Insurance Compliance News: Virginia Will Require Producers to Complete Annuity Training
Recently VA amended Chapter 45 of Title 14 of the VA Administrative Code effective April 1, 2017.
The revised Rules require agents to complete a one-time, four (4) credit continuing education (C.E.) course on annuity products. The deadline for compliance with this training requirement is January 1, 2018, for agents currently holding a life insurance line of authority and who desire to sell annuities in Virginia. Agents who obtain a life insurance line of authority on or after January 1, 2018, must complete the C.E. requirement prior to soliciting annuities in Virginia.
VA non-resident agents are exempt if they have already completed a “substantially similar” course in their resident state.
What about other states who don’t have requirements? At the NAIC Spring, 2017 meeting I spoke with the New Mexico Commissioner. They do not have any requirements or pending legislation. His response in an email to me was, “We are gathering information on this subject at this time. We will have a better idea in October of 2017 as to what we will require of our Agents.”
According to the NAIC Annuity Suitability (A) Working Group, Vermont and Puerto Rico do not have any pending legislation. Arizona – who partially adopted the 2010 version – and Montana currently have pending legislations.
The NAIC Model Act requires an insurance producer who engages in the sale of annuity products to complete a one-time, four (4) hour credit training course approved by the state department of insurance where the transaction occurs. Most states have adopted one of the three versions of the Model Act. There is one state, California, which has an ongoing state training requirement for each license renewal period.
In some states, the departments of insurance require the insurers to add additional training over and above the state-specific training. The insurer is responsible for providing insurer product-specific training, which means that if a producer who sells annuity products is appointed with five different insurance companies, she or he must complete five separate training courses, one for each company. This would be in addition to the state requirement where the solicitation takes place.
To be compliant with all states’ requirements, is not an easy task. To determine if the non-resident state is reciprocal with the resident state requirement can be very challenging.
At VUE Software, we have a team of compliance analysts who are continually researching and reviewing compliance issues, and building state rules tables to ensure our clients are always in compliance. VUE Onboarding & Compliance, and VUE contracting & Compliance solutions automate this complex process and offers complete self-service automation of appointment requests, license terminations, and ongoing product training certification.