Subdivision 1. Requirement. 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 section.
Subd. 2. Initial training. (a) An insurance producer who is otherwise entitled to engage in the sale of annuity products shall complete a onetime four-credit training course approved by the commissioner and provided by a continuing education provider approved by the commissioner prior to commencing the transaction of annuities.
Insurance producers who hold a life insurance line of authority on December 31, 2022, and who desire to sell annuities shall complete the requirements of this subdivision no later than six months after January 1, 2023. Individuals who obtain a life insurance line of authority on or after January 1, 2023, may not engage in the sale of annuities until the annuity training course required under this subdivision has been completed.
(b) The length of the training required under this subdivision must be four continuing education hours.
(c) The training required under this subdivision must 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;
(6) appropriate standard of conduct, sales practices, replacement, and disclosure requirements; and
(7) the recognition of indicators that a prospective insured may lack the short-term memory or judgment to knowingly purchase an insurance product.
(d) Providers of courses intended to comply with this subdivision 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.
(e) A provider of an annuity training course intended to comply with this subdivision must be an approved continuing education provider in this state and comply with the requirements applicable to insurance producer continuing education courses.
(f) An insurance producer licensed by December 31, 2022, who holds a life insurance line of authority and has previously completed the training in subdivision 2, paragraph (a), shall complete either:
(1) a new four-credit training course approved by the Department of Commerce after July 1, 2022; or
(2) an additional onetime one-credit training course approved by the Department of Commerce after July 1, 2022, and provided by a Department of Commerce-approved education provider on appropriate sales practices and replacement and disclosure requirements under sections 72A.203 to 72A.2036.
Annuity training courses may be conducted and completed by classroom or self-study methods in accordance with chapter 45. In order to assist compliance with this section, all courses approved by the commissioner for the purposes of this section shall be given the course title "Best Interest Standards of Conduct for Annuity Sales." Only courses satisfying the requirements of this section shall use this course title after July 1, 2022.
(g) Providers of annuity training shall comply with the course completion reporting requirements of chapter 45.
(h) The satisfaction of the training requirements of another state that are substantially similar to the provisions of this subdivision satisfies the training requirements of this subdivision in this state.
(i) The satisfaction of the components of the training requirements of any course or courses with components substantially similar to the provisions of this subdivision satisfy the training requirements of this subdivision.
(j) An insurer shall verify that an insurance producer has completed the annuity training course required under this subdivision before allowing the insurance producer to sell an annuity product for that insurer. An insurer may satisfy its responsibility under this subdivision by obtaining certificates of completion of the training course or obtaining reports provided by commissioner-sponsored database systems, vendors, or from a reasonably reliable commercial database vendor that has a reporting arrangement with approved insurance education providers. If such data collection and reporting arrangements are not in place, an insurer must maintain records verifying that the producer has completed the annuity training course required under this subdivision and make the records available to the commissioner upon request.
2013 c 54 s 4; 2022 c 84 s 20
Structure Minnesota Statutes
Chapters 59A - 79A — Insurance
Chapter 72A — Insurance Industry Trade Practices
Section 72A.02 — Violations As To Policies Of Insurance.
Section 72A.03 — Agent Of Insurer; Procuring Premiums By Fraud.
Section 72A.04 — False Statements In Application.
Section 72A.05 — Failure To Make Report Or Comply With Law.
Section 72A.061 — Mandatory Filings; Failure To Comply; Penalties.
Section 72A.07 — Violations Of Laws Relating To Agents, Penalties.
Section 72A.09 — Violations Where Offense Is Not Specifically Designated.
Section 72A.10 — Failure To Appear Or Obstructing Commissioner.
Section 72A.11 — Complainant Entitled To One-half Of Fine In Certain Cases.
Section 72A.12 — Life Insurance.
Section 72A.125 — Rental Vehicle Personal Accident Insurance; Special Requirements.
Section 72A.13 — Accident And Health Insurance, Violations Of Certain Sections.
Section 72A.135 — Failure To Follow Dividend And Pricing Policy; Penalties.
Section 72A.139 — Use Of Genetic Tests.
Section 72A.15 — Penalty For Violation Of Law Providing For Insurance In Unlicensed Companies.
Section 72A.16 — Mutual Companies.
Section 72A.17 — Purpose Of Sections 72a.17 To 72a.32.
Section 72A.19 — Unfair Methods And Unfair Or Deceptive Acts And Practices.
Section 72A.20 — Methods, Acts, And Practices Which Are Defined As Unfair Or Deceptive.
Section 72A.201 — Regulation Of Claims Practices.
Section 72A.2031 — Definitions.
Section 72A.2032 — Duties Of Insurers And Insurance Producers.
Section 72A.2033 — Insurance Producer Training.
Section 72A.2035 — Record Keeping.
Section 72A.2036 — Relationship To Other Laws; Enforcement.
Section 72A.204 — Prohibited Uses Of Senior-specific Certifications And Professional Designations.
Section 72A.207 — Graded Death Benefits.
Section 72A.21 — Power Of Commissioner.
Section 72A.22 — Hearing; Witnesses; Production Of Books.
Section 72A.25 — Unfair Competition.
Section 72A.26 — Intervention.
Section 72A.285 — Claim For Insurance Benefits; Release Of Summary Information.
Section 72A.29 — Concurrent Remedies.
Section 72A.30 — Evidential Privilege Denied; Immunity; Waiver.
Section 72A.31 — Certain Acts Deemed Unfair Method Of Competition.
Section 72A.32 — Violations, Procedure.
Section 72A.325 — Insurance For Funeral Or Burial Expense; Freedom Of Choice.
Section 72A.328 — Affinity Group.
Section 72A.33 — Purpose Of Act, Construction.
Section 72A.35 — Notice To Domiciliary Supervisory Official.
Section 72A.36 — Action By Commissioner.
Section 72A.37 — Service Upon Unauthorized Insurer.
Section 72A.38 — Severability.
Section 72A.41 — Transacting Business Without Certificate Of Authority.
Section 72A.42 — Enforcement Authority.
Section 72A.43 — Service Of Process Upon Unauthorized Company By Commissioner.
Section 72A.491 — Definitions.
Section 72A.493 — Obtaining Information By Improper Means.
Section 72A.495 — Marketing And Research Surveys.
Section 72A.496 — Investigative Consumer Reports.
Section 72A.497 — Access To Personal Information.
Section 72A.498 — Correction, Amendment, Or Deletion Of Personal Information.
Section 72A.499 — Reasons For Adverse Underwriting Decisions.
Section 72A.50 — Previous Adverse Underwriting Decisions.
Section 72A.501 — Disclosure Authorization.
Section 72A.502 — Disclosure Of Information; Limitations And Conditions.
Section 72A.503 — Private Remedies.
Section 72A.504 — Obtaining Information Under Improper Means.