American General and 1035 exchange

eersfan

Super Genius
Completed a life app for a client on July 10, 2017 where two AG permanent policies were going to be 1035'd into the new contract. It took AG almost 6 months to send the funds. First, they said they couldn't find the paperwork. Resubmitted it. Next, they said they couldn't verify the SS# of my client, although the two AG policies had been in-force for over 18 years. Submitted a W-9. Funds arrived on 12-27-2017.

Anyone else ever have an issue with AG?
 
My first year in the Business Prudential took me for a ride submitted 1035 paperwork twice they said it was lost. Third time they got it but said it needed to be a qualified funds form I argued with them then just did it with the clien...They also received the forms the fourth time but told me they couldn' t accept qualified funds paperwork as it was a nonqualified annuity and needed a 1035...They also couldn't accept the 1035 paperwork they had as it was too old even though it wasn't too old when they "mistakenly" told me they needed qualified funds. So on the fifth attempt I sent both 1035 and qualified funds paperwork and a draft letter singed by the client to the DOI with a copy of all their rejections. Five times was the charm never had an experience like that again.
 
I think that unfortunately, for some companies that is one of the ways of "conserving". They get the client frustrated enough they just say the heck with it, leave it there. EJ did their best one time to deter one of my clients, using a similar technique as you posted. Whatever we sent, they said it was wrong - though we sent what they asked for.

Intentional or not, its bad practice. I've had it a couple times... but most often the 1035 happens in a reasonable timeframe.
 
I think that unfortunately, for some companies that is one of the ways of "conserving". They get the client frustrated enough they just say the heck with it, leave it there. EJ did their best one time to deter one of my clients, using a similar technique as you posted. Whatever we sent, they said it was wrong - though we sent what they asked for.

Intentional or not, its bad practice. I've had it a couple times... but most often the 1035 happens in a reasonable timeframe.

I think, in this case, AG was stalling due to the amount of money involved. I helped a client's sister with an AG case a couple of years ago where an AG agent did a rollover of qualified funds into a single-premium UL contract. How it made it past their compliance department is something I'll never know. The regional manager from AG came to their house when I was there. First thing he did was ask me if I was an attorney. After giving him my business card, he agreed to "allow" me to sit in on the meeting. He said AG should never have allowed this and personally "walked" the paperwork through to get my client their funds returned plus interest.
 
The big rock company has tried every trick in the book on 1035’s for me. One time they denied one because there was a child term rider on the original policy and not on the new one. Turned out the lady didn’t know about that and her daughter died in an accident at age 17. Then they did a quick Opps, and sent the 1035 funds but never paid the child claim.
 
If it is a substantial amount of cash value, I have seen 1035 paperwork stall or disappear. If it is a Variable Universal Life, with the clients permission and them on the line, you can call and make them believe you are about to go to FINRA, that works. You can complain to state Division of Insurance, but they wont do anything. The best way I know is to before you 1035, become an agent of record and then you can follow up much easier. It does not work for every carrier, also you cant get appointed with someone just to make it easy for you to 1035 your clients out. You also have to sell their product.
 
If it is a substantial amount of cash value, I have seen 1035 paperwork stall or disappear. If it is a Variable Universal Life, with the clients permission and them on the line, you can call and make them believe you are about to go to FINRA, that works. You can complain to state Division of Insurance, but they wont do anything. The best way I know is to before you 1035, become an agent of record and then you can follow up much easier. It does not work for every carrier, also you cant get appointed with someone just to make it easy for you to 1035 your clients out. You also have to sell their product.
This was just under 15k being moved. I was almost to the point of having my client on the phone with them a couple of weeks ago.
 
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