Entering into a Loan Agreement with A Annuity Client in Texas

[pfg1]

I can't imagine asking to borrow money from a client for anything.

Maybe its just me, but ANYWHERE else than from a client would seem like a better idea. That is a ticking time bomb from the get go.

 

[txagentcccc]

Situation was this

I sold client some annuities for some bright (dumb) idea i entered into a loan agreement for 30k with my client and another agent payable in 3 years and with interest. Clients granddaughter complained and loan has been repaid just wondering if anyone knew of a certain law or statute that related to this in Texas

I understand pretty dumb in my part just seeing what specifically laws in Texas say about this.

No securities license just life and health agent in Texas

 

[txagentcccc]

Money came from bank account no insurance products were cashed in or surrendered

Need to respond to TDI not sure if the best defense is stating on loan

1. Stating there is no outstanding loan at this time or

2. Stating that there was a loan and details of it and that it has been repaid.

Client has 800k in annuities and about 1.3 net worth. No will so annuities were purchased for that reason.

Last annuity was 150k for 7 years at a 4 percent fixed rate compared to bank savings account of .2 percent and she had about 325k in checkings and savings

 

[BADTROUT]

Money came from bank account no insurance products were cashed in or surrendered

Need to respond to TDI not sure if the best defense is stating on loan

1. Stating there is no outstanding loan at this time or

2. Stating that there was a loan and details of it and that it has been repaid.

Client has 800k in annuities and about 1.3 net worth. No will so annuities were purchased for that reason.

Last annuity was 150k for 7 years at a 4 percent fixed rate compared to bank savings account of .2 percent and she had about 325k in checkings and savings

My best non-attorney advice would simply lay the facts out and timeline exactly how they happened. I would explain your intentions, both in regards to the annuities and in the loan, and let the chips fall as they may. I think that details of the loan likely will not have an impact of whether it was appropriate or not so I think your question is likely moot.

My experience with TDI and other states DOI's is they are generally reasonable. If nothing nefarious was intended you may still be admonished, but its always going to be best practices to fully comply with all the facts as they may be.

 

[VolAgent]

Why are you so eager to risk your license and career to save a few hundred dollars?

I had a situation that made me a bit too nervous once, I gladly paid my attorney for some peace of mind in how to handle it.

You are unsure how to answer this and are hoping we can give you the sudden insight. We can't.

It never ceases to amaze me the people who want to get "paid for their knowledge", but refuse to pay anyone else for theirs.

 

[txagentcccc]

I hired attorney just wanted to see if anyone had knowledge on this issue and responding to TDI

Thanks everyone