FIA delivery doc disclosure

[URDRWHO]

Last month I delivered an FIA. Aside from the insurance company delivery docs I also made my own disclosure document.

Here is my delivery DOC

Insured name address etc.

Name of Insurance company

Signature and date

Bonus amount

Signature and date

Surrender charge

Signature and date

Participation Rate

Signature and date

Cap

Signature and date

All of the above were explained to you and you understand the features

Signature and date

End of DOC

Of course the above was already explained and signatures required with the application. I thought that a re-visit with signatures at delivery point would be good.

Not sure how many more times or how much more someone can do to verify that disclosure was done.

I appreciated any ideas to add to the above DOC.

I've discussed before of my risk management of clients such as time stamped phone calls, deliveries, etc. Last week I had a bookkeeper call and say that one of the employee's said they did not receive their insurance card.

I popped up the Client Contact, opened up the meetings screen and recited the exact time and date of delivery. I use my PDA to time stamp when I am out on an appointment. The bookkeeper was amazed that I had delivery records down to the time of day. As amazing as she was at my records, she was also amazed at how clear the employee's mind became when she relayed the information. Yep.....he had his card.

 

[Mr. Bill]

You might want to add information on what happens if the annuitant dies while still in the surrender period.

It may be easier to simply have a copy of the prospectus and have them initial off key paragraphs/sections, and keep that one for your file.

You're absolutely right following the CYA Strategy!!!

 

[patch36]

Unless you are selling Allianz, most of the FIA's have an immediate death benefit. I won't sell anything without an immediate death benefit. FIA's don't have a prospectus, and if they did you aren't supposed to write in them in I remember correctly. VA's have a prospectus.

Great idea, and a great way to review with the client the key points of the annuity. I also like the idea to add the death benefit provision. It is important they understand it.

 

[Winter_123]

Unless you are selling Allianz, most of the FIA's have an immediate death benefit. I won't sell anything without an immediate death benefit. FIA's don't have a prospectus, and if they did you aren't supposed to write in them in I remember correctly. VA's have a prospectus.

Great idea, and a great way to review with the client the key points of the annuity. I also like the idea to add the death benefit provision. It is important they understand it.

I don't know. I can agree in theory that the additional disclosures and disclaimers are good but in practice it is much more dicey. As part of the boilerplate language in the application the agent is usually agreeing that he did not use any other sales material as part of the sales and application process. The additional or re-iterated disclosures and disclaimers fall into the category however well intended.
Don't get me wrong. I personally and professionally don't have any problem with it but it is always little dicey when you use something that compliance departments would nix if they had full knowledge. If you are submitting that additional paperwork to the carrier along with the app, I suppose that is one thing. If you are just including it in your file then that is another because the carrier is on the hook for whatever you represent or disclaim to the client and they are entitled to visibility to it.

Certainly in the securities world they would go batshit if you did that and it would be a major issue. Doesnt matter whether the representations and disclaimers are valid or not. The view from the compliance world is that they dont know that unless they see it to review and then when they review it they will generall nix it because they believe that they have already put together a compliant sales app process.

Just offering up a different view.



Winter

 

[patch36]

...and valid points Winter. The securities business would frown on this disclosure, but I have been to meetings sponsored by annuity carriers and they did not discourage the use of any additional documentation, including something similar to the one this thread is discussing.

I personally am not using any additional forms other than a fact finder.

 

[URDRWHO]

Yes they would and is on the list of why I left that insane world.

I think, I would need to read but the language you speak of is in the sale. The sale is completed once delivery is completed. They sign off on company docs and it is done.

At that point I could have them sign anything. The company has been signed off and are out of it. At that point it is the same as it would be if a year from now I have them sign another....do you remember doc.

Certainly in the securities world they would go batshit if you did that and it would be a major issue. Doesnt matter whether the representations and disclaimers are valid or not. The view from the compliance world is that they dont know that unless they see it to review and then when they review it they will generall nix it because they believe that they have already put together a compliant sales app process.

Just offering up a different view.



Winter