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- Notification of Virginia Adopting Rules Governing Suitability in Annuity Transactions
The Virginia Bureau of Insurance (“Bureau”) 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 www.scc.virginia.gov/case by selecting “Docket Search,”
“Search Cases” and entering the Case Number INS-2016-00267.
The new rules go into effect April 1, 2017.
Revisions include a new definition for suitability information, additional requirements for
providing information to consumers regarding the annuity, and a five year record keeping
retention requirement. The revised Rules also require agents to complete a one-time
Virginia approved four-credit continuing education course on annuity products. Agents
licensed to sell annuities must complete the required training on or before January 1, 2018.
Agents who obtain a license to sell annuities on or after January 1, 2018, must complete
the required training prior to engaging in the sale of annuities in Virginia. Insurers are
responsible for verifying that an agent selling an annuity product in Virginia on their behalf,
on or after January 1, 2018, have completed the required training. (See 14 VAC 5-45-45 B
10 of the Virginia Administrative Code.)
The Bureau has determined that resident agents may meet this training requirement by completing an approved training course – one that has either been approved in Virginia or in another state since that state’s adoption of the 2010 or 2015 NAIC Suitability in Annuity Transactions Model Regulation – prior to the relevant deadline. The Bureau acknowledges that this is a change from its prior interpretation of these provisions as requiring that licensed resident agents complete a Virginia-approved training course between April 1, 2017 and January 1, 2018. Non-residents are exempt if they have already
completed "substantially similar" training in their home state.
On April 1, 2017 visit www.sircon.com/virginia
to review a list of approved providers,
courses and course offerings.
- Insurance Agencies Designated Licensed Producers
Effective July 1, 2016, insurance agencies are required to maintain a Designated Licensed Producer (DLP) responsible for the agency's compliance with insurance laws and regulations. The DLP must be an employee, officer, or director of the agency. Regarding Limited Liability Companies and Partnerships, the Bureau will accept members and partners respectively as the DLP. With respect to a business entity holding certain types of a limited lines license, the DLP is not required to be an employee, officer, or director of the vendor or lessor. Business entities are required within 30 calendar days to report the removal of the DLP and the name of the new DLP. This makes DLP requirements uniform among various lines of insurance.
Review and make updates to the business entity DLP (Supporting Agent) via Sircon’s Compliance Express service by visiting www.sircon.com/virginia
and selecting Maintain Designated Licensed Producer located on the menu on the left side of the page. A nominal Sircon service fee may apply. See Step-by-step instructions.
- Notification of Virginia adopting the revised Rules Governing Unfair Claims Settlement Practices (14 VAC 5-400-10 et seq.) (Chapter 400) NEW!
The order adopting the revisions to the Rules may be accessed at www.scc.virginia.gov/case by clicking on "Docket Search," "Search Cases" and entering Case Number INS-2016-00265.
Revised Chapter 400 is effective January 1, 2018.
The amendments to Chapter 400 conform the Rules to the National Association of Insurance Commissioners' Unfair Claims Settlement Practices Act (MDL-900), Unfair Property/Casualty Claims Settlement Practices Model Regulation (MDL-902), and Unfair Life, Accident and Health Claims Settlement Practices Model Regulation (MDL-903). These amendments clarify that Chapter 400 applies to all insurance policies issued in the Commonwealth of Virginia, except policies of workers' compensation insurance, title insurance, and fidelity and surety insurance, including those policies that are issued by health maintenance organizations, dental maintenance organizations, dental provider organizations, health service plans, accident and sickness insurers, and dental and optometric service plans. In addition, the amendments set forth claims settlement standards that are specific to automobile insurance, property policies, accident and sickness insurance, life insurance and annuities.
- ACA Rate & Form Filing Information
- Certified Reinsurer Applications – The Commission is posting notices of applications
for certified reinsurers in the Commonwealth of Virginia and inviting members of
the public to respond to the application. Information regarding comments on applications
of certified reinsurers is available at www.scc.virginia.gov/cons/rein
November 1, 2017 3:25 PM