Poll: Biggest Concerns with Final DOL Rule

[scagnt83]

And its interesting that you bring up the Surgeon anallogy. Because MDs are required to act under the medical equivalent of a Fiduciary Standard. They are required by law to put a patients best interest first and foremost. They are required to charge fees that are "reasonable" and "justifiable" and in line with the market in general... just like the new DOL Regs require. They also have to be able to justify to an ethics board or other regulators that they did indeed put the patients interest first and foremost and did not allow any conflicts of interest affect patient care.

 

[DHK]

Yeah... and people pick and choose their doctors based solely on how much they charge? Those that have money want and are willing to pay for competence.

In regards to medical care, I want the procedure that works. Cost isn't a factor compared to results - aside that I want my insurance to cover it.

 

[scagnt83]

Everyone sends you a bill just because a surgen send you a bill doesn't mean you know how much is actually going in his pocket and a I have seen how contractors bill if wood cost $500 it shows on the bill $1000 and so forth means nothing

This means nothing, However there has been a coordinated effort by the media and others to create an anger towards the so called rich and and insurance industry as a whole. And just because an agent is not rich be perceived that way. It will do more harm than good in some cases,

Although I do believe in many cases it will not matter, This still does not make it right

In most other industries there is no such disclosures. Yes a client has a right to know I get a comshion but how much is not a concerns. If the plans are researched properly the better plan should win

I know When I sell a plan I do not consider which has higher % as long as there is a %. this doesn't mean that some time the highest commission isn't the better plan

In other industries you are not making recommendations on a persons life savings.

And just because you dont consider comp %s doesnt mean others dont. A few bad apples can ruin it for everyone. IMOs promote the "annuity of the week" based on comp alone all the time. I could probably find 5 in my spam folder right now that are promoting the comp of the product but nothing else. They would not keep sending crap like that if agents didnt reply to the emails.


At the end of the day if you really are basing your recommendation on the best possible product, then you should easily be able to justify and explain the comp to the client.


I think these regs will weed out the weaker products within the industry. Carriers will consolidate products and compete more on the merits & benefits of the products.

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Yeah... and people pick and choose their doctors based solely on how much they charge? Those that have money want and are willing to pay for competence.

In regards to medical care, I want the procedure that works. Cost isn't a factor compared to results - aside that I want my insurance to cover it.

In my experience people do not choose annuities based on comp alone either when it is disclosed.

Do your clients choose Term based on price alone? Or DI or WL?

I think you are worrying about this way too much and not giving your clients enough credit for being able to understand that it is fair compensation for the work performed once put in the proper context.

 

[vic120]

In other industries you are not making recommendations on a persons life savings.

Is Insurance the only industry that affects people's lives?

I am not going to argue with you already made my point

 

[scagnt83]

Annuities specifically affect a person's life savings. It is totally different than a contractor or even a doctor. It is also totally different than any other type of insurance product that's out there as well.

New York has had commissioned disclosure regulations for a few years now and it had no adverse effect on index annuity sales. I've never heard any tales of agents in New York losing out on sales because of that regulation... Maybe I am wrong. I'm not sure why the rest of the country would be any different.

 

[walthamny]

DHK

I never find myself in a situation asking for referrals in the middle market. If you are asking for referrals, in my opinion something is not quite right in approach, fact finding or delivery, or something else. I used to follow NYL teachings and then I had to ask for referrals. It was not very good way to make living.

Also, lets look at the alternative for the middle class guy. If he does not get the annuity from you chances are he will spend the money, invest with the EJ advisor in some pink sheet stocks, call Suze Orman and invest in a vanguard target fund and move to cash the first time it drops 5% or invest in an indexed annuity with you.

 

[donamese]

I compare it to real estate, the commissions are disclosed there. I think real estate agents still get a good number of referrals despite their commissions being disclosed. The nice thing with annuities is they are priced into the product and do not necessarily come out of the proceeds directly like a real estate agents commissions. Whether you get 4% or 8% on Annuity XYZ, the interest rate and features are the same.

 

[Cornelius]

So if someone is not directly contracted with a carrier what parts of the commission is shown? The full commission or just what the agent will earn?

 

[Family Man]

I am a private entrepreneur providing a service to the local general public. I would rather NOT have a portion of my income published to every prospect requesting a quote. Secondly, I'm sure most states already require ethics classes which emphasize clients' best interest...meaning the federal DOL is duplicating efforts. Third, since when did the federal government stop intruding once they begin? A 1k page document that can be summarized that we need to keep clients' best interest a priority is asinine and redundant. It won't stop with this rule.

 

[DHK]

An ethics CE "class" is a far different standard than enforcing a fiduciary duty.