Section 031-917-7 - Producer Training1. 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 is in compliance with the insurer's standards for product training. A producer may rely on insurer-provided product-specific training standards and materials to comply with this subsection.2.A.(1) A producer who engages in the sale of annuity products shall complete a one-time four (4) credit hour training course approved by the Bureau of Insurance and provided by a vendor approved by the Bureau of Insurance.(2) Producers who hold a life insurance line of authority on the effective date of the 2021 amendments to this rule and who desire to sell annuities shall complete a training course that satisfies the requirements of this subsection no later than six (6) months after the effective date of the amendments. Producers whose life insurance line of authority is obtained on or after the effective date of the amendments may not engage in the sale of annuities until the annuity training course required under this subsection has been completed.B. The length of the training required under this subsection shall be sufficient to qualify for at least four (4) CE credit hours. If a course covers additional subject matter beyond the topics required by this subsection, only the pertinent subject matter shall count toward the four (4)-hour minimum.C. The training required under this subsection 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 product-specific annuity contract features affect consumers;(4) The application of income taxation of qualified and non-qualified annuities;(5) The primary uses of annuities; and(6) Appropriate standards of conduct, appropriate sales practices, and replacement and disclosure requirements. Courses completed on or after the effective date of the 2021 amendments to this rule must address the requirements of the amended rule.D. Vendors providing courses intended to comply with this subsection 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 a particular insurer's products. Additional topics may be offered in conjunction with and in addition to the required outline.E. A vendor providing an annuity training course intended to comply with this subsection shall register as a CE vendor in this State and comply with the rules and guidelines applicable to producer continuing education courses as set forth in Bureau of Insurance Rule Chapter 542: "Educational Requirements for Insurance Professionals."F. A producer who has satisfied the requirements of paragraph A by completing an annuity training course based on a prior version of this rule shall, no later than six (6) months after the effective date of this rule, complete a course providing training on appropriate standards of conduct, appropriate sales practices, and replacement and disclosure requirements under this amended rule. The course may be either: (1) A four (4) credit training course approved by the Bureau of Insurance under paragraph A; or(2) A one (1) credit training course approved by the Bureau of Insurance and provided by a Bureau of Insurance-approved education provider.G. Annuity training courses may be conducted and completed by classroom or self-study methods in accordance with Bureau of Insurance Rule Chapter 542: "Educational Requirements for Insurance Professionals."H. Vendors that provide annuity training shall comply with the reporting requirements and shall issue certificates of completion in accordance with Bureau of Insurance Rule Chapter 542: "Educational Requirements for Insurance Professionals."I. The satisfaction of the training requirements of another state that are substantially similar to the provisions of this subsection shall be deemed to satisfy the training requirements of this subsection in this State.J. A producer may satisfy the training requirements of this subsection by taking two or more approved courses if those courses, combined into a single course, would meet the requirements of this subsection.K. An insurer must verify that a producer has completed the annuity training course required under this subsection 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 database systems or vendors authorized by the Superintendent or from a reasonably reliable commercial database vendor that has a reporting arrangement with approved continuing education vendors.02-031 C.M.R. ch. 917, § 7