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Great American Life Gets IRS Ruling On Taxation Of Fee-Based Annuities

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Great American Life ® is pleased to announce it received a Private Letter Ruling from the IRS that changes the tax treatment of advisory fees. Freeman Durham, Divisional Vice President and Senior Counsel, Great American Insurance Group– Annuities, says,“ We have been working with the IRS and other companies to achieve this change since 2017.

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State insurance regulators moved briskly through four topics as they try to thread the needle between suitability and fiduciary in crafting an annuity sales model law.

An insurance commissioners’ working group opened up a new comment period and scheduled two 90-minute conference calls in a bid to finalize an annuity sales model rule. Comments are being accepted until July 10 on two topics: conflict of interest and the care obligation.

LIMRA and LOMA are offering a comprehensive training program to help sales professionals and home office employees understand and comply with New York Regulation 187.

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Variable annuities are complex insurance products— so complex that what people actually buy and what they think they’re buying may be quite different. Sales of variable annuities have slowed in recent years but were still estimated at about $100 billion in 2018. Insurance companies have different policies about how money gets paid out when someone dies, and…
Industry representatives fill the room for the Annuity Suitability Working Group meeting at the Midtown Hilton in Manhattan. (Photo by John Hilton)
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State insurance regulators moved briskly through four topics as they try to thread the needle between suitability and fiduciary in crafting an annuity sales model law.

Acting Albany County Supreme Court Justice Henry Zwack ruled that the New York State Department of Financial Services was within its authority when it issued Regulation 187. The regulation took effect Thursday for annuity sales in New York, and will extend to life insurance sales in six months.
Many seniors are not prepared for the cost of retirement.

Forty percent of non-retired Americans say that “how much income they’ll have in retirement” is the most important question they face about retirement. And eight in ten (80%) non-retirees indicate they lack a specific financial plan that they follow. One-third are not preparing for retirement because they don’t have enough time.
The National Association of Insurance Commissioners creates model laws for states to pass.

The Annuity Suitability Working Group aims to tentatively finalize a standard for annuity sales by the National Association of Insurance Commissioners’ Fall Meeting in November. Debate over whether to add “prudence” to the model law dominated another 90-minute conference call Monday.

Retirement is the time in your life when you can throw off the shackles of your daily responsibilities and truly enjoy the fruits of everything you spent years working toward. It’s an empowering feeling and you’ve earned it. You’ve planned and you’ve saved, but now that you’re here, don’t make the mistake of believing your financial planning is over.

The Annuity Suitability Working Group is working through five questions in a bid to finalize an annuity sales model law that regulators have been working on for more than a year. Members are focusing on insurers in a bid to rein in annuity sales incentives.

Principal Financial Group issued the following news release:. Principal Financial Group (R) today announced that Scott Boyd has joined the company as Head of Sales for Workplace Savings and Retirement Solutions in the Retirement and Income Solutions division, effective August 12, 2019. Prior to joining Prudential, Boyd worked as a strategy consultant for…

In this AM BestTV episode, Ken Johnson, senior director, and Thomas Rosendale, director, both of AM Best, examine how changes in product mix and asset allocation, along with a focus on asset liability and enterprise risk managements, will likely affect life/annuity insurers in the event of an economic slowdown. v= la719 to view the entire program.
The National Association of Insurance Commissioners creates model laws for states to pass.

The Annuity Disclosure Working Group is studying a proposal to increase the time indexes must be in existence to be used in annuity illustrations from 10 to 15 years. But regulators are having difficulty getting past a couple of key issues.

Although retirement is a milestone for all working adults, decades of hard work may not pay off if you haven’t planned for your financial needs once a regular paycheck stops coming. According to research by the Insured Retirement Institute, millions of Baby Boomers stepping into their retirement years have unrealistic expectations and lack a full…

California Insurance Commissioner Ricardo Lara’s office said the state may push for a best-interest annuity sales rule similar to New York’s if the NAIC doesn’t tighten up its annuity sales proposal. An NAIC working group has two conference calls and an in-person meeting to discuss the rule over the next two weeks.

Jul. 18– CHARLOTTE, N.C.– A south Charlotte financial adviser is accused of bilking his clients and a national insurer out of at least a half-million dollars and spending the money on himself, according to a federal grand jury indictment unsealed on Thursday. Sampson Pearson sold life insurance products and annuities as an independent contractor for Milwaukee-…
AmeriLife Group, which markets and distributes annuity, life and health insurance products, has acquired a majority interest in Brookstone Capital Management

AmeriLife Group, an independent marketing organization, has acquired a majority interest in Brookstone Capital Management, an advisory firm. The combined organization will have more than $3.5 billion in annual life, health and annuity premiums and $2.7 billion in assets under management (AUM).

