FAQs - California's New Annuity Training Regulations

What is the new annuity training requirement?

Every life agent who sells annuities shall satisfactorily have completed eight hours of annuity training prior to soliciting annuity sales to individual consumers.

Must the eight-hour requirement be met by classroom only?

No, the State of California allows continuing education providers to deliver the annuity training requirement by correspondence. CalAnnuityCE satisfies the eight-hour requirement using a self-study correspondence format - online or paper-based.

Are there additional annuity training requirements once I have satisfactorily completed the eight-hour requirement?

Yes. Every life agent will be required to complete four hours of annuity training every two years prior to license renewal. This course does not satisfy the four-hour requirement.

Are the new training requirements in addition to my existing continuing education requirements with California?

For resident agents, this requirement is considered to be part of (not in addition to) the continuing education requirements set forth by the Department of Insurance.

Who is required to complete the annuity training requirements?

Every life agent who sells annuities is required to complete the training. This applies to both resident and non-resident agents. Only non-resident agents representing an insurer that is a direct response provider are exempt from the new requirements.

"Direct Response Provider" means an insurer that meets each of the following criteria:

The insurer does not initiate telephone contact with insureds or prospective insureds.
Agents of the insurer speak with insureds and prospective insureds only by telephone, and at the request of the insureds or prospective insureds.
Agents of the insurer are assigned to speak with insureds or prospective insureds on a random basis, when connected.
Agents of the insurer are salaried and do not receive commissions for sales or referrals.

If I sell variable annuities, do the training requirements apply to me?

Yes. Agents who sell Fixed Annuities or Variable Annuities are required to meet the training requirements. Fixed Annuities include, but are not limited to, traditional annuities, bonus annuities, equity-indexed annuities, and single premium immediate annuities.

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