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Annuity Training Requirements for Producers

La R.S. 22:1576, recently enacted by Act 612 of the 2012 legislative session, requires individual producers engaged in the sale of annuity products to complete a one-time four (4) hour training course. This requirement is separate and distinct from the continuing education requirements for a licensee and applies to both resident and nonresident producers. The requirement applies to all types of annuity products.

Producers who are already licensed for a life insurance line of authority as of August 15, 2012 must comply with the training requirement no later than January 1, 2013 in order to continue to sell annuities on or after January 1, 2013. A producer who becomes newly licensed for a life insurance line of authority on or after August 15, 2012 must comply with the training requirement before selling an annuity product. A producer who satisfied a similar annuity training requirement for another state will be considered to have satisfied Louisiana’s requirement.

It is the responsibility of the insurer to verify that an insurance producer has completed an approved annuity training course before allowing the producer to sell an annuity product for that insurer.

Any course intended to satisfy the annuity training must be an approved continuing education course offered by an approved continuing education provider and can be classroom or self-study. In order to satisfy the annuity training requirement, a course must qualify for at least four (4) hours of continuing education credit and must include the following topics:

  • The types of annuities and various classifications of annuities.
  • Identification of the parties to an annuity.
  • A description of how fixed, variable, and indexed annuity contract provisions affect consumers.
  • The application of income taxation of qualified and nonqualified annuities.
  • The primary use of annuities.
  • Appropriate sales practices, replacement, and disclosure requirements.

The course may not include any marketing information or provide training on sales techniques or specific information about a particular insurer's products.

Although compliance with the annuity training requirement will not be tracked by the Department, courses which meet the annuity training requirements will be designated with annuities as the subject type to assist producers and insurers in identifying courses which satisfy this training requirement.

Additionally, insurance companies and producers with a life line of authority are reminded that in addition to the four (4) hour course, 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 meet this requirement.