- 11,280
That sucks. I just got a series 5.9 from seminar. What a waste!
Unmitigated Commission Chargebacks
- Thread starter Viverrid
- Start date
- 14,808
I can think of a lot of things I want to do with my life - selling investment tools to seniors with nothing more than an insurance license ranks around 195th.
It's not that you can't give a fantastic annuity presentation - it's that seniors can get what's called "selective amnesia" when it comes to accessing that money and funny thing....they now don't remember your entire presentation.
Heck...I'd be in there with camcorder - taping the entire presentation.
It's not that you can't give a fantastic annuity presentation - it's that seniors can get what's called "selective amnesia" when it comes to accessing that money and funny thing....they now don't remember your entire presentation.
Heck...I'd be in there with camcorder - taping the entire presentation.
Well...an EIA is not an investment and should not be sold as such. It is a savings vehicle and should be sold as such. It does offer risk protection, since there is no investment or market risk. So if you sell it as an investment, there is no license that will protect you from charges that you gave inappropriate investment advice.
To insinuate that someone with a Series 6 could sell it as an investment is wrong, and if they did sell it as an investment they would be even more guilty than an insurance only licensed agent who did the same.
I have all those licenses, but they don't allow me to sell EIA's as investments. Perhaps as an alternative to investment, but it is thin ice.
- 868
the new sec rulings will eventually classify EIA's as securities (investments) due to following reason the fact that they are based upon and index of securites (SP, Dow, Nas, Eurostoxx, etc) and the fact that an abundance of agents have presented them as an alternative to stocks, mf, bonds and variable annuities.
Overuse by unethical agents the same reason my CSA is now worthless
Overuse by unethical agents the same reason my CSA is now worthless
Midland is one of my favorite EIA companies. That said, they are very sensitive to doing the right thing for the client, and putting the client in the appropriate product. I am not saying you didn't.
You have 2 different unrelated clients who were convinced by 2 different securities licensed investment advisors to write letters complaining about the annuity being unsuitable? Did Midland agree they were unsuitable and state the reasons? Was it all the money the clients had? Did you leave adequate emergency money in place? Have you stayed in contact with the clients prior to the securities licensed agents coming in and causing them to move their money?
When you sell an EIA it is only the beginning of the process. The client needs continual re-education and help managing the account. If you are not seeing these clients at least once a year you are asking for problems.
The companies should make commissions payable over the term of the annuity. That would eliminate a lot of the problems. If you sell a 14 year annuity, it should take 13 years to get your commission in full. That alone would clean up the industry.
You have 2 different unrelated clients who were convinced by 2 different securities licensed investment advisors to write letters complaining about the annuity being unsuitable? Did Midland agree they were unsuitable and state the reasons? Was it all the money the clients had? Did you leave adequate emergency money in place? Have you stayed in contact with the clients prior to the securities licensed agents coming in and causing them to move their money?
When you sell an EIA it is only the beginning of the process. The client needs continual re-education and help managing the account. If you are not seeing these clients at least once a year you are asking for problems.
The companies should make commissions payable over the term of the annuity. That would eliminate a lot of the problems. If you sell a 14 year annuity, it should take 13 years to get your commission in full. That alone would clean up the industry.
- 868
yes that would work except no one would sell the product
avg annuity is 50000 avg comp8%
avg comm 4000 divide by 14 is less than 300.00 comm per year not worth most agents time to sell as annuities due require much greater due dilligence and research up front than say health or life
avg annuity is 50000 avg comp8%
avg comm 4000 divide by 14 is less than 300.00 comm per year not worth most agents time to sell as annuities due require much greater due dilligence and research up front than say health or life
- 868
annuities are an insurance product with zero risk to principal plus upside potential with the potential to systematically be drawn down or annuitized for alifetime or period certain income stream
so end todays lesson
and they are inappropriate in most cases if full walkaaway is not permitted.
so end todays lesson
and they are inappropriate in most cases if full walkaaway is not permitted.
- 958
Do you mean full walk-away at any time, or full walk-away over a period of time? I agree if walk-away is not permitted at all, then it is inappropriate.
Excellent point.
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