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Michael J. Prestwich President and Founder |
Training Videos
Producer Info / Create Client - 13 minutes Training Session 2 Assets and Cash Flow - 26 minutes Training Session 3 Have someone else enter client data - 16 min. Recorded Webinars "Annuity Suitability Boot Camp, Session 1 of 3" (Suitability increases annuity sales - 33 min.) "Annuity Suitability Boot Camp, Session 2 of 3" (Example of suitable annuity sale - 44 min.) "Annuity Suitability Boot Camp, Session 3 of 3" (Save client $15,000 per year in taxes - 33 min.) "System for Insurers and Producers to comply with NAIC 2010 Suitability Model Regulation" (Executive Summary - 13 minutes) "System for Insurers and Producers to comply with NAIC 2010 Suitability Model Regulation" Insurer Secondary Review, Producer Supervision "A Group Approach to Suitable Sales" (Producer, Assistant, and IMO Work Together to Make A Suitable Annuity Sale - 40 minutes) "Big Changes Ahead: How the NAIC 2010 Suitability Model Regulation Affects Producers" (Why Suitability Matters to Producers - Suitability Made Easy - 30 minutes) |
NAFA Principles on Suitability These guiding principles are quickly being adopted by the life insurance industry NAFA Principles on Advertising Guidelines for anything your client sees, including illustration software, sales presentations, websites, seminars, and direct mail Why Regulators Are Concerned 24 screen presentation from Wisconsin Office of the Commissioner of Insurance explaining why regulators are concerned about Annuity Suitability and the laws that have been enacted since 2004 to protect consumers NAIC Proposed Annuity Disclosures The NAIC has a committee "to improve the disclosure of information provided for annuity products, including indexed annuities." |
Confidential Client Interview Form
Word Format PDF Format Prepare for Tougher Annuity Standards Read Mike's October 6, 2010 article on InsuranceNewsNet Annuity Marketing Brochure Two page overview of ImagiSOFT's Annuity Marketing and Suitability System 
Annuity Suitability Laws help producers sell more annuities because they require producers to match their product with their customer's needs. |
| NAIC Suitability in Annuity Transactions Model Regulation | Annuity Producer Translationn | Video |
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Prior to the execution of a purchase...of an annuity resulting from
a recommendation, an insurance producer...shall make reasonable
efforts to obtain the consumer’s suitability information.
Suitability Information (Source) (1) Age; (2) Annual income; (3) Financial situation and needs, including the financial resources used for the funding of the annuity; (4) Financial experience; (5) Financial objectives; (6) Intended use of the annuity; (7) Financial time horizon; (8) Existing assets, including investment and life insurance holdings; (9) Liquidity needs; (10) Liquid net worth; (11) Risk tolerance; and (12) Tax status. |
"Prior" means a two interview process that uses a detailed
fact finder
that gathers — as a minimum — the Suitability Information listed at
the left.
Discover your client's needs by asking a lot of pertinent questions about their assets, income, expenses, risk tolerance, life expectancy, family situation, and future goals that the CPA, lawyer, or any of your competitors probably haven't asked. Be able to prove that your customer's needs had a higher priority than your commissions. Nearly every complaint or unfavorable article mentions "high" commissions as being the primary reason that the annuity producer sold the policy to the unsuspecting consumer. |
9 minute interview with Michael Prestwich
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In recommending to a consumer the purchase of an annuity...the
insurance producer...shall have reasonable grounds for
believing that the recommendation is suitable for the consumer on
the basis of the facts disclosed by the consumer as to his or her
investments and other insurance products and as to his or her
financial situation and needs, including the consumer’s suitability
information, and that there is a reasonable basis to believe all of
the following:
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Find the problem. For Example::
Bottom line: Your product will probably be deemed unsuitable if your customer cannot explain how the product works, the advantages, disadvantages, what problem it solves and how it fits into their overall financial plan. |
30 million dollar producer uses DataNet to be more productive and to
prove that he complies with Florida suitability laws
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| Agents must establish a system to comply with this regulation. Agents must follow written procedures to comply with this law. | "System" - you can fill a bunch of files with paper, or impress your clients by installing DataNet now and using it to its full potential. | |
| Agents must keep records for a minimum of 3 to 10 years (some states as long as the contract is in force). | Keep records on how and why you made your annuity recommendations. Without records there is no way to prove that you made a suitable sale if your integrity is ever challenged. Can't prove your sale is suitable? Then it is not. | More DataNet Training Tutorials |
| Companies must conduct periodic reviews of agent's records designed to detect and prevent violations of the regulation. | Dozens of companies have been fined millions of dollars because they failed to properly supervise their agents. Don't be surprised if your company asks you to tell them about your "system," sales methods, presentations, and illustrations. | |
| An agent or agency must take appropriate corrective action for any consumer harmed by a violation of this regulation. |
If something goes wrong with the sale, you must fix it. This
wording allows attorneys to sue you and your companies. See
Please Don't Feed The Lawyers
Bottom line: Suitability means you take care of your clients first — and you are able to prove it. |
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IMAGISOFT
, Inc. PO Box 13208 Albuquerque,
NM 87192-3208 (877) 510-4702 tech.support@imagisoft.com
Copyright 2011, ImagiSOFT, Inc. All Rights Reserved |
