SB572: Bill Text

SB572,12,4 628.347 (4) (c) This subsection applies to FINRA broker-dealer sales of variable annuities and fixed annuities if the suitability and supervision are similar to those applied to variable annuity sales.

SB572, s. 28 Section 28. 628.347 (4m) of the statutes is created to read:

SB572,12,11 628.347 (4m) Insurance intermediary training. (a) An insurance intermediary may not solicit the sale of an annuity product unless the insurance intermediary has adequate knowledge of the product to recommend the annuity and the insurance intermediary is in compliance with the insurer's standards for product training. An insurance intermediary may rely on insurer-provided product-specific training standards and materials to comply with this paragraph.

SB572,12,14 (b) 1. a. An insurance intermediary who engages in the sale of annuity products shall complete a one-time training course approved by the commissioner and provided by an education provider approved by the commissioner.

SB572,12,21 b. Insurance intermediaries who hold a life insurance line of authority on the effective date of this subd. 1. b. .... [LRB inserts date], and who desire to sell annuities must complete the requirements of this paragraph within 6 months after the effective date of this subd. 1. b. .... [LRB inserts date]. Individuals who obtain a life insurance line of authority on or after the effective date of this subd. 1. b. .... [LRB inserts date], may not engage in the sale of annuities until they have completed the annuity training course required under this paragraph.

SB572,12,23 2. The minimum length of the training required under this paragraph shall be sufficient to qualify for at least 4 continuing education credits, but may be longer.

SB572,12,25 3. The training required under this paragraph shall include information on all of the following topics:

SB572,13,1 a. The types of annuities and various classifications of annuities.

SB572,13,2 b. Identification of the parties to an annuity.

SB572,13,4 c. How fixed, variable, and indexed annuity contract provisions affect consumers.

SB572,13,5 d. The application of income taxation of qualified and non-qualified annuities.

SB572,13,6 e. The primary uses of annuities.

SB572,13,7 f. Appropriate sales practices and replacement and disclosure requirements.

SB572,13,12 4. Providers of annuity training courses intended to comply with this paragraph shall cover all of the topics listed under subd. 3. and may not present any marketing information or provide training on sales techniques or provide specific information about a particular insurer's products. Additional topics may be offered in conjunction with and in addition to those listed under subd. 3.

SB572,13,17 5. A provider of an annuity training course intended to comply with this paragraph shall register as a continuing education provider in this state and comply with the rules and guidelines applicable to insurance intermediary continuing education courses as set forth in rules of the office governing intermediary continuing education requirements.

SB572,13,20 6. Annuity training courses may be conducted and completed by classroom or self-study methods in accordance with rules of the office governing intermediary continuing education requirements.

SB572,13,23 7. Providers of annuity training shall comply with the reporting requirements and shall issue certificates of completion in accordance with rules of the office governing intermediary continuing education requirements.

SB572,14,3 8. Satisfaction of the training requirements of another state that are substantially similar to the requirements of this paragraph satisfies the training requirements of this paragraph in this state.

SB572,14,10 9. An insurer shall verify that an insurance intermediary has completed the annuity training course required under this paragraph before allowing the intermediary to sell an annuity product for that insurer. An insurer may satisfy its responsibility under this subdivision by obtaining certificates of completion of the training course or obtaining reports provided by commissioner-sponsored database systems or vendors or from a reasonably reliable commercial database vendor that has a reporting arrangement with approved insurance education providers.

SB572, s. 29 Section 29. 628.347 (5) (intro.) of the statutes is amended to read:

SB572,14,15 628.347 (5) Remedial Compliance; remedial measures. (intro.) The An insurer is responsible for compliance with this section. If a violation occurs, either because of the action or inaction of the insurer or its insurance intermediary, the commissioner may do any of the following:

SB572, s. 30 Section 30. 628.347 (5) (d) of the statutes is created to read:

SB572,14,17 628.347 (5) (d) Impose any appropriate penalties or sanctions.

SB572, s. 31 Section 31. 628.347 (6) (b) of the statutes is repealed.

SB572, s. 32 Section 32. 628.347 (6) (c) of the statutes is amended to read:

SB572,14,24 628.347 (6) (c) The commissioner may promulgate rules related to by rule provide for the reduction or elimination of penalties for violations a penalty under par. (a) for a violation of this section on the basis of prompt if corrective action is taken to correct any harm caused to consumers by the violations for the consumer promptly after the violation is discovered or the violation is not part of a pattern or practice.

SB572, s. 33 Section 33. 628.347 (7) of the statutes is renumbered 628.347 (7) (a).

SB572, s. 34 Section 34. 628.347 (7) (b) of the statutes is created to read:

SB572,15,4 628.347 (7) (b) Records that are required to be maintained under this section may be maintained in paper, photographic, microprocess, magnetic, or electronic media or by any process that accurately reproduces the actual document.

SB572, s. 35 Section 35. 628.347 (8) (intro.) of the statutes is amended to read:

SB572,15,7 628.347 (8) Exemptions. (intro.) This Unless otherwise prescribed by rule, this section does not apply to any of the following:

SB572, s. 36 Section 36. Effective dates. This act takes effect on the first day of the 12th month beginning after publication, except as follows:

SB572,15,11 (1) Rule reducing or eliminating penalty. The treatment of section 628.347 (6) (b) and (c) of the statutes takes effect on the day after publication.

SB572,15,12 (End)