How Has DOL Affected Your Annuity Business?

[RyanCO]

I don't write a ton of annuities, but it does look like the industry has taken a hit with the DOL. A few questions, any input would be helpful:

1. I saw one company's DOL form, and it looks like all commissions have to be disclosed. Surely that could be a turn-off for many clients. Is that for all EIA business, or just ERISA/IRA qualified money?

2. If it's for all business, can you write annuities with a trail, like 1%? And do most annuity companies offer that?

3. In what specific ways has the DOL affected your business?

Thanks!

 

[SanDiego619]

I don't write a ton of annuities, but it does look like the industry has taken a hit with the DOL. A few questions, any input would be helpful:

1. I saw one company's DOL form, and it looks like all commissions have to be disclosed. Surely that could be a turn-off for many clients. Is that for all EIA business, or just ERISA/IRA qualified money?

2. If it's for all business, can you write annuities with a trail, like 1%? And do most annuity companies offer that?

3. In what specific ways has the DOL affected your business?

Thanks!

1. The 84/24 disclosure is only required for Qualified money.

2. Yes you can definitely take a trail option and that would be the amount disclosed. Which really you can turn around and pitch that as a benefit to the client. Depending on the language in the disclosure it most likely talks about how the commission is paid by the insurance company not the client. So you can discuss how you get paid the same amount (or probably less) than an investment advisor but the client isn't the one paying you.

3. I'm with an FMO. Been a slower year because our agents have been building AUM for recurring revenue. The disclosure has not been a hiccup

 

[RyanCO]

1. The 84/24 disclosure is only required for Qualified money.

2. Yes you can definitely take a trail option and that would be the amount disclosed. Which really you can turn around and pitch that as a benefit to the client. Depending on the language in the disclosure it most likely talks about how the commission is paid by the insurance company not the client. So you can discuss how you get paid the same amount (or probably less) than an investment advisor but the client isn't the one paying you.

3. I'm with an FMO. Been a slower year because our agents have been building AUM for recurring revenue. The disclosure has not been a hiccup

Good stuff, thank you.

 

[eersfan]

I don't write a ton of annuities, but it does look like the industry has taken a hit with the DOL. A few questions, any input would be helpful:

1. I saw one company's DOL form, and it looks like all commissions have to be disclosed. Surely that could be a turn-off for many clients. Is that for all EIA business, or just ERISA/IRA qualified money?

2. If it's for all business, can you write annuities with a trail, like 1%? And do most annuity companies offer that?

3. In what specific ways has the DOL affected your business?

Thanks!

Quite a bit more paperwork when writing a VA. My commission is fully disclosed, and no one has complained. It's not like putting a client in an A share of a mutual fund where the sales charge comes off the top.

I can write annuities with 4 different pay options. So yes, you can write ones with a trail...based upon what's approved at your BD.