Section 628.347, Wis. Stat., pertaining to the suitability of
annuity transactions has been amended. New requirements take effect
May 1, 2011, and include the requirement that licensed life
insurance agents who sell annuities complete a one-time, four-credit
general annuity training course approved by the Office of the
Commissioner of Insurance (OCI). Existing life agents on May 1,
2011, who sell any annuities must complete four hours of approved
annuity training within six months, by November 1, 2011. Newly
licensed life agents on or after May 1, 2011, have to complete the
training before they can sell annuities.
The training is required
of both resident and nonresident agents, and is a one-time
requirement. No follow-up training is mandated. Agents who satisfy
the training requirements of another state that are similar to
Wisconsin's law will be deemed compliant for Wisconsin's
requirement. It is up to each insurer to verify that their appointed
agents have completed the required training.
All providers and courses must be reviewed and approved prior to
credit being awarded. Providers not already approved in Wisconsin
need to contact Pearson VUE at (800) 274-4743 to obtain the
appropriate information on how to apply. Application materials are
also available at their Web site at
Pearson VUE.
The approved
Annuity Training Outline (opens in new window) is available at
our Web site. Please note that provider courses do not have to
follow our outline verbatim. Courses that follow the high-level
outline can have some flexibility in the subcategories as long as
the major areas are discussed.
Frequently Asked Questions
Why were changes including the training requirement made
to s. 628.347, Wis. Stat.?
The changes to s. 628.347, Wis. Stat., coincide with the
revisions made to the Suitability in Annuity Transactions Model
Regulation that was originally adopted by the National Association
of Insurance Commissioners (NAIC) in 2006 and later amended in March
2010.
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What kind of training is required?
Agents who sell annuities are required to complete a one-time
annuity training course of sufficient length to qualify for at least
four continuing education credits. Course content must include the
types of annuities, identification of the parties to an annuity, how
fixed, variable and indexed annuity contract provisions affect
consumers, the application of income taxation of qualified and
non-qualified annuities, the primary uses of annuities, as well as
appropriate sales practices and replacement and disclosure
requirements. Training courses may not present any marketing
information or provide training on sales techniques or provide
specific information about a particular insurer's products.
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When do agents have to complete the training requirement?
Existing agents who sell annuities have until November 1, 2011,
to complete the training while agents first obtaining a life license
on or after May 1, 2011, will need to complete the required training
before they can begin selling annuities.
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Can the training be approved for
CE credit?
Completion of a Wisconsin approved annuity training course can
also count towards a resident agent's continuing education credits
requirement.
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How can agents find approved annuity training courses?
A listing of approved annuity training courses can be found by
following the links on SBS's Wisconsin Producer Portal at:
http://www.statebasedsystems.com/
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Do all licensed agents have to complete annuity training?
Only those life insurance producers who intend to sell annuities
are required to complete the annuity training.
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Does the training requirement apply to nonresident
agents?
Yes. It applies to any agent selling annuity products in
Wisconsin.
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Does the training requirement apply to producers who sell
only group annuities?
The training requirement applies to agents who sell either fixed
or variable annuities that are individually solicited, whether the
product is classified as an individual or group annuity.
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Do agents need to submit proof of completion of training
to the OCI?
No. Insurers are responsible for verifying that their appointed
agents have received the required training before allowing agents to
sell their annuity products.
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If an agent completes annuity training in another state
will it satisfy the Wisconsin requirement?
Completion of an annuity training course approved in another
state that is substantially similar to Wisconsin's requirements can
satisfy the annuity training requirement.
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Does s. 628.347, Wis. Stat., require agents to have any
additional annuity training?
Yes. Insurers are required to provide product-specific training
and training materials that explain all material features of their
annuity products to their agents, and to establish standards for
agent product training. Agents are required to be in compliance with
an individual insurer's product-specific training standards when
selling the insurer's annuity products.
