Under California Insurance Code Section 1749.8, a life agent who sells annuities must:
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Section 1749.8(a) requires every life agent who sells annuities to complete eight hours of commissioner-approved annuity training prior to soliciting individual consumers in order to sell annuities. Section 1749.8(b) requires an additional four hours of training prior to each license renewal, and it expressly provides that completion of the initial eight-hour training does not satisfy the four-hour renewal requirement. For resident licensees, the training counts toward the continuing education requirement, although it may result in completing more than the minimum hours. The approved training covers annuities, California law and requirements, prohibited sales practices, and indicators that a prospective insured may lack the judgment to knowingly purchase an annuity.
Why the other options are wrong
- A) This reverses the statutory figures. The initial training required before soliciting consumers is eight hours, and the renewal training is four hours, not the other way around. This choice misstates what the statute actually requires, so it must be eliminated from consideration.
- B) The four-hour renewal training is mandatory prior to each license renewal, so the eight-hour initial training is not a one-time career requirement that is never repeated. This option reflects a different rule and does not match the law that governs the transaction.
- D) Selling annuities as a life agent requires the Section 1749.8 training. A securities license does not substitute for the annuity training required by California law. Accordingly, this plausible-sounding answer is one that examiners expect candidates to eliminate.
Memory hook
Annuity training: 8 before the first sale, 4 before each renewal. Eight to open, four to renew.