Revisions to the Rules Governing Suitability in Annuity Transactions (14 VAC 5-45 of the Virginia Administrative Code)- OBSOLETE

P.O. BOX 1157 RICHMOND, VIRGINIA 23218 TELEPHONE: (804) 371-9741 TDD/VOICE: (804) 371-9206 www.scc.virginia.gov/boi JACQUELINE K. CUNNINGHAM COMMISSIONER OF INSURANCE STATE CORPORATION COMMISSION BUREAU OF INSURANCE April 4, 2017 Administrative Letter 2017-01 TO: All Companies Licensed to Sell Annuities or Variable Annuities under Title 38.2 of the Code of Virginia RE: Revisions to the Rules Governing Suitability in Annuity Transactions (14 VAC 5-45 of the Virginia Administrative Code) The Virginia Bureau of Insurance has revised the Rules Governing Suitability in Annuity Transactions, incorporating provisions contained in the National Association of Insurance Commissioners’ Suitability in Annuity Transactions Model Regulation. The revised Rules can be accessed at: http://law.lis.virginia.gov/admincode/title14/agency5/chapter45/ Among other changes, the revised Rules require agents to complete a one-time four credit continuing education (C.E.) course on annuity products. The deadline for compliance with this C.E. requirement is January 1, 2018, for agents currently holding a life insurance line of authority and who desire to sell annuities in Virginia. Agents who obtain a life insurance line of authority on or after January 1, 2018, must complete the C.E. requirement prior to engaging in the sale of annuities in Virginia. Virginia resident agents are required to complete a Virginia approved one- time four credit C.E. course designated for annuity suitability on or after April 1, 2017. Therefore, courses taken by resident agents prior to April 1, 2017, will not be counted towards compliance. Non-resident agents are exempt if they have already completed a "substantially similar" course in their home state. Insurers are responsible for verifying that any agent selling annuity products in Virginia on their behalf has completed the four credit C.E. course on or after April 1, 2017. Therefore, courses taken by resident agents prior to April 1, 2017, will not be counted towards compliance. Non-resident agents are exempt if they have already completed a "substantially similar" course in their home state. Insurers are responsible for verifying that any agent selling annuity products in Virginia on their behalf has completed the four credit C.E. course. (See 14 VAC 5-45-45 B 10 of the Virginia Administrative Code.) Questions concerning this administrative letter may be addressed to: Life and Health Division, Bureau of Insurance State Corporation Commission P.O. Box 1157 Richmond, VA 23218 (804) 371-9741 BureauofInsurance@scc.virginia.gov Sincerely, Jacqueline K. Cunningham Commissioner of Insurance OBSOLETE 9-1-21