Fidelity Cutting Agent Compensation on Two Products

souldeux

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Just in case you guys haven't seen yet, check out these two notifications from Fidelity:

As you may already know, regulatory changes affecting Return of Premium (ROP) riders go into effect on January 1, 2010. In general, these changes will result in enhanced benefits to the customer.

As a result, many companies are increasing their ROP rider rates, while some are discontinuing the benefit altogether.

For Fidelity Life's part, there will be a short term interruption in ROP availability while we implement the revised rider benefits on our systems. It is our intent to re-introduce ROP rider in February 2010.

All applications for the ROP rider must be recieved by Fidelity Life no later than December 31, 2009.

Any application on which the ROP rider is selected received after that date will be amended and the rider will not be issued. In this instance, a signed amendment will be required to reflect the fact that the coverage was issued without ROP.

We recognize the consumer appeal of Return of Premium, and the fact that the rider can be a key feature that enhances the sale of Rapid Decision Term and Mortgage Term. We also feel that it is important to preserve the affordability of this benefit. Therefore, we have reduced commissions payable on the ROP rider in order to maintain rider premium rates at their existing levels. Please contact Sales Support at the number listed below after January 3rd for information on the new ROP commissions.

There will be no premium increase on the ROP rider.
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We expect to re-introduce the ROP rider in February, 2010. We will inform you when the rider becomes available.

If you have any questions, please feel free to contact Fidelity Life's Sales Support at (888) 440-1540.


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Effective January 4th, we are reducing the commissions paid on our Accidental Death Benefit policies. Any Accidental Death Benefit applications received on or after January 4th, will be subject to the revised commission rate.

We trust that you understand the need for carriers to re-evaluate and adjust commissions from time to time to remain balanced. And we thank you for your continued interest in being contracted with Fidelity Life and your business.
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If you have any questions on your commission rate, please feel free to contact Fidelity Life's Sales Support at (888) 440-1540.





Ugh. I now have absolutely no reason to write these guys. Rapid Decision term? No thanks, I'll write RBC ExpressTerm. ROP? Nah, Assurity has a cheaper ROP product that pays better. I just don't understand why insurance companies would toss their agents under the bus like this - we're their marketing and sales force, after all.
 
I'm with you there! I usually write between Fidelity and Assurity, depending on the age. If the client is younger, I've been going with Assurity. Older, Fidelity and Assurity are close to the same, but Fidelity paid quicker. Now we'll just go to Assurity all together.
 
There was only one reason for me to even have the Fidelity contract and that was because Assurity did not have ROP in California.

They have corrected that situation. I can't see myself using Fidelity in the future.

Rick
 
How much did they lower commissions?

I've noticed some companies raising commissions because of the new rop prices. Sucks for the companies that are lowering commissions.

I have a good ad product with UHL if any of you are looking.

[viddler]http://www.viddler.com/player/a2ebbee3/[/viddler]

Click on the button on the bottom right to enlarge the video.

I sell a lot of this product. It is very easy to sell. I think that you can add this to what you are doing and make a lot of money from it.
 
They've got the standard lines of stuff - accidental death, term, a FE product, blah blah blah. All that's being cut from what I've heard are their AD&D and their ROP products.
 
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