(a)

1. (1) No agent shall be eligible to sell or offer for sale a variable annuity contract unless, prior to making any solicitation or sale of such a contract, he or she also be licensed as a variable annuity agent.
2. (2) Any agent who participates only in the sale or offering for sale of variable contracts that are not registered under the federal Securities Act of 1933 need not be licensed as a variable annuity agent.

(c)

1. (1) The licensing as a variable annuity agent of any agent complying with subsection (b) of this section shall not become effective until such agent shall have satisfactorily passed both a written securities examination and variable annuity examination.
2. (2) The variable annuity examination shall be composed of at least fifteen (15) questions, but not more than fifty (50) questions, concerning the history, purpose, regulation, and sale of variable annuities.

(d)

1. (1) The variable annuity examination will be given in such places and at such times as the Insurance Commissioner shall from time to time designate.
2. (2) Upon application for license as a variable annuity agent, the applicant shall be notified of the date of the next examination.

(e) Any applicant for license as a variable annuity agent shall be required to present evidence that he or she:

1. (1) Has previously passed a securities examination as defined in 23 CAR § 81-101(2);
2. (2) Is currently registered with the United States Securities and Exchange Commission as a broker-dealer; or
3. (3) Is currently associated with a broker-dealer and has met qualification requirements with respect to such association.

(f) Every applicant applying for license as a variable annuity agent shall:

1. (1) Satisfactorily complete the variable annuity examination required by subsection (c) of this section with a grade of at least seventy percent (70%); or
2. (2) Present evidence of successful completion of a variable annuity examination given under the supervision of an insurance department of any state or territory of the United States.

(h)

1. (1) Every application for a license as a variable annuity agent shall be accompanied by an examination fee of ten dollars ($10.00).
2. (2) A fee of ten dollars ($10.00) will be charged for each reexamination administered to an applicant.

(k)

1. (1)

   1. (A) Results of the examination administered pursuant to subsection (c) of this section will be reported by the State Insurance Department to the applicant's company.
   2. (B) In addition, examination results will be reported by the State Insurance Department to any other state insurance department requesting confirmation of the examination grade, either upon request of such department or upon request of the applicant or his or her company.
2. (2) A charge of fifty cents (50¢) shall be made for the second and each subsequent report of examination results.

(m) Any person licensed in this state as a variable annuity agent shall immediately report to the commissioner:

1. (1) Any suspension or revocation of his or her variable annuity agent's license or life insurance agent's license in any other state or territory of the United States;
2. (2) The imposition of any disciplinary sanction (including suspension or expulsion from membership, suspension or revocation of or denial of registration) imposed upon him or her by any national securities exchange, national securities association, or any federal, state, or territorial agency with jurisdiction over securities or variable annuities; and

3. (3) Any judgment or injunction entered against him or her on the basis of conduct deemed to have involved:

   1. (A) Fraud;
   2. (B) Deceit;
   3. (C) Misrepresentation; or
   4. (D) Violation of any insurance or securities law or regulation.

(n)

1. (1) The commissioner may reject any application or suspend or revoke or refuse to renew any variable annuity agent's license upon any ground that would bar such applicant or such agent from being licensed to sell life insurance contracts in this state.
2. (2) The rules governing any proceeding relating to the suspension or revocation of a life insurance agent's license shall also govern any proceeding for suspension or revocation of a variable annuity agent's license.