211 CMR 96.06 - Insurance Producer Training

Current through Register 1466, April 1, 2022

(1) 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. An insurance producer may rely on insurer-provided product-specific training standards and materials to comply with 211 CMR 96.06.

(2)

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

(b) Insurance producers who hold a life insurance line of authority on July 1, 2016 and who desire to sell annuities shall complete the requirements of 211 CMR 96.06(2) on or before December 31, 2016. Individuals who obtain a life insurance line of authority on or after July 1, 2016 may not engage in the sale of annuities until the annuity training course required under this subsection 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 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) Training courses intended to comply with 211 CMR 96.06 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 additional 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 insurance 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) 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.

(8) An insurer shall verify that an insurance 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(8) by obtaining certificates of completion of the training course or CE transcripts from the insurance Producer.

Notes

211 CMR 96.06

Amended by Mass Register Issue 1316, eff. 7/1/2016.