Allianz Life, a provider of retirement solutions, including fixed and variable annuities and life insurance for individuals, issued the following news release:. According to the 2019 Life Insurance Needs Study from Allianz Life Insurance Company of North America, women lack familiarity with a number of important benefits offered by permanent life…

Athene USA, a leading provider of retirement savings products, announced the launch of Athene ® Amplify, a registered index-linked annuity with design features that set it apart in a fast-growing product category. Athene ® Amplify is issued by Athene Annuity and Life Company, a subsidiary of Athene. “Athene Amplify, our first registered index-linked annuity,…

A magistrate judge denied a motion by Ohio National to dismiss a class-action lawsuit filed in March by Stephen Cook, a Dallas-based advisor affiliated with Triad Advisors. Judge Stephanie Bowman also recommended that the case be consolidated with a similar one brought by LPL Financial broker Lance Browning.

–To help jump-start retirement planning, the Indexed Annuity Leadership Council has released the first video in a three-part series designed to educate Americans about getting ready for life after work. “The best option for retirement is a diversified portfolio,” said Jim Poolman, Executive Director of the IALC. “We hope to use these videos to help pre-retirees…

Dodgers and Golden State Warriors, pocketed about $9 million in the scheme. Criminal charges have not been filed against Sugarman– the son-in-law of entertainment and sports mogul Peter Guber– but the SEC has requested that the court order him to “disgorge all ill-gotten gains.” The SEC alleges Sugarman orchestrated the tribal bond scheme along with business…

–A practical new calculator is helping independent agents show their annuity and life insurance clients the tax benefits of two products over one. The Prosperity Select Combo Calculator, created by Oxford Life Insurance Company ®, offers an instant comparison of the after-tax value of an annuity purchase versus the after-tax value of an annuity-life…

Jul. 7– In May, the U.S. House of Representatives passed the most significant retirement-savings bill in more than a decade. It’s called the Setting Every Community Up for Retirement Enhancement, or the SECURE Act of 2019.. –529 plans. 529 plans would be expanded to pay for expenses related to an apprenticeship or to pay back as much as $10,000 in student loans.

Qualified Longevity Annuity Contracts delay RMDs like nothing else can. They also protect against market risk, a key when clients are thinking longevity.

Although many precursors to the 2008-2009 financial crisis are repeating today, AM Best believes the life/annuity industry is much more resilient than a decade ago and well-positioned to navigate future challenges. Macroeconomic conditions in the United States soon became more unfavorable as the effects of the subprime crisis started to emerge.
The National Association of Insurance Commissioners creates model laws for states to pass.
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An insurance commissioners’ working group opened up a new comment period and scheduled two 90-minute conference calls in a bid to finalize an annuity sales model rule. Comments are being accepted until July 10 on two topics: conflict of interest and the care obligation.

TIAA launched a new brand and advertising campaign that takes a different approach to encourage people to think about how they are planning for retirement. “We can all relate to the feeling of running out of things we love and rely on– whether it’ s your favorite TV series or milk for your coffee,” said Mark Elliot, Chief Marketing Officer of TIAA.“ We want to tap into…

Horace Mann Educators Corporation today announced that a subsidiary of Reinsurance Group of America, Incorporated, a leading global life reinsurer, has reinsured a $2.9 billion block of Horace Mann’ s annuity business effective April 1, 2019. In addition, Horace Mann announced that it has entered into a new five-year $225 million revolving line of credit,…
Many families are struggling to make ends meet despite the strong economy.

Many people worry about running out of money in retirement. Getting rid of a car could save you nearly $9,000 a year, which is the average cost of car ownership according to AAA. A study for the National Bureau of Economic Research found that delaying the start of retirement from age 62 to age 66 could raise someone’s annual, sustainable standard of living by 33%.

Vanguard Variable Annuity contracts will still be guaranteed by the Transamerica Premier Life Insurance Company and, in New York State only, by Transamerica Financial Life Insurance Company. Vanguard will continue to manage the Vanguard Variable Insurance Funds, which are the underlying investments in the Vanguard Variable Annuity.

–Nationwide announced today it has added a new fixed indexed annuity, Nationwide Peak ® 5, to offer clients additional ways to maintain principal protection while offering the potential for higher returns and growth. More than seven in ten investors think there is a chance of another stock market crash in the next six months. 1 As a result, $16.1 trillion is…

The Insured Retirement Institute issued the following news release:. The Insured Retirement Institute welcomed Chelsea Crucitti as Director of State Affairs. Crucitti began her career in state government affairs as an intern in the Vermont State Senate before joining KSE FOCUS LLP in Montpelier, Vermont where she focused on tracking and reporting on…

“This transaction gives AmeriLife the financial flexibility to continue building the best independent, national distribution organization serving the rapidly growing pre-retiree and retiree markets,” said Scott R. Perry, CEO of AmeriLife. “In addition to enhancing our financial flexibility, we’re pleased that the transaction attracted a broader group of…

The rule proposed by the New Jersey Bureau of Securities would require all financial advisors registered in the state to act as fiduciaries, making New Jersey one of the first states to propose a uniform fiduciary standard for all financial services professionals.
Annuities are attractive for advisors and clients because they offer income retirees cannot outlive.

Overall annuity sales fell 3.6% in the first quarter of 2019, with combined sales of fixed and variable annuities of $57.8 billion as compared to sales of $59.9 billion in the fourth quarter of 2018, according to the Insured Retirement Institute, based on data reported by Beacon Research and Morningstar.

