DOL Rules and Impact on Agent

[steadyled]

Has anyone heard from a fixed insurance carrier what changes they will be instituting for commissions or product design when the DOL rules are instituted. Looking for early signs.

 

[DHK]

Haven't heard anything from carriers specifically.

I've heard from IMOs, trade publications, and other "talking heads" in the industry... but I doubt we'll hear anything from carriers until after the rule is finalized.

 

[walthamny]

It would be several months before you hear anything from carriers. They will change their product line and apply for approval which is not a fast process. In any case, the rule will go into effect next year, it will just get announced this week.

 

[BYSFG]

I havent really paid attn to it much since its still in the works. Things are going to change but its going to take time. Given how long it has been since then til now.

Now, Im just curious how its going to affect us. Sounds like its more targeted to annuities?

 

[DHK]

You're right. It's not targeting life insurance... unless you're recommending that someone stop funding their qualified plan and fund a life policy instead. That recommendation WOULD (most likely) fall under the DOL ruling because it would affect a qualified retirement account (401k, 403b, IRA, Roth IRA, etc).

We should hear more about it tomorrow morning.

 

[steadyled]

Thanks all. I will share anything I hear but it sounds like everyone id in the same boat I am

 

[walthamny]

So I read the summary of the rule on wealthmanagement.com. First Dave Ramsey is safe. Any statement on tv, radio does not mean fiduciary. Now they will allow non traded Reit's and options. VA's too if they are in the clients best interest. Client can sign the Best Interest contract at the closing, not at the beginning. Full start date pushed to January 1, 2018. I could not find anything on fixed index annuities.

 

[scagnt83]

So I read the summary of the rule on wealthmanagement.com. First Dave Ramsey is safe. Any statement on tv, radio does not mean fiduciary. Now they will allow non traded Reit's and options. VA's too if they are in the clients best interest. Client can sign the Best Interest contract at the closing, not at the beginning. Full start date pushed to January 1, 2018. I could not find anything on fixed index annuities.

BICE only applies to Securities. Fixed Rate Annuities are addressed as a revision to PTE 84-24. (correction, only fixed rate annuities are covered, IAs and VAs fall under BICE)

I have not read the exact language yet, but info released by the DOL this morning states that:

in addition, the final amendment to PTE 84-24 provides a streamlined exemption for recommendations of "fixed rate annuity contracts"

All I can find from the DOL are fact sheets and summaries.
http://www.dol.gov/ebsa/pdf/conflict-of-interest-chart.pdf
http://www.dol.gov/ebsa/newsroom/fs-conflict-of-interest.html


And Dave Ramsey is ok as long as he does not give specific recommendations... he can educate, but not recommend or steer business towards any particular company or advisor.

I am going to repost all of this in the annuity section since this has noting to do with life insurance sales at all.

 

[BYSFG]

You're right. It's not targeting life insurance... unless you're recommending that someone stop funding their qualified plan and fund a life policy instead. That recommendation WOULD (most likely) fall under the DOL ruling because it would affect a qualified retirement account (401k, 403b, IRA, Roth IRA, etc).

We should hear more about it tomorrow morning.

I see, makes sense then if you put it that way.
Love/hate relationship with indirect correlation.

Time for me to get to reading.

 

[SamIam]

It does effect life agents if you are a comparing a IUL for example to a over funded 401K. A lot of my clients have stopped over funding their 401k and putting it into Min death max funded IUL. I think those days are over.