Utah has amended certain provisions of its licensure requirements including the requirement that producers be licensed as a variable contract producer in order to recommend the purchase or termination of a variable contract [Utah Rule R590-133-1+]. For purposes of this rule, "variable contracts" includes variable life insurance policies and variable annuity contracts. The compliance date for the revised requirement is February 9, 2011.
We have verified with the department that all producers, including licensed-only producers, must hold a variable contract license when these producers are identified on an application that indicates a variable contract is being replaced. In order to comply with the Utah rule,effective February 9, 2011, new business applications received, that were signed in the state of Utah, will be monitored for "variable contract" replacement.
Further, Utah producers are advised that it is the responsibility of the producer to ensure that any recommendations to terminate a variable contract are made in compliance with Utah licensing rules.