A. Requirements of Adequate Knowledge.
(1) An insurance producer may 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 insurerís standards for product training.
(2) An insurance producer may rely on insurer-provided, product-specific training standards and materials to comply with this section.
B. An insurance producer who engages in the sale of annuity products shall complete a one-time, four-credit training course approved by the Administration and provided by an Administration-approved continuing education provider.
C. Dates by Which Training Must Be Met.
(1) Insurance producers who hold a license as an insurance producer for life insurance on the effective date of this regulation and who desire to sell annuities shall complete the requirements of this regulation within 6 months after the effective date of this regulation.
(2) Individuals who obtain a license as an insurance producer for life insurance on or after the effective date of this regulation may not engage in the sale of annuities until the annuity training course required under this regulation has been completed.
D. The minimum length of the training required under this regulation shall be sufficient to qualify for at least four continuing education credits but may be longer.
E. The training required under this regulation shall include information on the following topics:
(1) The types of annuities and various classifications of annuities;
(2) Identification of the parties to an annuity;
(3) How fixed, variable, and indexed annuity contract provisions affect consumers;
(4) The application of income taxation of qualified and nonqualified annuities;
(5) The primary uses of annuities; and
(6) Appropriate sales practices, and requirements for replacement and disclosure.
F. Training Courses.
(1) A continuing education provider of courses intended to comply with this regulation shall cover all topics listed in the prescribed outline and may not present any marketing information, provide training on sales techniques, or provide specific information about a particular insurerís products.
(2) Additional topics may be offered in conjunction with and in addition to the required outline.
G. A continuing education provider of an annuity training course intended to comply with this regulation shall comply with the rules and guidelines applicable to insurance producer continuing education courses as set forth in COMAR 31.03.02.07.
H. Annuity training courses may be conducted and completed by classroom or self-study methods in accordance with COMAR 31.03.02.03.
I. A continuing education provider of annuity training shall comply with the reporting requirements in accordance with COMAR 31.03.02.09.
J. The satisfaction of the training requirements of another state that are substantially similar to the provisions of this regulation shall be deemed to satisfy the training requirements of this regulation in this State, at the discretion of the Commissioner.
K. Insurer Responsibilities.
(1) An insurer shall verify that an insurance producer has completed the annuity training course required under this regulation before allowing the producer to sell an annuity product for that insurer.
(2) An insurer may satisfy its responsibility under this regulation by obtaining certificates of completion of the training course from a reasonably reliable commercial database vendor that has a reporting arrangement with approved insurance education providers.