Annuity Suitability NAIC Training Requirements

Alaska - The state's Suitability in Annuity training requirement was adopted on 10/16/2011 with an effective date of 1/1/2012. Producers licensed as of the effective date must complete a one-time 4-hour annuity training course by 4/16/2012, while producers and brokers licensed after that date must complete the course before representing annuities. Producers must also be in compliance with the represented carrier's product training requirements.

Training Effective Date - 10/16/2011
Producers Licensed Before Effective Date Must Complete Training - By 4/16/2011
Producers Licensed After Effective Date Must Complete Training - Before representing annuity products
Minimum Course Length - 4 Hours
State-Specific Content Required - No
Refresher Training Requirement - None
Who May Take an NAIC Course Approved For Use in Another Licensed State - Resident and non-resident brokers/producers
Amended 3 AAC 26.110

California - As of 1/1/2005, all brokers/producers are required to complete an initial 8-hour course before representing annuities, followed by a 4-hour course during each subsequent license term. In early 2011 the state made some minor changes to its ongoing (4 hour) training requirement which may allow carriers to consider four-hour CA completions to be reciprocal to states that have implemented training requirements based on the 2010 Suitability in Annuities NAIC Regulation; however, these changes appear to be a one-way door (in other words, all resident and non-resident CA producers must still complete a CA course every licensing term whether or not a 4-hour course is completed in another licensed state).

California courses are not eligible for ClearCert Certification at this time as the producer is directly responsible to the state department for compliance (instead of the insurance carrier, as with the 2010 Regulation).

Training Effective Date - 9/29/2003
Producers Licensed Before Effective Date Must Complete Training - Before representing annuity products
Producers Licensed After Effective Date Must Complete Training - Before representing annuity products
Minimum Course Length - 8 Hours
State-Specific Content Required - Yes
Refresher Training Requirement - A four-hour course must be completed each license biennium following initial training completion
Who May Take an NAIC Course Approved For Use in Another Licensed State - No one
California Annuity Training FAQs

Colorado

Training Effective Date - 4/1/2011
Producers Licensed Before Effective Date Must Complete Training - By 10/1/2011
Producers Licensed After Effective Date Must Complete Training - Before representing annuity products
Minimum Course Length - 4 Hours
State-Specific Content Required - No
Refresher Training Requirement - None
Who May Take an NAIC Course Approved For Use in Another Licensed State - Resident and non-resident brokers/producers
Colorado Regulation 3 CCR 702-4

District of Columbia

Training Effective Date - 6/24/2011
Producers Licensed Before Effective Date Must Complete Training - By 12/24/2011
Producers Licensed After Effective Date Must Complete Training - Before representing annuity products
Minimum Course Length - 4 Hours
State-Specific Content Required - No
Refresher Training Requirement - None
Who May Take an NAIC Course Approved For Use in Another Licensed State - Resident and non-resident brokers/producers
Suitability in Annuities Chapter 26-A8404

Hawaii - Hawaii brokers and producers licensed before 1/1/2012 must complete a four-hour state-approved annuity course no later than 1/31/2012. Those licensed after that date must complete the course before representing annuities.

Hawaii's regulations do not allow reciprocity for completing courses in another state, although the state is reviewing whether to allow this change in the insurance code.

Training Effective Date - 1/1/2012
Producers Licensed Before Effective Date Must Complete Training - By 10/1/2011
Producers Licensed After Effective Date Must Complete Training - Before representing annuity products
Minimum Course Length - 4 Hours
Who May Take an NAIC Course Approved For Use in Another Licensed State - No one
Act 108
Commissioner's Memorandum 2011-2LIC

Iowa - Iowa brokers and producers licensed before 1/1/2011 must complete a four-hour state-approved annuity course no later than 10/1/2011. Those licensed after that date must complete the course before representing annuities.

Iowa has an additional four-hour training requirement in effect for brokers representing indexed annuities.

