AB811,11,77 (c) Cooperating with the investigation of a complaint.
AB811, s. 24 8Section 24. 628.347 (4) (title) of the statutes is repealed and recreated to read:
AB811,11,99 628.347 (4) (title) Financial Industry Regulatory Authority rules.
AB811, s. 25 10Section 25. 628.347 (4) of the statutes is renumbered 628.347 (4) (a) and
11amended to read:
AB811,11,1812 628.347 (4) (a) Compliance Subject to pars. (b) and (c), sales made in
13compliance
with the National Association of Securities Dealers Conduct Rules
14FINRA requirements pertaining to suitability satisfies and supervision of annuity
15transactions satisfy
the requirements under sub. (2) for the recommendation of
16variable annuities
this section. Nothing in this subsection, however, limits the
17commissioner's ability to enforce this section, including conducting any
18investigation necessary for that enforcement
.
AB811, s. 26 19Section 26. 628.347 (4) (b) of the statutes is created to read:
AB811,11,2020 628.347 (4) (b) For par. (a) to apply, an insurer must do all of the following:
AB811,11,2221 1. Monitor the FINRA member broker-dealer using information collected in
22the normal course of an insurer's business.
AB811,11,2523 2. Provide to the FINRA member broker-dealer information and reports that
24are reasonably appropriate to assist the FINRA member broker-dealer to maintain
25its supervision system.
AB811, s. 27
1Section 27. 628.347 (4) (c) of the statutes is created to read:
AB811,12,42 628.347 (4) (c) This subsection applies to FINRA broker-dealer sales of
3variable annuities and fixed annuities if the suitability and supervision are similar
4to those applied to variable annuity sales.
AB811, s. 28 5Section 28. 628.347 (4m) of the statutes is created to read:
AB811,12,116 628.347 (4m) Insurance intermediary training. (a) An insurance
7intermediary may not solicit the sale of an annuity product unless the insurance
8intermediary has adequate knowledge of the product to recommend the annuity and
9the insurance intermediary is in compliance with the insurer's standards for product
10training. An insurance intermediary may rely on insurer-provided product-specific
11training standards and materials to comply with this paragraph.
AB811,12,1412 (b) 1. a. An insurance intermediary who engages in the sale of annuity products
13shall complete a one-time training course approved by the commissioner and
14provided by an education provider approved by the commissioner.
AB811,12,2115 b. Insurance intermediaries who hold a life insurance line of authority on the
16effective date of this subd. 1. b. .... [LRB inserts date], and who desire to sell annuities
17must complete the requirements of this paragraph within 6 months after the
18effective date of this subd. 1. b. .... [LRB inserts date]. Individuals who obtain a life
19insurance line of authority on or after the effective date of this subd. 1. b. .... [LRB
20inserts date], may not engage in the sale of annuities until they have completed the
21annuity training course required under this paragraph.
AB811,12,2322 2. The minimum length of the training required under this paragraph shall be
23sufficient to qualify for at least 4 continuing education credits, but may be longer.
AB811,12,2524 3. The training required under this paragraph shall include information on all
25of the following topics:
AB811,13,1
1a. The types of annuities and various classifications of annuities.
AB811,13,22 b. Identification of the parties to an annuity.
AB811,13,43 c. How fixed, variable, and indexed annuity contract provisions affect
4consumers.
AB811,13,55 d. The application of income taxation of qualified and non-qualified annuities.
AB811,13,66 e. The primary uses of annuities.
AB811,13,77 f. Appropriate sales practices and replacement and disclosure requirements.
AB811,13,128 4. Providers of annuity training courses intended to comply with this
9paragraph shall cover all of the topics listed under subd. 3. and may not present any
10marketing information or provide training on sales techniques or provide specific
11information about a particular insurer's products. Additional topics may be offered
12in conjunction with and in addition to those listed under subd. 3.
AB811,13,1713 5. A provider of an annuity training course intended to comply with this
14paragraph shall register as a continuing education provider in this state and comply
15with the rules and guidelines applicable to insurance intermediary continuing
16education courses as set forth in rules of the office governing intermediary
17continuing education requirements.
AB811,13,2018 6. Annuity training courses may be conducted and completed by classroom or
19self-study methods in accordance with rules of the office governing intermediary
20continuing education requirements.
AB811,13,2321 7. Providers of annuity training shall comply with the reporting requirements
22and shall issue certificates of completion in accordance with rules of the office
23governing intermediary continuing education requirements.
AB811,14,3
18. Satisfaction of the training requirements of another state that are
2substantially similar to the requirements of this paragraph satisfies the training
3requirements of this paragraph in this state.
AB811,14,104 9. An insurer shall verify that an insurance intermediary has completed the
5annuity training course required under this paragraph before allowing the
6intermediary to sell an annuity product for that insurer. An insurer may satisfy its
7responsibility under this subdivision by obtaining certificates of completion of the
8training course or obtaining reports provided by commissioner-sponsored database
9systems or vendors or from a reasonably reliable commercial database vendor that
10has a reporting arrangement with approved insurance education providers.
AB811, s. 29 11Section 29. 628.347 (5) (intro.) of the statutes is amended to read:
AB811,14,1512 628.347 (5) Remedial Compliance; remedial measures. (intro.) The An insurer
13is responsible for compliance with this section. If a violation occurs, either because
14of the action or inaction of the insurer or its insurance intermediary, the

15commissioner may do any of the following:
AB811, s. 30 16Section 30. 628.347 (5) (d) of the statutes is created to read:
AB811,14,1717 628.347 (5) (d) Impose any appropriate penalties or sanctions.
AB811, s. 31 18Section 31. 628.347 (6) (b) of the statutes is repealed.
AB811, s. 32 19Section 32. 628.347 (6) (c) of the statutes is amended to read:
AB811,14,2420 628.347 (6) (c) The commissioner may promulgate rules related to by rule
21provide for
the reduction or elimination of penalties for violations a penalty under
22par. (a) for a violation
of this section on the basis of prompt if corrective action is taken
23to correct any harm caused to consumers by the violations for the consumer promptly
24after the violation is discovered or the violation is not part of a pattern or practice
.
AB811, s. 33 25Section 33. 628.347 (7) of the statutes is renumbered 628.347 (7) (a).
AB811, s. 34
1Section 34. 628.347 (7) (b) of the statutes is created to read:
AB811,15,42 628.347 (7) (b) Records that are required to be maintained under this section
3may be maintained in paper, photographic, microprocess, magnetic, or electronic
4media or by any process that accurately reproduces the actual document.
AB811, s. 35 5Section 35. 628.347 (8) (intro.) of the statutes is amended to read:
AB811,15,76 628.347 (8) Exemptions. (intro.) This Unless otherwise prescribed by rule, this
7section does not apply to any of the following:
AB811, s. 36 8Section 36. Effective dates. This act takes effect on the first day of the 12th
9month beginning after publication, except as follows:
AB811,15,1110 (1) Rule reducing or eliminating penalty. The treatment of section 628.347
11(6) (b) and (c) of the statutes takes effect on the day after publication.
AB811,15,1212 (End)
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