Annuity Training Requirements for Producers

Individual producers engaged in the sale of annuity products must 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.

An annuity training requirement has been in place since 2012. The Louisiana Department of Insurance (LDI) has amended Regulation 89 Suitability in Annuity Transactions to implement the best interest of consumer enhancements in accordance with the current version of NAIC Suitability in Annuity Transactions Model Regulation. These amendments require the annuity training to include appropriate sales practices, replacement, and disclosure requirements for the best interest standard of conduct and are effective September 20, 2024.

Producers selling annuities as of September 20, 2024, must complete annuity training based on the new best standards curriculum. Producers who had completed annuity suitability training prior to September 20, 2024, can comply with the new training requirement by:

• Completing a new four-hour training by March 20, 2025.

Or

• Completing a one-hour course on appropriate sales practices, replacement, and disclosure requirements by March 20, 2025.

If a producer has already completed annuity training to meet the best interest standards for any state, that producer has satisfied the best interest training requirement for Louisiana. It does not matter when the producer completed the training provided it meets the best interest standards.

Producers newly licensed for Life authority on or after September 20, 2024, who desire to sell annuity products must complete the new best interest standard training standards prior to selling annuity products.

Insurers are required 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 best interest 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 standard of conduct, 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.