211 CMR 96.06 - Producer Training

(1) A producer shall not solicit the sale of an annuity product unless the producer has adequate knowledge of the product to recommend the annuity and the producer is in compliance with the insurer's standards for product training. A producer may rely on insurer-provided product-specific training standards and materials to comply with 211 CMR 96.06.

(2)

(a) A producer who engages in the sale of annuity products shall complete a one-time training course for four CE credits, approved by the Commissioner and provided by a continuing education provider.

(b) Producers who obtain a new life insurance line of authority may not engage in the sale of annuities until the annuity training course required under 211 CMR 96.06 has been completed.

(3) The minimum length of the training required under 211 CMR 96.06(2) shall be sufficient to qualify for at least four CE credits but may be longer.

(4) The training required under 211 CMR 96.06(2) 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 product specific 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 standards of conduct, sales practices, replacement and disclosure requirements.

(5) Training courses intended to comply with this subsection shall cover all topics listed in 211 CMR 96.06(4) 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 topics.

(6) A provider of an annuity training course intended to comply with 211 CMR 96.06 shall register as a CE provider in this Commonwealth and comply with the rules and guidelines applicable to producer continuing education courses as set forth in M.G.L. c. 175, § 177E, and 211 CMR 50.00: Continuing Education for Insurance Producers.

(7) A producer who has completed an annuity training course approved by the Commissioner shall, by June 1, 2023 complete either:

(a) A new four-credit training course approved by the Commissioner; or

(b) An additional one time one credit course approved by the Commissioner and provided by a continuing education provider on appropriate sales practices, replacement and disclosure requirements under 211 CMR 96.00.

(8) Annuity training courses may be conducted and completed by classroom or self-study methods in accordance with M.G.L. c. 175, § 177E and 211 CMR 50.00: Continuing Education for Insurance Producers.

(9) Providers of annuity training shall comply with the reporting requirements and shall issue certificates of completion in accordance with M.G.L. c. 175, § 177E and 211 CMR 50.00: Continuing Education for Insurance Producers.

(10) The satisfaction of training requirements of another State that are substantially similar to the provisions of 211 CMR 96.06 shall be deemed to satisfy the training requirements of 211 CMR 96.06.

(11) The satisfaction of the components of the training requirements of any course or courses with components substantially similar to the provisions of 211 CMR 96.06 shall be deemed to satisfy the training requirements of 211 CMR 96.06.

(12) An insurer shall verify that a producer has completed the annuity training course required under 211 CMR 96.06 before allowing the producer to sell an annuity product for that insurer. An insurer may satisfy its responsibility under 211 CMR 96.06(12) 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 continuing education providers.

Notes

211 CMR 96.06

Amended by Mass Register Issue 1316, eff. 7/1/2016. Amended by Mass Register Issue 1484, eff. 12/9/2022.