Training Effective Date - 1/1/2011
Producers Licensed Before Effective Date Must Complete Training - By 10/1/2011
Producers Licensed After Effective Date Must Complete Training - Before representing annuity products
Minimum Course Length - 4 Hours
State-Specific Content Required - No
Refresher Training Requirement - None
Who May Take an NAIC Course Approved For Use in Another Licensed State - Resident and non-resident brokers/producers
Chapter 15 Unfair Trade Practices (see page 25 for annuity suitability training requirements)

Illinois - Illinois has added mandatory training for annuity producers to the state's insurance code.  Current producers have until 7/1/2012 to complete a one-time 4-hour annuity suitability course.  Those licensed after that date must complete training before representing annuities. The code states that brokers representing annuities with long term care benefits must also comply with the state's LTCI training requirement.

Brokers and producers must also be in compliance with the insurer's standards for product training.

Training Effective Date - 10/7/2011
Producers Licensed Before Effective Date Must Complete Training - By 7/1/2012
Producers Licensed After Effective Date Must Complete Training - By 7/1/2012
Minimum Course Length - 4 Hours
State-Specific Content Required - No
Refresher Training Requirement - None
Who May Take an NAIC Course Approved For Use in Another Licensed State - Resident and non-resident brokers/producers
Title 50 Section 3160.60 Insurance Producer Training

Indiana - Effective January 1st 2012, newly licensed Indiana brokers and producers must complete a four-hour state-approved annuity course before representing annuity products. Those licensed prior to that date have until July 1, 2012 to complete a course.

Training Effective Date - 1/1/2012
Producers Licensed Before Effective Date Must Complete Training - By 7/1/2012
Producers Licensed After Effective Date Must Complete Training - Before representing annuity products
Minimum Course Length - 4 Hours
State-Specific Content Required - No
Refresher Training Requirement - None
Who May Take an NAIC Course Approved For Use in Another Licensed State - Non-resident brokers/producers whose resident states have implemented a similar requirement
Bulletin 184

Kentucky - Effective January 1st 2012, newly licensed Kentucky brokers and producers must complete a four-hour state-approved annuity course before representing annuity products. Those licensed prior to that date have until July 1, 2012 to complete a course.

Training Effective Date - 1/1/2012
Producers Licensed Before Effective Date Must Complete Training - By 7/1/2012
Producers Licensed After Effective Date Must Complete Training - Before representing annuity products
Minimum Course Length - 4 Hours
State-Specific Content Required - No
Refresher Training Requirement - None
Who May Take an NAIC Course Approved For Use in Another Licensed State - Resident and non-resident brokers and producers
Suitability in Annuities Training Memo

Maryland - Implementation guidelines for Maryland's updated COMAR 31.09.12.08 are effective November 1st, 2011. Resident producers must complete a Maryland-approved course. Courses must be approved for exactly four credit hours.

Training Effective Date - 11/1/2011
Producers Licensed Before Effective Date Must Complete Training - By 5/1/2012
Producers Licensed After Effective Date Must Complete Training - Before representing annuity products
Minimum Course Length - 4 Hours
State-Specific Content Required - No
Refresher Training Requirement  - None
Who May Take an NAIC Course Approved For Use in Another Licensed State - Non-resident brokers/producers
Bulletin 11-28

North Dakota - Producers land brokers licensed to represent annuities prior to 8/1/2011 have one full year from that date to complete a one-time 4-hour course. Producers and brokers licensed after 8/1/2011 must complete a 4-hour course before representing annuities.

Training Effective Date - 8/1/2011
Producers Licensed Before Effective Date Must Complete Training - By 8/1/2012
Producers Licensed After Effective Date Must Complete Training - Before representing annuity products
Minimum Course Length - 4 Hours
State-Specific Content Required - No
Refresher Training Requirement  - None
Who May Take an NAIC Course Approved For Use in Another Licensed State - Resident and non-resident brokers/producers
H.B. 1160 Section 4

Ohio - Ohio brokers and producers licensed prior to 7/1/2011 must complete an initial four-hour state-approved annuity course by 1/1/2012. Those licensed on or after that date must complete the course before representing annuities.

