Following the close of the June 1, 2020, acquisition by Fidelity National Financial, F&G is pleased to report financial strength ratings upgrades for its primary operating subsidiaries from S&P Global Ratings, Moody’s Investors Service and Fitch Ratings. Already a significant fixed indexed annuity carrier as a top 10 provider (top 3 in the IMO channel), these upgrades for F&G are a testament to the benefit of Fidelity National Financial’s ownership and will help power F&G’s future growth.
The New York State Department of Financial Services Regulation 187 requires producers and insurers to implement a process that ensures they are acting in the consumer’s best interest when recommending life insurance policies issued in New York. This regulation goes into effect on February 1, 2020, and includes many new guidelines and training requirements. If you write life insurance in New York, you must complete all required training prior to soliciting and submitting any new business on or after February 1, 2020. We encourage you to complete your training as soon as possible to avoid any unnecessary delays in the processing of your life insurance applications. | FAQ | Training
EquiTrust Life has increased the premium bonus on their MarketPower Bonus Index Annuity to 12.00%. This increase comes with no reduction in commissions, currently as high as 8.50% (varies by age and state). Act now as this special premium bonus increase is subject to end at any time. | more
After all the dust from the last-minute legal wrangling settled, the ruling by the 5th Circuit Federal Court of Appeals vacating the Department of Labor Fiduciary Rule (the Rule) finally took effect on May 7th, 2018. The Rule, and all of its associated prohibited transactions, including the Transition Best Interest Contract Exemption, are removed from the list of Federal regulations and no longer apply. | more
Annuities can be tricky assets to pass on because they receive no step-up in cost basis at death. However, Lincoln National’s i4LIFE Indexed Advantage can provide unique legacy planning strategies with the option for beneficiaries to elect first-in, first-out (FIFO) taxation. i4LIFE is an optional feature available for an additional cost exclusively with Lincoln fixed indexed annuities. | more
We are pleased to inform you the Fifth Circuit Court of Appeals decided to vacate the Department of Labor’s Fiduciary Rule. A number of procedural matters must still occur before the decision is final. The Department of Justice has 45 days to request a rehearing by the Fifth Circuit. If a rehearing is not requested or is denied, the Fifth Circuit will issue a mandate in early May making its decision fully effective. The Department of Justice also has 90 days to appeal the decision to the Supreme Court. Until this all gets sorted out, please continue to use PTE 84-24 disclosure paperwork for your life and annuity transactions involving qualified money.
Sample PTE 84-24 Disclosure
For the month of March, earn a $500 application bonus for each EquiTrust fixed annuity sale of $50,000 or more of premium. There is no limit to the number of $500 application bonuses you can earn, but bonuses will be limited to one per individual client. Qualifying fixed annuity applications submitted in March of 2018 that are issued with premium by April 30, 2018, are eligible for the $500 application bonus. | more
The Department of Labor (DOL) recently announced that the more onerous provisions of the Fiduciary Rule, originally scheduled to take effect January 1, 2018, have been delayed until June 30, 2019. The delay does not “roll back” any elements of the existing regulation. As a result, policies and procedures that were instituted in June of this year remain necessary, and in effect. Over the coming months, we expect that the DOL will continue to study whether the rule will have a negative impact on the retirement security of main street Americans, and whether the rule should undergo further changes. Until then, please continue to use PTE 84-24 disclosure paperwork for your life and annuity transactions involving qualified money.
Sample PTE 84-24 Disclosure
The Office of Management and Budget (OMB) recently approved an 18-month delay for the more onerous provisions of the Department of Labor (DOL) Fiduciary Rule. The DOL proposed amendments to three exemptions, which were all approved by OMB. The delay covers the best-interest contract exemption, Prohibited Transaction Exemption 84-24 (PTE 84-24) and class exemption for principal transactions in certain assets between investment advice fiduciaries and employee benefit plans and IRAs. While we are still waiting for guidance as how to best proceed, nothing happens until the DOL finalizes the delay. We are expecting this in the coming weeks. Until then, please continue to use PTE 84-24 disclosure paperwork for your life and annuity transactions involving qualified money.
Sample PTE 84-24 Disclosure
The Department of Labor Fiduciary Rule (the Rule) went into effect on June 9, 2017. The Rule, by law, requires a higher standard of care for advice given on qualified retirement assets. The full requirements will go into effect on January 1, 2018, barring further regulatory or legislative changes.
As of June 9th, those who give advice and/or make a recommendation regarding assets in retirement accounts and expect to be compensated based on the advice/recommendation will be held to the Impartial Conduct Standards, which has three requirements:
- Advice is in the best interest of the customer
- Compensation is reasonable
- Statements about investment transactions, compensation & conflicts of interest are not misleading
During this initial phase-in through the end of the year, the Prohibited Transaction Exemption (PTE) 84-24 can be used to sell traditional fixed annuities, fixed indexed annuities and life insurance involving qualified retirement assets. Under current law, transactions on or after January 1, 2018, will require additional scrutiny and only traditional fixed annuities and life insurance can be sold using PTE 84-24. Fixed indexed annuities will need to be sold through a Financial Institution as defined by the Rule using the Best Interest Contract Exemption (BICE)