Insurance Agent Forum

[James]

EIA is a FA, any way you look at it. It is fix with a guarantee FIX rate, once again the debate comes with the "Extra" rate that may materalize or may not. The seperate account comment was on how State DOI generally views to decide if it is Insurance or a Variable/Securities, so the EIA falls under the Insurance side not the Security side and rightly seen that way by all States that I know of or interested in.

I've also noted in many cases complaints from seniors (which I don't know when they recieved "Special Protection") noted by so many about EIA's I often find someone with a 7 Lic. or RIA/IA, just laugh when I see that! Obviously not in all cases but many that I have been given links to to show the abuse by the evil insurance agent that everyone so hates!

[al3]

Originally Posted by James

EIA is a FA, any way you look at it. It is fix with a guarantee FIX rate, once again the debate comes with the "Extra" rate that may materalize or may not. The seperate account comment was on how State DOI generally views to decide if it is Insurance or a Variable/Securities, so the EIA falls under the Insurance side not the Security side and rightly seen that way by all States that I know of or interested in.

I think this whole issue is really a turf-war between BDs and insurance companies. The RRs don't want to see agents encroach on their turf. They want a 'monopoly' on selling FIAs. My own personal experience, I've known, met, and read about many, many, MANY more crooked, corrupt, sleazy RRs than licensed life agents. YMMV.

Al

[senior-advisor-indiana]

Most RR dont care to even sell FIA. They just dont want us insurance agents making more than they do. Plus they lose alot of VA biz to FIA.

WHAT STATE ARE YOU IN JMO????????????????????????????????

[arnguy]

JMO has been asked that at least 3 times. I think it is a military secret!

P.S. I hope that it is not the state of confusion!

[senior-advisor-indiana]

[James]

Originally Posted by JMO Fan

NASD statements are the 'shot across the bow.'

Yea kind of like the Merrill Rule being rejected, geez now we have all these Rep's wondering what their world will look like tomorrow as now Fiduciary and Suitability might mean something to them.

[James]

Let us not also forget about the EIUL! I would think the same argument could be use for them as well as the EIA if you fall for this nonsense.

[JMO Fan]

Originally Posted by James

Let us not also forget about the EIUL! I would think the same argument could be use for them as well as the EIA if you fall for this nonsense.

That seems accurate, EIUL will be affected as well as EIA if/when the SEC (or federal court) ultimately makes a decision. If the SEC says they're all securities, the NASD will be validated. If they decide EI products are not securities, the NASD will be embarrassed (although the NAIC might feel better).

The NASD is closely affiliated with the SEC (and registered reps). The NAIC represents the states (which means me). Which do you think the SEC will side with?

[James]

Originally Posted by JMO Fan

That seems accurate, EIUL will be affected as well as EIA if/when the SEC (or federal court) ultimately makes a decision. If the SEC says they're all securities, the NASD will be validated. If they decide EI products are not securities, the NASD will be embarrassed (although the NAIC might feel better).

The NASD is closely affiliated with the SEC (and registered reps). The NAIC represents the states (which means me). Which do you think the SEC will side with?

Well that is about the only thing you posted I can agree with, you may very well be correct but I would think it is bound to be decided by the Courts, unfortunely the Federal Courts. Then it depends if it is heard in say the 9th Circus Court or the 4th Circuit Court.

[healthagent]

I don't know what the big stink is all about. Register them as securities and agents just have to pass another test. If they can't pass the securities test they shouldn't be talking about financial vehicles in the first place.

[James]

Originally Posted by john_petrowski

I don't know what the big stink is all about. Register them as securities and agents just have to pass another test. If they can't pass the securities test they shouldn't be talking about financial vehicles in the first place.

Totally disagree with this on so many levels I don't even know where to start.

[healthagent]

Well I certainly don't want some life insurance agent 2 weeks behind on his car payment coming over my house to explain to me why my equity investments and CDs "suck" and I should move the money into an annuity. I'd ask him to compare my DRIPs and most likely he'd say "what the hell is a DRIP?"

[slushhhpuppie]

Originally Posted by johnrocks

good point, I really don't understand how variable annuities are regulated but not Equity Indexed annuities I really wish someone could shed some light on that for me.

Because they offer a minimum guaranteed return backed by the full faith and credit of an insurance company.

EIA's are great for conservative investors who want to participate in market gains, without equity exposure. Even if the market tanks, they enjoy a minimum return that beats most CD's and MMA's.

[James]

Just another idea of Federal Encroachment, Regulations and restrictions from such as the SEC have been generally marching forward, it has to stop sooner or later. Yet they will not stop here if any one thinks that giving them EI's will quench their thirst. Most people that are all for EI's to moved to Securities are the same that agrees that the Tax Advantage of Insurance to be removed also. Only thing we do by giving in is to validate these people never ending thirst of Federal Powers, such people as the SEC and NASD understand that these Reg's only support their people over the Insurance people.

[James]

Originally Posted by john_petrowski

Well I certainly don't want some life insurance agent 2 weeks behind on his car payment coming over my house to explain to me why my equity investments and CDs "suck" and I should move the money into an annuity. I'd ask him to compare my DRIPs and most likely he'd say "what the hell is a DRIP?"

That is your choice, a choice you should have! See, take away someone rights equals less choice for you. This is called by many the slipperly slope, such as "Gouging Laws", they are misplaced and work against the general well being of the population. Yet so many people are so dumb down they simply can not grasp obvious laws of supply and demand.

[healthagent]

Well we've been down this road before so this will be my last post on this topic:

When I meet with clients I'm trained and licensed to sell health insurance. I can compare the policy they currently have and make a recommendation on whether or not they should move.

The average life agent sits down with a potential annuity client and is asked to compare financial vehicles that they have had no formal training on. There are many types of CDs and a myriad of investments. I'm not sure how any agent can recommend that "X" amount of anyone's portfolio be moved into any annuity basically by talking out their ass.

I would also be interested in what kind of training the average annuity agent gets before being unleashed on the unsuspecting public. My guess would be the same amount of training we all get - none. They should be in people's homes talking about investments? It's bad enough we have horribly trained agents in the health industry. These agents either don't know the ramifications of "Right Start" or "Copay Saver" or simply don't care. Their evil twin counter parts are running Red Lobster dinners scaring the crap out of seniors with misinformation and basically not knowing their ass from a hole in the wall.

Opinions vary. I rest.