This will likely generate a "Yes, we expected it." response.
And that's a good thing because this is very
IMPORTANT !
At a recent meeting with Key Office Personnel from various marketing organizations, we heard that all carriers have been reinforcing the need to fully complete an application. And, paying close attention to the Replacement Questions is particularly important.
So this will be no shock to you...
Effective June 1 we will suspend an application if it is not properly completed, this includes any incomplete replacement paperwork.
Because all paperwork is imaged, we will not physically return
any paperwork. We will contact the marketing organization for
them to secure paperwork that meets the "in good order" criteria
outlined in the Replacement Bulletin issued in October 2007
(click to view). The Bulletin also outlines how to submit
revised paperwork. If the case is a "cash with app," new
paperwork must be received within 10 business days or we will
have to return the funds.
And, paperwork on a 1035 case must be in good order before funds
can be requested from the ceding company.
Unfortunately this
might cause a rate lock to become void. So please,
please, reinforce to agents and back offices the need to
properly complete applications; no one ever wants to have to
tell a client they made a mistake that cost their client a rate
lock.
The most common error
is neglecting to submit the Replacement Form when when it
is required by the state. If a client has another
annuity or a life insurance policy, and EVEN IF they are NOT
REPLACING that contract/policy, if the new
annuity will be issued in
Alabama, Arizona, Colorado, Hawaii, Iowa, Kentucky, Louisiana,
Maine, Maryland, Mississippi, Montana, New Hampshire, New
Jersey, New Mexico, North Carolina, Ohio, Oregon, Rhode Island,
Texas, Utah, Vermont, Virginia, West Virginia, the agent
MUST SUBMIT a fully completed Replacement Form to the carrier,
per NAIC regulation.
State insurance departments take this very
seriously and so do we.
Thank you for your continued support in this very important step
in the process of helping Americans build a strong retirement.
Click to
read or download the previously issued bulletin
Annuity Service Center
888.438.6933
