Bill Text: MI HB6114 | 2019-2020 | 100th Legislature | Introduced
Bill Title: Insurance: other; suitability in annuity transaction model act; create. Amends secs. 4159 & 4160 of 1956 PA 218 (MCL 500.4159 & 500.4160). TIE BAR WITH: HB 6112'20, HB 6113'20, HB 6115'20
Spectrum: Moderate Partisan Bill (Republican 5-1)
Status: (Introduced - Dead) 2020-12-02 - Referred To Second Reading [HB6114 Detail]
Download: Michigan-2019-HB6114-Introduced.html
HOUSE BILL NO. 6114
August 17, 2020, Introduced by Reps. Markkanen,
Rendon, Eisen, Wozniak, Paquette and Brenda Carter and referred to the
Committee on Insurance.
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
by amending sections 4159 and 4160 (MCL 500.4159 and 500.4160), as added by 2012 PA 544.
the people of the state of michigan enact:
Sec. 4159. A producer shall not dissuade, or attempt
to dissuade, a consumer from any of the following:
(a) Truthfully responding
to an insurer's request for confirmation of suitability the consumer profile information.
(b) Filing a complaint.
(c) Cooperating with the
investigation of a complaint.
Sec. 4160. (1) A producer shall not solicit the sale
of an annuity unless the producer has adequate knowledge of the product to
recommend the annuity and the producer is in compliance with the insurer's
standards for product training. A producer may rely on insurer-provided
product-specific training standards and materials to comply with this
subsection.
(2) A producer who
engages in the sale of annuities shall complete a 1-time 4-credit training course
approved by the commissioner director and provided by an insurance
producer program of study registered under chapter 12. Insurance producers who
hold a life insurance line of authority on the effective date of the amendatory act that added this section June 1, 2013 and who desire to sell
annuities shall complete the requirements of this subsection within 6 months after the effective
date of the amendatory act that added this section. by December 1, 2013. Individuals who
obtain a life insurance line of authority on or after the effective date of the amendatory act that added this section May 31, 2013 shall not engage in the sale
of annuities until the annuity training course required under this subsection
has been completed.
(3) The minimum length of
the training required under subsection (2) shall must be
not less than 4 hours, as defined in section 1204c, and may be longer.
(4) The training required
under subsection (2) shall must include information on all of the
following:
(a) The types of
annuities and various classifications of annuities.
(b) Identification of the
parties to an annuity.
(c) How fixed, variable,
and indexed annuity contract provisions affect consumers.
(d) The income taxation
of qualified and nonqualified annuities.
(e) The primary uses of
annuities.
(f) Appropriate standard of conduct, sales practices, and replacement and disclosure
requirements.
(5) Registered insurance
producer programs of study shall must cover all topics under subsection
(4) and shall must 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 the topics under subsection (4).
(6) A provider of an
annuity training course intended to comply with this section shall register
with the commissioner director as a continuing education
provider in this state and comply with any requirements of the commissioner director applicable to insurance producer
continuing education.
(7)
A producer who has completed an annuity training course approved by the director
before the effective date of the 2020 amendatory act that amended this section shall,
within 6 months after the effective date of the 2020 amendatory act that
amended this section, complete either of the following:
(a)
A new 4-credit training course approved by the director after the effective
date of the 2020 amendatory act that amended this section.
(b)
An additional 1-time 1-credit training course approved by the director and
provided by the department-approved education provider on appropriate sales
practices, replacement, and disclosure requirements under this chapter.
(8)
(7) Annuity training courses may be conducted and
completed by classroom or self–study methods in accordance with requirements of
the commissioner.director.
(9)
(8) Providers of annuity training shall comply with any
reporting requirements imposed by the commissioner director and shall issue certificates of completion
in accordance with any requirements of the commissioner.director.
(10)
(9) The satisfaction of the training requirements of
another state that the commissioner director determines to be substantially
similar to this section satisfies the training requirements of this section.
(11)
The satisfaction of the components of the training requirements of any course
or courses with components substantially similar to this section satisfies the
training requirements of this section.
(12)
(10) An insurer shall verify that an insurance producer has
completed the annuity training course required under this section before
allowing the producer to sell an annuity for that insurer. An insurer may
satisfy its responsibility under this section by obtaining certificates of
completion of the training course or obtaining reports provided by commissioner-sponsored director-sponsored database systems or
vendors or from a reasonably reliable commercial database vendor that has a
reporting arrangement with a registered insurance producer program of study.
Enacting section 1. This amendatory act takes effect 6
months after the date it is enacted into law.
Enacting section
2. This amendatory act does not take effect unless all of the following bills
of the 100th legislature are enacted into law:
(a) Senate Bill
No.____ or House Bill No. 6112 (request no. 05748'20).
(b) Senate Bill
No.____ or House Bill No. 6113 (request no. 07415'20).
(c) Senate Bill
No.____ or House Bill No. 6115 (request no. 07417'20).
