June 10, 2017 through June 30, 2019: The expanded fiduciary definition is in effect for all business involving a deposit to or a withdrawal from an IRA, ERISA Plan or 401 Plan.
Producers must use an Exemption to receive a commission for new sales and additional purchase payments to existing contracts.
Producers who have a Financial Institution in their hierarchy that has signed our DOL Fiduciary Rule Agreement can use the BICE for traditional fixed, fixed-indexed and variable annuity business.
Beginning July 1, 2019: Full compliance with the final fiduciary rule is required for all business involving a deposit to or a withdrawal from an IRA, ERISA Plan or 401 Plan. All transitional accommodations go away.
To use the 84-24 exemption from June 10, 2017 through June 30, 2019, you must:
To use the BICE from June 10, 2017 through June 30, 2019, you must:
Beginning July 1, 2019, the BICE will require a signed agreement with the client and other obligations, in addition to the above requirements.
The Financial Institution is responsible for working with producers to ensure BICE requirements are met. There are no additional requirements from Great American.
June 10, 2017 through June 30, 2019: We will continue to accept IRA, ERISA Plan and 401 Plan fixed-indexed annuity business from producers without a Financial Institution, as the 84-24 Exemption is also available.
Under the rule, a bank, broker/dealer, registered investment adviser or insurance company can serve as a Financial Institution. We must receive a signed DOL Fiduciary Rule Agreement from each entity that will serve as a Financial Institution under the BICE. Please see the Resources section of this webpage for copies of the Agreements. You also may want to view our Broker/Dealer Master Agreement or list of approved Registered Investment Advisors.
Note IMOs having a relationship with an entity eligible and willing to serve as the Financial Institution (such as a registered investment adviser) should use the Agreement for Insurance Agencies. The agreement must be signed by the IMO and the entity serving as the Financial Institution. The entity serving as the Financial Institution must also provide us with a list of producers for whom it will be serving as the Financial Institution.
You will soon be able to view your hierarchy and confirm if there's a Financial Institution by logging into our agent secured website. If you have a Financial Institution in your hierarchy, you will need to contact that Financial Institution to find the processes and procedures applicable to BICE transactions. If you don't have a Financial Institution in your hierarchy, please contact your upline to discuss your options.
You will soon be able to view the downline list of agents for whom you will be serving as the Financial Institution under the BICE by logging into our agent secured website.
Aside from the Exemption requirements outlined above, there are no changes to the new business process, including suitability reviews.
There are no new training requirements. However, we strongly encourage producers to take training on the Rule and are pleased to offer LIMRA's Fiduciary Education for Sales & Service Professionals Program. You can access the training here. Refer to these login instructions for assistance.
Depending on how you were contracted, you may have received a DOL Fiduciary Rule Amendment. No action is required with the amendments. The entities that will be serving as a Financial Institution are required to complete a DOL Fiduciary Rule Agreement. Please see the Resources section of this webpage for samples of these documents. The amendments and agreements apply when the rule takes effect.
There are no changes to our contracting process. Background checks and due diligence requirements will continue as usual.
We did update our contracting paperwork to include the DOL Fiduciary Rule Amendment, so please be sure to visit our agent websites for the most up-to-date versions.
The members of Great American Insurance Group are subsidiaries of American Financial Group, Inc. (AFG). AFG is a holding company based in Cincinnati Ohio. It is a Fortune 500 company whose common stock is listed on the New York Stock Exchange.
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