Annuities Charge Backs how Do They Work?

Aug 24, 2015

  1. kansas11
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    kansas11 New Member

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    I just found out that one of my clients sent their annuity back in the first year and now the marketing company in Kansas is having a law firm say that I have a judgement against me for over $15,000. They have been very rude and this is the first time I have heard about it.

    What can they can they do?

    What happens if I don't pay it?

    Need to know in Kansas.

    I am out of the insurance business now.
     
    kansas11, Aug 24, 2015
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  2. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    Do you still have a copy of your insurance contract to represent the insurance company?

    One of my contracts states this for chargebacks on annuity sales:
    So... read your contract.

    If you don't pay it, then the insurance company is within their legal right to sue you to recover the commission. This can result in a judgment (reported to credit bureaus) and a vector-one report (an 'insurance' credit bureau). Depending on your state laws, they can garnish other wages to recover this obligation.
     
    DHK, Aug 24, 2015
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  3. Gulfman
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    Gulfman Guru

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    Whoa....did i read that right?

    1rst year of clients death (withing the sign up period), you have to return 100%?
    2nd year of clients death (withing the sign up period), you have to return 50%?

    ----IS THIS CORRECT?
     
    Gulfman, Sep 2, 2015
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  4. Tahoe Ray
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    Tahoe Ray Guru

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    A lot of annuity contracts have that language...
     
  5. bill3173
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    bill3173 Guru

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    Do you know of any that don't charge back 100% due to death in first year?
     
  6. Tahoe Ray
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    Tahoe Ray Guru

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    F&G used to not up until this year. To my knowledge, every one that I write with any regularity does.
     
  7. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    The ANICO Strategy Indexed Annuity 7 & 10 do NOT charge back in the first year due to death. However, the rest of ANICO's annuities do.
     
    DHK, Sep 2, 2015
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  8. Tahoe Ray
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    Tahoe Ray Guru

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    Good call...now that they're in NY, they're going to get a lot more attention on my end.
     
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