Annuity Training Law

Annuity Training Courses

Continuing Education

Effective Date

Exemptions

Non-Resident Licensees

Notice to Insurers

Training Requirement

Annuity Training List Reports

Annuity Training Law

1. Where can I find out more information about the law?
SB 620 (Scott, Chapter 547, Statutes of 2003), Annuities: life insurance: required disclosures and prohibited sales practices was signed in to law on September 29, 2003. This law enacted new life agent training requirements as stated in section 1749.8 of the California Insurance Code.

Back to Top

Annuity Training Courses
1. Have courses been approved to satisfy the eight-hour annuity training requirement?
Yes, both classroom and correspondence courses have been approved by the California Department of Insurance (CDI) to meet this requirement. A listing of the courses approved by the CDI can be accessed on this Web site using the following link: education provider/course search. Be sure to select "Life Agent" as the License Type, "Continuing Education" as the Education Type, and "2004 Annuity" as the Category Type.

2. Are there any courses approved to satisfy the four-hour annuity training requirement?
The four hour training course guidelines have been developed and courses can now be accessed using the CDI's education provider/course search program.  

Back to Top

Training Requirement
1. What is the new California annuities training requirement?
California law now requires eight hours of California specific annuities training and four hours continuing training, for all Life agents who sell annuities in California.

2. What kind of training is required?
The law requires training in annuities; California law, regulations, and requirements related to annuities; prohibited sales practices; and fraudulent and unfair trade practices.

3. When must the eight-hour annuity training requirement be completed?
The eight-hour annuity training course must be completed prior to soliciting the sale of any annuity products.

4. What does the CDI do to verify that all life agents that sell annuities have completing the required training?
To verify that agents selling annuities are meeting the training requirement, the CDI provided an Annuity Training Report to enable insurers and agencies to verify their agents' course completion.

In addition, the CDI will be checking insurer's records during market conduct reviews. Legal action may be pursued if agents are found to not be meeting the annuity training requirement.

5. Does the training have to be provided in a classroom?
No, the training may be either classroom or home study (i.e. print textbook or online)

6. Do I need to send in any proof of completing the training?
No. The approved provider will submit the information directly to the CDI. However, you will receive a Certificate of Completion from the provider which you must keep in your records.

7. Doesn't this new requirement apply only to those who sell annuities in the senior market?
No, it applies to every life agent who sells annuities.

8. If the training is not completed will my agent's variable authority be terminated?
No, your license will still be effective; however, you must complete the training before you can sell any type of annuities.

9. Does the requirement apply to the sale of fixed and indexed annuities as well as variable annuities?
Yes, the requirement applies to all types of annuities.

Back to Top

Effective Date
1. When does the requirement go into effect?
Effective January 1, 2005 any agent who sells annuities to individuals must have completed the initial eight hours of training. Any newly licensed agent must complete the initial eight hours of training prior to soliciting individual consumers for annuity sales.

2. How will I know if I am authorized to sell once my training has been completed?
As long as you have completed an eight-hour CDI approved annuity training course, you are authorized to sell annuity products during the current license term. You must complete a four-hour CDI approved annuity training course each renewal period thereafter to be authorized to sell annuity products.

3. Will my license reflect that I am authorized to sell annuities once I complete my training?
No. Your license will not reflect this authorization. However, your continuing education record will verify you completed the required training.

Back to Top

Continuing Education
1. What is the continuing education requirement?
After the initial eight hour training, the life agent must complete the four hour continuing training requirement in the subsequent license term. For instance, if a life agent completed the eight hour training in December 2004 and the life agent's renewal is in February 2005, that life agent will be required to complete the four hour continuing training on or before his or her February 2007 renewal.

2. Is this requirement in addition to the continuing education hours currently required in Section 1749.3 of the California Insurance Code?
No, the training hours are part of, and not in addition to, the continuing education requirement in Section 1749.3 of the California Insurance Code.

3. If I complete my four hours of annuity training after the expiration of my license will I have to pay a penalty fee and will there be a break in my license?
No, failing to complete the required training prior to expiration of your license will not affect your license status, however you will not be authorized to offer or sell annuity products.

Back to Top

Non-Resident Licensees
1. Does this requirement apply to non-residents?
Yes, unless they are representing an insurer that is a direct response provider.

2. What is a direct response provider?
For purposes of this requirement, a "direct response provider" means an insurer that meets each of the following criteria:

a) the insurer does not initiate telephone contact with the insureds or prospective insured;

b) agents of the insurers speak with insureds and prospective insureds only by the telephone, and at the request of the insureds or prospective insureds;

c) agents of the insurer are assigned to speak with insureds or prospective insureds on a random basis, when contacted;

d) agents of the insurer are salaried and do not receive commissions for sales or referrals.

3. I am a licensed non-resident of California and hold a non-resident life agent license, will the eight-hour annuity training count toward my department of insurance's continuing education requirement?
Since the eight-hour annuity course contains California specific information, the course may not be approved in your state. Please check with the education provider who supplied the course to you determine whether that specific course is also approved in your state for continuing education credits.

Back to Top

Exemptions
1. Are there exemptions from this training requirement?
The only exception is if the individual represents an insurer that is a direct response provider. The definition of a Direct response providers is stated in the Non-Resident Licensee section on this Web page.

2. If I am 70 years old and have 30 years of continuous licensing in the State of California, must I still complete this training?
Yes, although you may be exempt from other continuing education requirements, if you are soliciting the sale of annuities you must complete the required training.

Back to Top

Annuity Training List
1. Can an Insurer or Agency obtain a list of their Life Agents who have and have not completed the Eight-Hour and the Four-Hour Annuity Training requirement?
Yes, the Insurer or Agency can download a list of their life agents who have and have not completed the annuity training requirement by following the instruction on this link: Annuity Training Report.

2. How can an Insurer or Agency obtain a list of their life agents in an Adobe Printable Document Format (PDF)?
You will need to follow the instructions noted on the following link: Printable Document Format (.pdf). This report is formatted and pops up using Adobe Acrobat 5.0.5.

3. How can an Insurer or Agency obtain a list of their life agents in an Excel format?
You will need to follow the procedures to create a Comma Separated Values (.csv) document. This link provides you with the procedures to run the report. To open the report in an Excel format, please follow the steps noted below.

1. Open Microsoft Excel.
2. From the Menu Bar select the Data menu option.
3. From the Data drop down menu select Import External Data.
4. From the Import External Data menu select Import Data.
5. In the Select Data Source dialog box that displays documents, select the .csv file created and saved earlier. Click the Open button.
6. In the Original Data Type area of Step 1 of the Text Import Wizard, select Delimited. Click the Next button.
7. On Step 2 of the Wizard, select Comma in the Delimiters area. Click the Next button.
8. In the Data Previewer area of Step 3, navigate using the horizontal scroll bar to the column titled Agent_Lic_NBR, select this column. In the Column Data Format area above select the Text radio button.
9. Click the Finish button.
10. You may now reformat the Excel document to accommodate your needs.

Back to Top

General Licensing Information

• Annuity Training
• Certificate of License Status
• Continuing Education
• Duplicate License
• License Changes
• Licensing Fees
• Long-Term Care
• Nonresident
• Prelicensing Education Certificate of Completion
• Renewal
• Variable Contract Authority

Education Providers

• Instructors
• Course Application
• Class Schedule
• Fees

If you need further assistance, please call the California Department of Insurance's (CDI) Producer Licensing Bureau at (800) 967-9331 or (916) 322-3555, or send an e-mail to Producer Licensing Bureau. Please be sure to include your name, telephone number, license number and e-mail address in all correspondence with the CDI.