Section R590-230-5 - Producer Training(1) A producer may 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.(2)(a)(i) A producer who engages in the sale of annuity products on or after July 1, 2024, shall complete a one-time approved four credit training course.(ii) A producer who holds a life insurance line of authority before July 1, 2024, and who desires to sell an annuity shall complete the requirements of this subsection by July 1, 2025.(iii) A producer that obtains a life insurance line of authority on or after July 1, 2024, may not engage in the sale of an annuity until the required annuity training is completed.(iv) A producer who completed an approved training course under Subsections (2)(b), (2)(c), and (2)(d) between January 1, 2024 and July 1, 2024, is considered to have met the training requirements under this Subsection (2)(a).(b) The minimum length of the training under this Subsection (2) shall be sufficient to qualify for at least four continuing education credits but may be longer.(c) The training shall include information on the following topics:(i) the types of annuities and various classifications of annuities;(ii) identification of the parties to an annuity;(iii) how product specific annuity contract features affect consumers;(iv) the application of income taxation of qualified and non-qualified annuities;(v) the primary uses of annuities; and(vi) appropriate standards of conduct, sales practices, replacement, and disclosure requirements.(d)(i) A provider of a course complying with this section shall cover all topics listed in the prescribed outline and may not present any marketing information or provide training on sales techniques or provide specific information about a particular insurer's products.(ii) Additional topics may be offered in conjunction with and in addition to the required outline.(e) A provider of an annuity course complying with this section shall register as a continuing education provider and comply with Section 31A-23a-202 and Rule R590-142.(f) A producer who, before July 1, 2024, completed an annuity training course that does not meet the standards under Subsections (2)(b), (2)(c), and (2)(d) shall, by July 1, 2025, complete either:(i) a new four credit approved annuity training course on appropriate sales practices, replacement, and disclosure requirements under the amended provisions of this rule; or(ii) an additional one-time single credit approved annuity training course on appropriate sales practices, replacement, and disclosure requirements under the amended provisions of this rule.(g) An annuity training course may be conducted and completed by classroom or self-study methods.(h) Satisfying the training requirements of another state that are substantially similar to the requirements of this subsection shall satisfy the training requirements.(i) Satisfying the components of the training requirements of any course or courses with components substantially similar to the requirements of this subsection shall satisfy the training requirements.(j)(i) An insurer shall verify that a producer has completed the required annuity training course before allowing the producer to sell an annuity product for that insurer.(ii) An insurer may satisfy its responsibility under this Subsection (2)(j) by obtaining certificates of completion of the training course or obtaining reports provided by database systems or vendors, or from a reasonably reliable commercial database vendor that has a reporting arrangement with approved insurance education providers.Utah Admin. Code R590-230-5
Amended by Utah State Bulletin Number 2023-24, effective 12/8/2023Amended by Utah State Bulletin Number 2024-12, effective 6/7/2024