December 2011
The Right Annuity Carrier Is Right Here
Since you're reading The Standard's newsletter, the article I'm recommending may constitute "preaching to the choir." However, you may enjoy reviewing, "Key Questions to Help Find the Right Annuity Carrier," an article I wrote that was published in the October issue of California Broker Magazine. In it, I highlighted the need for carriers to "get the fundamentals right." For brokers, it's essential to look for carriers who will be a solid and dependable long-term partner.
We appreciate your partnership and can assure you we'll be here for the long run. Best wishes for the holiday season to you, your associates and family.
Rich Lane
Director, Sales & Marketing
IRS Modifies Partial 1035 Exchange Rules
The IRS has modified the partial 1035 exchange revenue procedure. Effective Oct. 24, 2011, Rev. Proc. 2011-38 reduced the 12-month withdrawal restriction to 180 days.
Prior to this date, a distribution in the first 12 months, from a policy that was involved with a 1035 exchange, could disqualify the tax-exempt status of the exchange. There were several exceptions to this rule, and the IRS put the determination of the tax-exempt status on the financial institutions involved. The IRS modification shortens the distribution-restricted time frame to 180 days and significantly eases the burden of administering these exchanges.
Producer Advisories
Please review these recent compliance alerts.
Illinois — Rule 3120.20 – .90: Suitability of Annuity Sales – Effective Date Extended
California — Assembly Bill 689: Suitability of Annuity Sales
Alaska — Regulation 3 AAC 26.770 – 789: Suitability of Annuity Sales
Kentucky — Regulations 806 KAR 12:120; 806 KAR 9:220.5(3)(a): Suitability of Annuity Sales
Hawaii — Act 108, Memorandum 2011-2LIC Revised: Suitability of Annuity Sales
Indiana — House Bills 1486 & 1015, Bulletin 184: Annuity Training Requirements
Rhode Island — House Bill 6103: Civil Union Arrangements
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Holiday Dates And Deadlines
Offices closed:
Dec. 23 and 26
Jan. 2, 2012
Distributions by December 19, 2011:
- All distribution requests received at the home office complete and without any additional requirements by Dec. 19 will be completed by Dec. 30.
- All requests received after Dec. 19, or incomplete requests will be processed with the intent of completion by Dec. 30; however, we cannot provide the same guarantee.
New Business by December 28, 2011:
- All complete deferred and immediate annuity applications received at the home office by Dec. 28, including premium and without any additional requirements, will be issued by Dec. 30.
- Applications and pending requirements that are met by Dec. 28 will be issued by Dec. 30.
Five More States Adopt Suitability Regulations
Five additional states have enacted annuity suitability and producer training laws and regulations. Refer to our website for a chart of suitability regulations listed by state.