JOHNS CREEK, Ga., June 13, 2019– Ebix, Inc., a leading international supplier of On-Demand software and E-commerce services to the insurance, financial, healthcare and e-learning industries announced that it has continued to expand on its market share in the industry by partnering with Centaurus Financial, Inc. to offer annuity products on its AnnuityNet…

At a time when pensions are dissappearing and many employee retirement account balances are inadequate and incapable of meeting future retirement needs, DIETRICH announces the launch of ANNUA, a defined contribution retirement income annuity practice. ANNUA challenges the status quo of traditional retirement plans by introducing lifetime income…

The Western and Southern Financial Group, a life insurance company, issued the following news release:. W&S Financial Group Distributors, Inc., wholesale distributor of annuities and life insurance from member companies of Western& Southern Financial Group, is addressing retirement risk factors with IncomeSource (R) Select, its fexible premium deferred…
Annuities are attractive for advisors and clients because they offer income retirees cannot outlive.

Commissioner Doug Ommen hopes to retain suitability ideas even as the word is scrubbed from his annuity sales proposal. The driving force is to harmonize state insurance regulations with the new Securities and Exchange Commission’s Regulation Best Interest, Ommen explained.

Morgan Stanley at Work today released an employee financial wellness study conducted by the Financial Health Network on behalf of the organization. The study finds that financial wellness is an opportunity for employers to reduce employee stress, improve retention and engagement and set themselves apart in the marketplace. “Providing financial wellness…
The National Association of Insurance Commissioners creates model laws for states to pass.

The National Association of Insurance Commissioners’ working group is studying a proposal to double the time indexes must be in existence to be used in annuity illustrations from 10 to 20 years. Regulators are concerned that consumers are being misled by unrealistic indexed annuity illustrations.

“We’re proud to have made significant progress with key strategic priorities, as well as improving all aspects of the Envestnet user experience,” said Molly Weiss, Head of Product for Envestnet. Envestnet Exchanges- Significant updates in this release focused on improving Envestnet workflows and deepening integration with the exchanges powered by…

Birmingham, Ala. (June 3, 2019): Protective Life Corporation (Protective), a wholly owned U.S. subsidiary of Dai-ichi Life Holdings, Inc. (TSE:8750),…

–Dynamic Wealth Advisors has partnered with RetireOne ® to offer insurance and annuity back office services for the wealth management firms it supports. This is significant for our wealth managers who develop holistic financial plans incorporating solutions that optimize tax efficiency, and manage longevity risk, sequence of returns risk, and other…
The breakdown of first-quarter deferred annuity sales.

Total first-quarter, non-variable deferred annuity sales were $33.4 billion — up 2.6% when compared to the previous quarter and up 44.8% when compared to the same period last year. Non-variable deferred annuities include the indexed annuity, traditional fixed annuity, and MYGA product lines.

“Jackson is committed to meeting advisors where they are and providing a spectrum of options to meet consumer preferences,” said Scott Romine, President, Advisory Solutions, Jackson National Life Distributors LLC.“ We’ re excited to work with TD Ameritrade to make our fee-based products available to even more independent RIAs. “Annuities can serve as a critical…

–BNY Mellon’s Pershing today announced a series of enhancements to its Subscribe ® annuity platform, which helps advisors streamline how they process, service and maintain annuities. Among the key updates is eSignature capability, which will set a new standard for the industry and change the way advisors purchase annuities. “We are thrilled to be at the…
Life insurance sales are stagnant, but profits are still being made.

The U.S. life/annuity industry’ s net income in the first quarter of 2019 rose sharply over the prior-year period, to $14.9 billion from $3.2 billion, due mainly to a significant decline in total expenses. According to the report, the L/A industry’ s total income for the first three months of 2019 declined slightly by 1.3% from the prior-year period.
Annuities are attractive for advisors and clients because they offer income retirees cannot outlive.

Created with Raymond James, the new annuity will be offered through financial institutions, banks and independent broker dealers. It is the only annuity on the market to offer crediting strategies with both upside and downside participation rates, Great American Life said in a news release.

MetLife, a provider of insurance, annuities and employee benefit programs, issued the following news release:. MetLife has appointed two seasoned international leaders to its Employee Benefits business to further enhance its offering to intermediary partners and focused customer segments in the Gulf. Lilia Mokhtari will join MetLife in the Gulf as Head of…

–AmeriLife Group, LLC, a national leader in developing, marketing and distributing annuity, life and health insurance solutions, today announced an expanded partnership with One Resource Group that will enable ORG’s 10,000 agents and advisors to refer their clients with confidence to AmeriLife Direct’s Medicare experts and full-service platform.
Annuities are attractive for advisors and clients because they offer income retirees cannot outlive.

A group annuity risk transfer product, such as a pension buy-out product, allows an employer to transfer all or a portion of its pension liability to an insurer. These product sales surpassed $4.7 billion in the first quarter 2019, an increase of 240% year-over-year.
Annuities are attractive for advisors and clients because they offer income retirees cannot outlive.

Overall, U.S. annuity sales were $60.8 billion; an increase of 17% from the first quarter 2018 results. It is the highest first quarter for total annuity sales going back a decade.