Training Effective Date - 7/1/2011
Producers Licensed Before Effective Date Must Complete Training - By 1/1/2012
Producers Licensed After Effective Date Must Complete Training - Before representing annuity products
Minimum Course Length - 4 Hours
State-Specific Content Required - No
Refresher Training Requirement  - None
Who May Take an NAIC Course Approved For Use in Another Licensed State - Non-resident brokers/producers
3901-6-13 Suitability in Insurance Transactions

Oklahoma - Oklahoma brokers and producers licensed prior to 7/14/2010 must complete an initial four-hour state-approved annuities course by 7/14/2011. Those licensed on or after that date must complete the course before representing annuities.

January 2012 - Oklahoma published a bulletin clarifying the 2010 training requirement. Oklahoma does not require carrier-provided, product-specific training.

Training Effective Date - 7/14/2010
Producers Licensed Before Effective Date Must Complete Training - By 7/14/2011
Producers Licensed After Effective Date Must Complete Training - Before representing annuity products
Minimum Course Length - 4 Hours
State-Specific Content Required - No
Refresher Training Requirement - None
Who May Take an NAIC Course Approved For Use in Another Licensed State - Resident and non-resident brokers/producers
Title 365:25-3-21 (see page 29 for annuity suitability training requirements)
Annuity Training Clarification January 2012

Oregon

Training Effective Date - 7/1/2011
Producers Licensed Before Effective Date Must Complete Training - By 1/1/2012
Producers Licensed After Effective Date Must Complete Training - Before representing annuity products
Minimum Course Length - 4 Hours
State-Specific Content Required - No
Refresher Training Requirement - None
Who May Take an NAIC Course Approved For Use in Another Licensed State - Resident and non-resident brokers/producers
836-080-0170 Suitability in Annuity Transactions

Rhode Island

Training Effective Date - 6/1/2011
Producers Licensed Before Effective Date Must Complete Training - By 12/1/2011
Producers Licensed After Effective Date Must Complete Training - Before representing annuity products
Minimum Course Length - 4 Hours
State-Specific Content Required - No
Refresher Training Requirement - None
Who May Take an NAIC Course Approved For Use in Another Licensed State - Resident and non-resident brokers/producers
Insurance Regulation 12 Suitability in Annuities Transactions

South Carolina

Training Effective Date - 9/25/2011
Producers Licensed Before Effective Date Must Complete Training - By 3/25/2012
Producers Licensed After Effective Date Must Complete Training - Before representing annuity products
Minimum Course Length - 4 Hours
State-Specific Content Required - No
Refresher Training Requirement - None
Who May Take an NAIC Course Approved For Use in Another Licensed State - Resident and non-resident brokers/producers
Regulation Chapter 69-29

Texas - Texas House Bill 2277F introduced a number of changes to the state's former annuity training requirement that make it largely compatible with the 2010 Model Regulation, including insurer responsibility for validating broker compliance with state and carrier product training. These changes make the requirement compatible with the ClearCert model, so Texas has been added to the states administered by ClearCert.

Additional guidance is expected that may have an impact on the transition to the new requirement. For example, after completing an initial 4-hour course 8 hours worth of training "that specifically relates to annuities" must be completed during each licensing period. It is not yet clear whether the state will create a category for eligible courses, or whether this training must be completed during the term in which the producer completes initial training or during subsequent terms.

Training Effective Date - 9/1/2010
Producers Licensed Before Effective Date Must Complete Training - Before representing annuity products
Producers Licensed After Effective Date Must Complete Training - Before representing annuity products
Minimum Course Length - 4 Hours
State-Specific Content Required - No
Refresher Training Requirement - Eight hours of training that specifically relates to annuities each licensing term (applies to residents only)
Who May Take an NAIC Course Approved For Use in Another Licensed State - Resident and non-resident brokers/producers
Texas HB02277
Texas HB2154F
 

Wisconsin

Training Effective Date - 5/1/2011
Producers Licensed Before Effective Date Must Complete Training - By 11/1/2011
Producers Licensed After Effective Date Must Complete Training - Before representing annuity products
Minimum Course Length - 4 Hours
State-Specific Content Required - Yes
Refresher Training Requirement - None
Who May Take an NAIC Course Approved For Use in Another Licensed State - Resident and non-resident brokers/producers
Chapter 628.347 Insurance Marketing (see page 8 for annuity suitability training requirements)