall be accompanied by an examination fee of $10. A fee of $10 will be charged for each re-examination administered to an applicant.

(m) Report of the results of any examination given pursuant to this regulation shall be made by the division of insurance on a form designated by the director.

(n) Except as modified by these regulations, the regulations of this division governing the licensing of life insurance agents including examinations therefor shall apply hereto.

(o) Results of the examination administered pursuant to (d) of this section will be reported by this division to the applicant's company. In addition, examination results will be reported by this division to any other state insurance department requesting confirmation of the examination grade, either upon request of such department or upon request of the applicant or his company.

(p) A charge of $5 shall be made for the second and each subsequent report of examination results.

(q) Records of the examination grade of each applicant upon an examination administered by this division or upon an examination administered by another agency or authority and reported to this division will be retained in the file pertaining to said applicant.

(r) Any person licensed in this state as a variable contract agent shall immediately report to the director

(1) any suspension or revocation of his variable contract agent's license or life insurance agent's license in any other state or territory of the United States,

(2) the imposition of any disciplinary sanction (including suspension or expulsion from membership, suspension or revocation of or denial of registration) imposed upon him by any national securities exchange, or national securities association, or any federal, or state or territorial agency with jurisdiction over securities or contracts on a variable basis;

(3) any judgment or injunction entered against him on the basis of conduct deemed to have involved fraud, deceit, misrepresentation, or violation of any insurance or securities law or regulation.

(s) The director may reject any application or suspend or revoke or refuse to renew any variable contract agent's license upon any ground that would bar such applicant or such agent from being licensed to sell life insurance contracts in this state. The rules governing any proceeding relating to the suspension or revocation of a life insurance agent's license shall also govern any proceeding for suspension or revocation of a variable contract agent's license.

(t) Renewal of a variable contract agent's license shall follow the same procedure established for renewal of an agent's license to sell life insurance contracts in this state.

Notes

3 AAC 28.170

Eff. 11/8/73, Register 48

In 2010 the revisor of statutes, acting under AS 01.05.031, renumbered former AS 21.42.370 as AS 21.42.315. As of Register 196 (January 2011), the regulations attorney made a conforming technical revision under AS 44.62.125(b)(6), to the authority citation that follows 3 AAC 28.170, so that the citation to former AS 21.42.370(j) now refers to the renumbered statute, AS 21.42.315.

Authority:AS 21.06.090

AS 21.42.315