The California Insurance Department issued a bulletin (“Bulletin”) on December 6, 2011 regarding annuity training requirements under California Insurance Code Sections 1749.8 and 10509.9 15(a).

California Insurance Code Section 1749.8 requires every insurance producer selling annuities to complete eight hours of training prior to soliciting annuity business.  Section 1749.8 also requires producers to complete four hours of training every two years prior to license renewal.  The California legislature recently amended Section 1749.8 to clarify that the four hour training requirement must be completed prior to each license renewal.

In addition to, and separate from, the eight and four hour training requirements specified in Section 1749.8, the California legislature added Section 10509.9 15(a) to the Insurance Code, which, effective January 1, 2012, prohibits an producer from soliciting any annuity product unless such producer has adequate product knowledge and complies with the insurer’s product training standards.  The Bulletin specifies that insurance producers selling annuity products must complete the insurer’s product-specific training prior to January 1, 2012.  Producers who fail to complete this training will be barred from selling those annuity products until the product-specific training is completed.

Click here for a copy of the Bulletin.