American Equity – Product Adjustments and Fiduciary Rule Reminder

Product Adjustments

American Equity has issued the following announcements:

General announcement to the field: Click Here

Connecticut specific announcement: Click HereCalifornia specific announcement: Click Here

Fiduciary Rule Reminder

The Department of Labor Fiduciary Rule is now in effect and we want to take this opportunity to remind you of the Rule’s requirements.

Under the Rule, agents are a fiduciary when they sell a fixed or fixed index annuity to a consumer using ERISA retirement plan or IRA funds. Agents need to comply with Prohibited Transaction Exemption 84-24 (PTE 84-24) or the Best Interest Contract Exemption (BICE) in order to receive compensation.

Agents utilizing PTE 84-24 need to comply with the Impartial Conduct Standards and the PTE 84-24 disclosure requirements. Click here for a sample disclosure and for additional information about PTE 84-24. This disclosure does not need to be submitted to us but should be retained in the agent file. PTE 84-24 can be used for fixed index annuities until January 1, 2018. BICE will apply to sales of fixed index annuities on January 1, 2018, unless the Rule is revised.

Agents utilizing BICE need to comply with the Impartial Conduct Standards and submit business through a properly appointed Financial Institution. Additional BICE requirements will be effective January 1, 2018. Click here for information about BICE.

Due to these requirements, we have made changes to our business process. Entities acting as a Financial Institution will need to execute a Selling Agreement with American Equity. A signed Producer Attestation (Form 4510) must be included with all qualified PTE 84-24 business submitted to us from now until the end of the year, including new sales and additional premium submitted by an agent.

We highly recommend you take the LIMRA Fiduciary Rule training that we are providing to agents at no cost. Click here for additional information about the training.

Posted in Bulletins.