Assurity: New and Improved Deferred Annuity Products

Effective October 1, 2022, Assurity is launching new and improved versions of the Encore and Plus One single premium deferred annuities. The revamped products have reduced yet still competitive commissions rates, which help to produce larger interest rate bonuses and higher crediting rates, all while keeping popular product features such as the competitive annual free withdrawal provision. The interest rate guarantee remains at 1 percent for policies issued in 2022. 

Please review your current commission schedule on AssureLINK. There are changes to review regarding Annuity commissions and commissions rules. 

Assurity is also pleased to announce that annuity submitted applications starting October 1 and issued via production reporting through December will receive 12 percent weighting toward Leaders’ Conference 2023 qualification. They will institute a cap that the 12 percent weighting will cap at 50 percent of the Leaders’ Conference requirement. This is a great opportunity to help you earn a well-deserved stay at The Ritz-Carlton in Naples.

Please review the following information regarding selling annuities with Assurity. 

Annuity Suitability/Best Interest Requirements 

• A number of states have now adopted sections of the 2020 NAIC Suitability in Annuity Transactions Model Regulation relating to the best interest standard of care in annuity transactions and setting forth new requirements for producers who make recommendations involving annuities. 
• In those states that have implemented the new rules, when you recommend the purchase, exchange or replacement of an annuity, you must act in the best interest of the consumer under the circumstances known at the time the recommendation is made, without placing your or the insurer’s financial interest ahead of the consumer’s interest. You have acted in the best interest of the consumer when you satisfy obligations related to care, disclosure, conflict of interest and documentation concerning the transaction(s). 
• A Consumer Profile Information Form is included in annuity application packets in states in which the new rules are effective (replacing the Suitability Acknowledgement Form, which remains in place in other states). This form must be completed in full and signed by both you and the proposed owner/applicant before an annuity can be issued. You must also complete and provide the consumer the Agent Disclosure for Annuities Form, also included in annuity application packets. 
• You are further required to make and maintain a written record of any recommendation involving an annuity and the basis for the recommendation. 
• New training requirements are discussed below but may vary by state. 

Producer Training 

• Producers who solicit or sell annuities must complete annuity suitability or best interest training as required by the rules of the state(s) in which they are licensed, which generally includes a training course provided by an authorized educational entity and approved by the state’s insurance division. The satisfaction of the training requirements of another state with substantially similar rules often satisfies the training requirements in other states. 
• Producers will be responsible for providing certification of timely completion of the course to the attention of the licensing department at Assurity. 

Product–Specific Training 

• Both suitability and best interest rules require producers to have adequate knowledge of the product and be in compliance with the insurer’s standards to ensure the product is suitable for or in the best interest of the consumer, as applicable. To comply with this requirement, Assurity has updated its product-specific training program that explains the key features of its annuity products. Producers are required to complete this training program prior to solicitation or sale of an Assurity annuity, which is available through your regional sales representative. Assurity’s new business area will be notified when you have successfully completed the training. 
• All annuity applications received from producers who have not completed training requirements by the applicable deadline will not be processed and will be returned. 
• You are responsible for understanding and complying with the suitability/best interest rules in the states in which you are licensed. Please review the rules in their entirety to be familiar with the specific requirements.

You can find product details, marketing materials, and Agent’s Guide to the Suitability and Best Interest Standards of Care on AssureLINK.

If you have any questions, call us today at 866-568-9649!