Legal Issue

[NPCOACH]

If the client didn't want the annuity and it was purchased without his knowledge -it is not suitable. Suitability is not limited to income and assets - it also has to be suitable to the clients wishes and investment philosophy.

That said - how come the client didn't send it back right away if he didn't want it?

Lastly - if he has had it a year, there may be a very large gain in the policy - can he surrender it and come out ahead?

We all need more info to comment intelligently.

 

[Franz Kafka]

Talking about agents making blunders without client knowledge .. I happened to come across an Axa/Eq contract last year (a portfolio review of sorts) .. Contribution was over seven figures (a retired surgeon) .. Client insisted that it had 6% GMIB in it .. I couldn't find the clause anywhere in the contract so suggested we meet with the agent and also suggested that he take a voice recorder with him (which he used with the agent's consent) .. as the AXA agent shuffled through the original app, I saw her face start turning white then black .. turned out she forgot to check one box and as a consequence the contract had no GMIB in it and it was down over 40% from the initial contribution .. in the end the client got his GMIB rider reinstated and the agent had to come up with the majority of the difference out of her own pocket .. which was a lot of friggin money ..

 

[jmhopkins40]

Talking about agents making blunders without client knowledge .. I happened to come across an Axa/Eq contract last year (a portfolio review of sorts) .. Contribution was over seven figures (a retired surgeon) .. Client insisted that it had 6% GMIB in it .. I couldn't find the clause anywhere in the contract so suggested we meet with the agent and also suggested that he take a voice recorder with him (which he used with the agent's consent) .. as the AXA agent shuffled through the original app, I saw her face start turning white then black .. turned out she forgot to check one box and as a consequence the contract had no GMIB in it and it was down over 40% from the initial contribution .. in the end the client got his GMIB rider reinstated and the agent had to come up with the majority of the difference out of her own pocket .. which was a lot of friggin money ..

WOW... The agent paid the client money back....you sure about that statement????

 

[Franz Kafka]

WOW... The agent paid the client money back....you sure about that statement????

Yes and that's why I told him to record the conversation because there was nothing written anywhere to prove that she actually meant to sell the GMIB. With the recording in place, the carrier would have settled with the client anyways. All I heard from the client was "she took care of it with her own money" without all the gory details.

 

[HarryRenard]

Lastly - if he has had it a year, there may be a very large gain in the policy - can he surrender it and come out ahead?

Under what circumstances do you think that could ever be possible?

Not to mention if he did somehow find himself ahead do you really think we would be having this discussion.

 

[NPCOACH]

Under what circumstances do you think that could ever be possible?

Not to mention if he did somehow find himself ahead do you really think we would be having this discussion.

Renard, unless you have been living under a rock this past year, you would know that the market has been up dramatically (about 30% over the last 12 months and 50% over the last 8 months). Depending on the type of annuity, the gain could be sizable, even taking into consideration surrender charges.

We might be having this discussion under the circumstances because the original post was about whether or not the broker could do this sort of transaction. And since people like you did not know it was even possible to have a large gain on an annuity in one year, we might also be having this discussion.

Nice try though. If you have something to contribute - do so. If you want to insult other posters, at least demonstrate basic knowledge when you do so.

 

[HarryRenard]

Renard, unless you have been living under a rock this past year, you would know that the market has been up dramatically (about 30% over the last 12 months and 50% over the last 8 months). Depending on the type of annuity, the gain could be sizable, even taking into consideration surrender charges.

We might be having this discussion under the circumstances because the original post was about whether or not the broker could do this sort of transaction. And since people like you did not know it was even possible to have a large gain on an annuity in one year, we might also be having this discussion.

Nice try though. If you have something to contribute - do so. If you want to insult other posters, at least demonstrate basic knowledge when you do so.

Actually I will stick by my statement, THE fact is if their were large gains that would off set his surrender charges, and fee's and expenses we wouldnt be discussing "free look" options because at that point he would just surrender and move on.
And actually since I do have a good understanding on annuities is why I said that.
I actually sell them and since I have real world experience with them is why I asked.

 

[NMFNMDRT]

WOW... The agent paid the client money back....you sure about that statement????

That is a scary thought. I guess it was either that or termination...