Section 3120.60  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)         Training Requirements

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

2)         Insurance producers who hold a life insurance line of authority after July 31, 2023 and who desire to sell annuities shall complete the requirements of this subsection (b) by February 1, 2024. Individuals who obtain a life insurance line of authority on or after February 1, 2024 may not engage in the sale of annuities until the annuity training course required under this subsection has been completed.

3)         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.  When an annuity product offers any long-term care benefits as defined in 50 Ill. Adm. Code 2012.30, the insurance producer shall complete the training requirements in 50 Ill. Adm. Code 2012.121 prior to selling the annuity product.

4)         The training required under this Section shall include information on the following topics:

A)        The types of annuities and various classifications of annuities;

B)        Identification of the parties to an annuity;

C)        How product-specific annuity contract features affect consumers;

D)        The application of income taxation of qualified and non-qualified annuities;

E)        The primary uses of annuities; and

F)         Appropriate standard of conduct, sales practices, replacement, and disclosure requirements.

5)         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.

6)         A provider of an annuity training course intended to comply with this subsection (b) shall register as a CE provider in this State and comply with the rules applicable to insurance producer continuing education in 50 Ill. Adm. Code 3119.30.

7)         An insurance producer who completed an annuity training course approved by the Department before August 1, 2023 shall, by February 1, 2024, complete either:

A)        A new four-credit training course approved by the Department that covers the required topics of subsection (b)(4); or

B)        An additional one-time one-credit training course approved by the Department and provided by a Department-approved education provider on appropriate sales practices, replacement, and disclosure requirements under this Part.

8)         Annuity training courses may be conducted and completed by classroom, webinar, or self-study methods in accordance with 50 Ill. Adm. Code 3119.30.

9)         Providers of annuity training shall comply with the reporting requirements and shall issue certificates of completion in accordance with 50 Ill. Adm. Code 3119.30.

10)       The satisfaction of the training requirements of another state that are substantially similar to the provisions of this subsection (b) shall be deemed to satisfy the training requirements of this subsection (b) in Illinois.

11)       The satisfaction of the components of the training requirements of any course or courses with components substantially similar to the provisions of this subsection (b) shall be deemed to satisfy the training requirements of this subsection (b) in Illinois.

12)       An insurer shall verify that an insurance producer has completed the annuity training course required under this subsection (b) before allowing the insurance producer to sell an annuity product for that insurer. An insurer may satisfy its responsibility under this subsection (b)(12) by obtaining certificates of completion of the training course or obtaining reports provided by database systems or vendors sponsored by the insurance commissioners of other states or from a reasonably reliable commercial database vendor that has a reporting arrangement with approved insurance education providers.

(Source:  Amended at 47 Ill. Reg. 2312, effective February 3, 2023)