How long should a 1035 take

[rats0001]

Doing a 1035 at Oxford. Started on Aug 12, 2024. Am now being told it will take between 15 to 20 business days(could be longer), plus mailing time. I count 20 business days to be Sept 10, 2024.
Doesn't that seem like a long time?
Phone rep said the are being snowed under with 1035's, and didn't know why. I said I know why, paying 2.80% on renewals, when new policies were at 5.15% recently.

 

[Tahoe Ray]

Doing a 1035 at Oxford. Started on Aug 12, 2024. Am now being told it will take between 15 to 20 business days(could be longer), plus mailing time. I count 20 business days to be Sept 10, 2024.
Doesn't that seem like a long time?
Phone rep said the are being snowed under with 1035's, and didn't know why. I said I know why, paying 2.80% on renewals, when new policies were at 5.15% recently.

It's not crazy and it's not unusual right now given rates moving all over the place.

Your accepting carrier will likely honor that 5.15% rate anyway (and it's good that you ratelocked that...rates are going below 5% soon for A rated MYGA paper)

 

[Allen Trent]

It's not crazy and it's not unusual right now given rates moving all over the place.

Your accepting carrier will likely honor that 5.15% rate anyway (and it's good that you ratelocked that...rates are going below 5% soon for A rated MYGA paper)

Is rate lock pretty standard right now if 1035 or Rollover? Seems like some IMO & carrier monthly rate newsletters state rate will be set when final money is received.

 

[Tahoe Ray]

Is rate lock pretty standard right now if 1035 or Rollover? Seems like some IMO & carrier monthly rate newsletters state rate will be set when final money is received.

1035/transfers it's almost always 30-60 days. I don't know of many carriers that don't rate lock.

Cash/checks are a totally different deal.

 

[scagnt83]

Should and could are very different terms in this industry when it comes to carriers releasing funds to another carrier.

 

[genefl]

Doing a 1035 at Oxford. Started on Aug 12, 2024. Am now being told it will take between 15 to 20 business days(could be longer), plus mailing time. I count 20 business days to be Sept 10, 2024.
Doesn't that seem like a long time?
Phone rep said the are being snowed under with 1035's, and didn't know why. I said I know why, paying 2.80% on renewals, when new policies were at 5.15% recently.

Not too usually this day an age.seen worse with NWL 45 business days.

 

[Panda1]

This is not really in my expertise but I did have one probably 14 years ago and I got the feeling that the releasing company wants to hold onto the money as long as they can. Especially if it’s coming up to the end of a quarter.

 

[scagnt83]

Yep. It can also depend on the structure of the carrier. If they use the Career Agency model, the Agency that policy is under can hold up the transfer. Saw one recently on the life side that was 3 months delayed because of the Agency trying to conserve the business.