The Connecticut Insurance Department issued a bulletin on December 19, 2011 (the “Bulletin”), explaining the training requirements mandated by Sections 38a-432a-1 to 38a-432a-8 of the Regulations of Connecticut State Agencies (the “Regulation”) for insurance producers who sell annuity products.  The Regulation goes into effect on February 18, 2012, and implements the National Association of Insurance Commissioners Suitability in Annuity Transactions Model Regulation in Connecticut.  The Bulletin is organized in a question and answer format, and is limited to addressing the general four-credit annuity training course for producers required by Section 38a-432a-8 of the Regulation; it does not address the product-specific training requirements specified by the Regulation.

The Bulletin, among other things:

  1. Mandates that a currently licensed life producer selling annuity products must complete a one-time, four-credit training course provided by a Connecticut-approved continuing education provider within six months of the effective date of the Regulation;
  2. Mandates that a producer who obtains a life insurance license after February 18, 2012 complete the annuity training course before selling annuities;
  3. Provides that the training requirements apply to residents and non-residents, and that satisfaction of another state’s requirements by a non-resident will satisfy Connecticut’s training requirements if such other state’s requirements are substantially similar to those contained in the Regulation;
  4. Allows training courses to be conducted and completed by classroom or self study methods;
  5. Requires that producers keep a certificate of completion of the training course; and
  6. Specifies that the annuity training course must include information on annuity types and classifications, identification of parties to an annuity, how fixed, variable and indexed annuity contract provisions affect consumers, tax issues, the primary use of annuities, and sales practices, and requirements for replacement and disclosure.

Click here for a copy of the Bulletin.