Commission Restrictions on Replacements

[JMO Fan]

I heard that some states regulate commissions on sales on replacement annuities. They supposedly prohibit first-year comp, only allow renewal commissions. Has anybody heard of this?

 

[scagnt83]

I heard that some states regulate commissions on sales on replacement annuities. They supposedly prohibit first-year comp, only allow renewal commissions. Has anybody heard of this?

Not on a state level.

But many carriers will not give comp on internal replacements.

 

[Norwayguy]

Not on a state level.

But many carriers will not give comp on internal replacements.

Please see my roll out to savings account thread....Internal replacements my butt.

 

[scagnt83]

Please see my roll out to savings account thread....Internal replacements my butt.

I feel your pain. But that was not at a state level.

Also, in your case, the contract to be replaced would have lost money.
I understand and agree with your point of view on that specific situation.
But refusing business over a loss in the original contract is nothing new.

But your situation shows that this industry (and country) needs a huge dose of common sense!

 

[Norwayguy]

I feel your pain. But that was not at a state level.

Also, in your case, the contract to be replaced would have lost money.
I understand and agree with your point of view on that specific situation.
But refusing business over a loss in the original contract is nothing new.

But your situation shows that this industry (and country) needs a huge dose of common sense!

I look back on when I first sold annuities 1 page app 1 page client letter of understanding. Then I look back at when I entered securities the B/D app was 1 page. Fast forward to today and the applications might be 10 pages, the letter of understanding might be 4 pages, suitability forms, special forms for replacement beyond the replacement form.

I am more likely today to have a client not read what I put before them. How does this protect the consumer. It really doesn't its protecting the carrier and makes regulators think they are doing something (they are, killing more trees). Sent in a rollover yesterday when all done including transfer forms and letters of instruction I have the client send along to help with suitability we are pushing 46 pages and this is to move 2 accounts totalling less than 11 thousand.

 

[VolAgent]

Peter, I've had much the same thought. If you put a stack of papers in front of someone, they stop reading and start signing.

It is crazy to think anyone is going to read 46 pages unless you are an attorney billing by the hour.

 

[Norwayguy]

Peter, I've had much the same thought. If you put a stack of papers in front of someone, they stop reading and start signing.

It is crazy to think anyone is going to read 46 pages unless you are an attorney billing by the hour.

I always love the replacement form. I'm filling it out and hand it to the client and say I need two things from you. I need you to sign here and unless you really want me to read to you out loud the back of the form initial here. Every now and then some one wonders why I would need to read it out loud. I say cause the government doesn't think you can read. From there on in they look at all the stuff designed to protect them as really protecting idiots.