HEA 1015 Summary

• Amends definition of "parent" in limited purpose subsidiary statutes to refer to entities that wholly own a limited purpose subsidiary rather than an organizing domestic life insurance company.

• Removes requirement for limited purpose subsidiaries to maintain risk-based capital equal to 2.5 times the life risk-based capital formula amount and eliminates separate notice and reporting requirements for material transactions.

• Modifies variable annuity producer licensing requirements to eliminate the "variable life and variable annuity products" qualification category and instead require producers to hold either a life qualification or variable annuity qualification with appropriate FINRA registration (Series 6 or Series 7).

• Changes long-term care insurance commission requirements to mandate annual commissions for at least six years (previously five years) with amounts in years after the first year determined based on first-year premiums rather than being equal to second-year amounts.

• Revises insurance producer prelicensing course requirements for annuity product training from variable life and variable annuity focus to general annuity training with specific topics on annuity types, taxation, and sales practices.