Annuity delivery receipt

[Allen Trent]

What is currently the customary process for annuity carriers, especially MYGA, on obtaining proof of consumer receiving their policy (either by mail or delivered by agent) to start the 10/30 day free look period?

Are agents have to get client signature it was delivered, or having to send a form stating it was delivered if handled by agent.

Thank you

 

[DHK]

It's been a while since I sold an annuity - a couple of years. I recall just doing a scan, email, sign, and re-scan back to send to the insurance company.

I'm doing a couple now with Athene and Penn. Athene is far more advanced with e-apps, but Penn is still using PDF documents.

It's usually not a big deal to get done, but it's not necessarily an automatic process.

I wish I could be more helpful.

 

[Allen Trent]

It's been a while since I sold an annuity - a couple of years. I recall just doing a scan, email, sign, and re-scan back to send to the insurance company.

I'm doing a couple now with Athene and Penn. Athene is far more advanced with e-apps, but Penn is still using PDF documents.

It's usually not a big deal to get done, but it's not necessarily an automatic process.

I wish I could be more helpful.

Thanks

I am hearing from agents that almost all require client signature on a delivery receipt while a couple carriers permit the agent to merely send an agent signed document saying it was delivered or mailed by them

 

[scagnt83]

Thanks

I am hearing from agents that almost all require client signature on a delivery receipt while a couple carriers permit the agent to merely send an agent signed document saying it was delivered or mailed by them

Interesting timing of this post.

In certain states, a delivery receipt is not required. It is a carrier specific requirement only.

Most want it signed. But in those states, they cant cancel the policy if its not signed if the policy is already in-force.

 

[Allen Trent]

Interesting timing of this post.

In certain states, a delivery receipt is not required. It is a carrier specific requirement only.

Most want it signed. But in those states, they cant cancel the policy if its not signed if the policy is already in-force.

So, no consequences to agents like withholding commission, etc?

Guessing carriers have harder time requiring state specific items like this, no different that the very weird NAIC replacement form requirements on annuity even if consumer isnt replacing any life or annuity-----that they merely own existing life & annuity. Michigan doesnt have either of these.

 

[DHK]

So, no consequences to agents like withholding commission, etc?

No. In fact, Athene pays commissions out within 24-48 hours of the funding of the contract.

 

[scagnt83]

So, no consequences to agents like withholding commission, etc?

Guessing carriers have harder time requiring state specific items like this, no different that the very weird NAIC replacement form requirements on annuity even if consumer isnt replacing any life or annuity-----that they merely own existing life & annuity. Michigan doesnt have either of these.

I guess some could depending on the timing of it all.

I have one not drafting premium right now for a life case because of it. Therefore comp is withheld.

But once funds hit, as DHK mentioned, they cant withhold or chargeback.

 

[DHK]

But once funds hit, as DHK mentioned, they cant withhold or chargeback.

Unless the client cancels the policy in the first year (or death occured)... or a reduced chargeback in later years per the seling agreement and specific product.