California’s new standard nonforfeiture requirement—placing restrictions on the length and percentage of surrender charges for all annuities issued and delivered to California residents—takes effect January 1, 2017.
Starting that date, Americo Financial Life and Annuity Insurance Company’s 10-year FIAs will be replaced with LibertyMark 10 LT, SE 10 LT, 10 LT Plus, and SE 10 LT Plus. The sevenyear FIAs—7, SE 7, 7 Plus, and SE 7 Plus—will remain available in California after January 1, 2017.
The “LT” and “nonLT” versions of the 10year products share the same great rates—for instance, the two-year point-to-point participation rate for both LibertyMark SE 10 and LibertyMark SE 10 LT is currently 92%.
Product differences are noted below and include updated 10-year surrender charge schedules, an 8%accumulation bonus, and “LT” commission rates.
To receive the 10-year non-LT versions of LibertyMark in California, contracts must be issued by Friday, December 30, 2016. All contracts issued after this date will be issued as “LT,” regardless of when the application was received.
Disclosures—New annuity disclosure forms for California will be available on The Forms Store by the end of December and must be included with new business submitted on and after January 1, 2017.
Avoid new business and commission delays by ensuring the new disclosures are used, and please discard any older versions you may have.
Questions? Please contact DFS Marketing at 855-740-3140.
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FOR AGENT USE ONLY. NOT FOR USE WITH CONSUMERS.