Annuities Charge Backs how Do They Work?

[kansas11]

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.

 

[DHK]

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:

Commission chargeback is 100% on the following products if during the first policy year a policy terminates due to a death claim or full policy surrender for (listed products). Commission chargeback of 50% applies to the second policy year for (listed product) death claim or full policy surrender. Commission chargeback is 100% in first year for full surrender for (listed product) (no chargebacks on death in the first contract year).

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.

 

[Gulfman]

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.

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?

 

[Tahoe Ray]

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?

A lot of annuity contracts have that language...

 

[bill3173]

A lot of annuity contracts have that language...

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

 

[Tahoe Ray]

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

F&G used to not up until this year. To my knowledge, every one that I write with any regularity does.

 

[DHK]

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.

 

[Tahoe Ray]

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.

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