California Insurance Code 1749.8 – (a) Every life agent who sells annuities shall satisfactorily …
(a) Every life agent who sells annuities shall satisfactorily complete eight hours of training prior to soliciting individual consumers in order to sell annuities.
(b) Every life agent who sells annuities shall satisfactorily complete four hours of training prior to each license renewal. Completion of the eight-hour annuity training required by subdivision (a) does not satisfy the four-hour annuity training required by this subdivision. For resident licensees, this requirement shall count toward the licensee‘s continuing education requirement, but may still result in completing more than the minimum number of continuing education hours set forth in this section.
Terms Used In California Insurance Code 1749.8
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Commissioner: means the Insurance Commissioner of this State. See California Insurance Code 20
- license: includes a certificate of convenience and a permanent license, and the term "persons who are licensed" includes the holders of any such certificate or the license, but these definitions and the use of those terms in this chapter shall not confer upon a certificate of convenience or any holder thereof any property right in or to the certificate, the certificate being and remaining only a temporary permit, issued as a matter of convenience, allowing the transaction of insurance without a permanent license, but within the limits, and subject to the conditions of the certificate of convenience issued and the laws applicable thereto. See California Insurance Code 1627
- licensee: means an insurer, agent, broker, or any other person who is required to be licensed by the department. See California Insurance Code 38.6
- Resident: means residing in this State, "nonresident" means not residing in this State. See California Insurance Code 30
(c) The training required by this section shall be approved by the commissioner and shall consist of topics related to annuities, and California law, regulations, and requirements related to annuities, prohibited sales practices, the recognition of indicators that a prospective insured may lack the short-term memory or judgment to knowingly purchase an insurance product, and fraudulent and unfair trade practices. Subject matter determined by the commissioner to be primarily intended to promote the sale or marketing of annuities shall not qualify for credit toward the training requirement. Any course or seminar that is disapproved under the provisions of this section shall be presumed invalid for credit toward the training requirement of this section unless it is approved in writing by the commissioner.
(d) The training requirements set forth in this section shall not apply to nonresident agents representing an insurer that is a direct response provider.
For the purposes of this section, “direct response provider” means an insurer that meets each of the following criteria:
(1) The insurer does not initiate telephone contact with insureds or prospective insureds.
(2) Agents of the insurer speak with insureds and prospective insureds only by telephone, and at the request of the insureds or prospective insureds.
(3) Agents of the insurer are assigned to speak with insureds or prospective insureds on a random basis, when contacted.
(4) Agents of the insurer are salaried and do not receive commissions for sales or referrals.
(Amended by Stats. 2013, Ch. 321, Sec. 19. (AB 1391) Effective January 1, 2014.)