State RegulationsPA specificDifficulty 1/5
Under Pennsylvania's annuity suitability law, what training must a producer complete before selling annuities?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Act 48 of 2018, Pennsylvania's annuity suitability measure (40 P.S. § 627-1 et seq.), requires a one-time annuity training course of 4 credits before a producer sells annuities. The requirement reaches every producer holding annuity authority — even those who do not actively sell annuities — and reciprocal credit is available for substantially similar training completed in another state. The training requirement is enforced through the Pennsylvania Insurance Department's producer rules.
Why the other options are wrong
- A) Annuities are regulated products; the training requirement exists precisely because annuity sales carry suitability duties.
- B) Training is a precondition to selling, not a sanction imposed after an audit finds a problem.
- D) Long-term care training is a separate requirement; the annuity training obligation applies to producers with annuity authority regardless of other lines.
Memory hook
Annuity authority? Take the 4 credits first — one time, before the first sale.