Nev. Admin. Code § 688A.Sec. 25 - NEW

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 product-specific training standards and materials provided by the insurer to comply with this subsection.

2. Before engaging in the solicitation or sale of an annuity, a producer must complete a one-time four credit training course approved pursuant to NAC 683A.335 by the Commissioner or a designated representative. A producer who holds a life insurance line of authority on the effective date of this section and who desires to sell annuities shall complete the requirements of this subsection not later than 6 months after the effective date of this section. An individual who obtains a life insurance line of authority on or after the effective date of this section may not engage in the sale of annuities until the annuity training course required under this subsection has been completed. A producer who has completed an annuity training course approved by the Commissioner or a designated representative prior to the effective date of this section shall, within 6 months after the effective date of this section, complete either:

(a) A new four credit training course approved by the Commissioner or a designated representative pursuant to NAC 683A.335 after the effective date of this section; or

(b) An additional one-time one credit training course approved by the Commissioner or a designated representative pursuant to NAC 683A.335 on appropriate sales practices, replacement and disclosure requirements under sections 3 to 27, inclusive.

3. The minimum length of the training required under subsection 2 shall be sufficient to qualify for at least 4 hours of continuing education credits but may be longer.

4. The training required under subsection 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 features affect consumers;

(d) The application of income taxation on qualified and non-qualified annuities; and

(e) Appropriate standards of conduct, sales practices, replacement and disclosure requirements.

5. A provider of a course intended to comply with the training requirements under subsection 2 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 the products of a particular insurer. Additional topics may be offered in conjunction with and in addition to the required outline.

6. A provider of an annuity training course intended to comply with the training requirements under subsection 2 shall comply with the rules and guidelines applicable to continuing education courses as set forth in NAC 683A.335, 683A.337 and 683A.340.

7. An annuity training course required by subsection 2 may be conducted and completed by classroom or self-study methods.

8. A provider of an annuity training course required by subsection 2 shall comply with the reporting requirements and shall issue certificates of completion in accordance with subsection 1 of NAC 683A.340.

9. The satisfaction of the training requirements of another 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.

10. The satisfaction of the components of the training requirements of any course or courses with components substantially similar to the provisions of this section, including, without limitation, a course which satisfies the requirements for contents of continuing education established by Rule 1240 of the Financial Industry Regulatory Authority, or any amendment or successor to such Rule, shall be deemed to satisfy the training requirements of this section in this State.

11. An insurer shall verify that a 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 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.

Notes

Nev. Admin. Code § 688A.Sec. 25

Added to NAC by Comm'r of Insurance by R109-23A, eff. 11/15/2024

NRS 679B.130