Keys to kick-starting an annuity practice

By Warren S. Hersch - When asked what a new producer needs to do to build a successful practice marketing annuities, George Freeman reels off a checklist: undertake due diligence on partnering carriers that manufacture the products; pursue coursework in annuities from an affiliated wholesaler; and acquire the expertise needed to recommend a solution suitable to the client’s time horizon and financial situation. The last, he says, may dictate against purchasing any annuity. “The absolute first thing that I would tell a new producer is to... click here for more.

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Inside track from National Underwriter

• States and NASD back suitability rule
• IRS looks at use of check to move annuity funds
• Show me state insurance bill includes suitability rules for annuity sales
• ACLI pushes DOL on annuities as 401(k) default investments
• Cerulli looks at challenges ahead for annuities
• Developing the new products needed for boomer payout phase
• Benson: advanced sales pros must ‘get comfortble' with the NASD

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• Subscribe to Annuity Sales Buzz here

Quiz Questions

Question: What impact would the NASD’s Proposed Rule 2821 have on variable annuities?  

a)  The selling rep have a reasonable basis to believe the customer has been informed of the VA’s features.
b)  The customer would benefit from those features.
c)  The variable annuity and underlying subaccounts are, as a whole, suitable.
d)  Reps consider certain factors when recommending a 1035 exchange, such as whether the customer: will incur a surrender charge: will benefit from a product enhancement: has had another 1035 exchange in that account in the prior 3 years.
e)  All of the above

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