N.J. Admin. Code § 11:4-59A.4

Current through Register Vol. 56, No. 24, December 18, 2024

Section 11:4-59A.4 - Insurance producer training

(a) An insurance producer shall 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 insurer's standards for product training. An insurance producer may rely on insurer-provided product-specific training standards and materials to comply with this subsection.

(b) An insurance producer who engages in the sale of annuity products shall complete a one-time four-credit training course approved by the Department and provided by a Department-approved education provider.

(c) Insurance producers who hold a life insurance line of authority on February 4, 2013 and who desire to sell annuities shall complete the requirements of this section by August 4, 2013. Individuals who obtain a life insurance line of authority on or after February 4, 2013 may not engage in the sale of annuities until the annuity training course required under this section has been completed.

(d) The minimum length of the training required under this section shall be sufficient to qualify for at least four CE credits, but may be longer.

(e) The training required under this section shall include information on the topics set forth in the outline below:

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 laws and Internal Revenue Code provisions to qualified and non-qualified annuities;

5. The primary uses of annuities; and

6. Appropriate sales practices, replacement, and disclosure requirements.

(f) Providers of courses intended to comply with this section 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.

(g) A provider of an annuity training course intended to comply with this section shall register as a CE provider in this State and comply with the rules applicable to insurance producer continuing education providers and courses as set forth in N.J.A.C. 11:17-3.

(h) Annuity training courses may be conducted and completed by classroom or self-study methods in accordance with N.J.A.C. 11:17-3.

(i) Providers of annuity training shall comply with the reporting requirements and shall issue certificates of completion in accordance with N.J.A.C. 11:17-3.

(j) The satisfaction of the training requirements of another state that are substantially similar to the provisions of this section shall be deemed to satisfy the training requirements of this section in this State.

(k) An insurer shall verify that an insurance producer has completed the annuity training course required under this section before allowing the producer to sell an annuity product for that insurer. An insurer may satisfy its responsibility under this section by obtaining certificates of completion of the training course or obtaining reports provided by Commissioner-sponsored database systems or vendors or from a reasonably reliable commercial database vendor that has a reporting arrangement with approved insurance education providers.

N.J. Admin. Code § 11:4-59A.4