Genworth Financial Inc. (NYSE:GNW) is rolling out a linked-benefit policy that links single premium non-qualified deferred annuity with a long term care insurance rider.
Called the Total Living Coverage Annuity, the policy is being underwritten by Genworth Life Insurance Company, a unit of Genworth, Richmond, Va.
The contract allows policyholders to use their annuity value to purchase LTC insurance coverage up to three times the amount of their single premium, says Buck Stinson, president of Genworth's U.S. Life Insurance Products...
L&HN: Annuity With LTC Rider Debuts
Wednesday, March 31, 2010
Annuities are perfect for some investors
Annuities do have their advantages, lifetime income, inflation protection, and principle protection among others. On the other hand, expect a lower return on your investment, and your money is often locked in. Even so, one Burbank woman found it to be perfect.
Three years ago, on Christmas Day, Gloria Perico lost her husband, Orlando. It was a tough time.
"I was very desperate the day he died, on Christmas morning," said Perico. "I had no idea what I was going to do..."
ABC-7: Annuities are perfect for some investors
Three years ago, on Christmas Day, Gloria Perico lost her husband, Orlando. It was a tough time.
"I was very desperate the day he died, on Christmas morning," said Perico. "I had no idea what I was going to do..."
ABC-7: Annuities are perfect for some investors
Tuesday, March 30, 2010
A Hidden Tax on Annuities Lurks in the Health Care Reform Law
The Obama administration is trying to encourage people to buy annuities to ensure that they don't outlive their savings. But a little-noticed provision of the new health care reform law will slap a 3.8% tax on payouts from annuities purchased by high-income earners outside their workplace. And, not surprisingly, the life insurance industry isn't happy about that.
Life insurers, which have sold approximately 15 million so-called "nonqualified" policies containing some $710 billion in assets, hope to get this particular provision of the Health Care and Education Reconciliation Act of 2010 repealed...
DailyFinance: A Hidden Tax on Annuities Lurks in the Health Care Reform Law
Life insurers, which have sold approximately 15 million so-called "nonqualified" policies containing some $710 billion in assets, hope to get this particular provision of the Health Care and Education Reconciliation Act of 2010 repealed...
DailyFinance: A Hidden Tax on Annuities Lurks in the Health Care Reform Law
Banks Annuity Sales Plunge
Annuity sales in banks have gotten off to a poor start this year, according to Kehrer-LIMRA... Total annuity sales in banks were 44% lower than in January 2009, Kehrer-LIMRA reports.
“We haven’t seen total annuity sales fall this low in a decade” says Janet Cappelletti, associate research director at Kehrer-LIMRA, a unit of LIMRA, Windsor, Conn.
About $2.4 billion of fixed and variable annuities were sold in banks in January, down from $4.2 billion in January 2009... Bank channel sales of fixed annuities fell to $1.3 billion, down 61% from $3.5 billion...
NU: Banks Annuity Sales Plunge
“We haven’t seen total annuity sales fall this low in a decade” says Janet Cappelletti, associate research director at Kehrer-LIMRA, a unit of LIMRA, Windsor, Conn.
About $2.4 billion of fixed and variable annuities were sold in banks in January, down from $4.2 billion in January 2009... Bank channel sales of fixed annuities fell to $1.3 billion, down 61% from $3.5 billion...
NU: Banks Annuity Sales Plunge
Insurance regulators bolster annuity suitability rules
New amendments to the National Association of Insurance Commissioners’ annuity suitability model regulations will hold carriers responsible for ensuring that all annuity transactions are suitable for clients.
Previously, the suitability rule imposed an obligation on insurers only with respect to variable annuities. The rule originally was intended to bring more states in line in terms of suitable standards for fixed annuities...
Investment News: Insurance regulators bolster annuity suitability rules
Previously, the suitability rule imposed an obligation on insurers only with respect to variable annuities. The rule originally was intended to bring more states in line in terms of suitable standards for fixed annuities...
Investment News: Insurance regulators bolster annuity suitability rules
Low interest rates make pensions look especially good
What's good for America isn't necessarily good for all Americans. Case in point: low interest rates.
The government has cut short-term rates (which the Federal Reserve controls) to essentially zero, and it has spent more than $1.5 trillion buying assets and mortgages to hold down long-term rates (which are controlled by the financial markets). This is good for the U.S. economy as a whole, and especially good for borrowers. But these artificially low rates are terrible for savers, especially for retirees who want to convert their lifetime savings into lifetime income...
WaPo: Low interest rates make pensions look especially good
The government has cut short-term rates (which the Federal Reserve controls) to essentially zero, and it has spent more than $1.5 trillion buying assets and mortgages to hold down long-term rates (which are controlled by the financial markets). This is good for the U.S. economy as a whole, and especially good for borrowers. But these artificially low rates are terrible for savers, especially for retirees who want to convert their lifetime savings into lifetime income...
WaPo: Low interest rates make pensions look especially good
Primerica Discounted in IPO as Citigroup Unravels Weill Deals
Primerica Inc., the insurance business that Sanford I. “Sandy” Weill used to build Citigroup Inc., is selling shares in an initial public offering at a discount to its competitors.
Primerica plans to raise $252 million tomorrow, a filing with the Securities and Exchange Commission and Bloomberg data showed. At the middle of its price range, the Duluth, Georgia- based distributor of consumer-finance products from term-life insurance to mutual funds would be valued at 6.74 times earnings after accounting for its planned reorganization. That’s 29 percent less than the median for U.S. life and health-insurance providers, data compiled by Bloomberg show...
Business Week: Primerica Discounted in IPO as Citigroup Unravels Weill Deals
Primerica plans to raise $252 million tomorrow, a filing with the Securities and Exchange Commission and Bloomberg data showed. At the middle of its price range, the Duluth, Georgia- based distributor of consumer-finance products from term-life insurance to mutual funds would be valued at 6.74 times earnings after accounting for its planned reorganization. That’s 29 percent less than the median for U.S. life and health-insurance providers, data compiled by Bloomberg show...
Business Week: Primerica Discounted in IPO as Citigroup Unravels Weill Deals
Monday, March 29, 2010
State fines, then gives some back to AXA Equitable
What the state of New York takes, it can also giveth back.
The state announced a $1.25 million grant to AXA the same day a different state agency fined the company $1.9 million for life insurance violations.
On Friday morning, state Insurance Superintendent James Wrynn announced that the state Insurance Department had fined AXA Equitable Life Insurance Co. $1.9 million for violations, including making inaccurate or incomplete disclosures to consumers buying replacement annuity contracts and life insurance policies. The violations occurred from Jan. 1, 2001, to June 30, 2006...
Syracuse.com: State fines, then gives some back to AXA Equitable
The state announced a $1.25 million grant to AXA the same day a different state agency fined the company $1.9 million for life insurance violations.
On Friday morning, state Insurance Superintendent James Wrynn announced that the state Insurance Department had fined AXA Equitable Life Insurance Co. $1.9 million for violations, including making inaccurate or incomplete disclosures to consumers buying replacement annuity contracts and life insurance policies. The violations occurred from Jan. 1, 2001, to June 30, 2006...
Syracuse.com: State fines, then gives some back to AXA Equitable
B-Ds reluctant to OK exchanges into LTC
Paperwork, suitability, supervision key concerns in swapping clients out of annuities or insurance
Financial advisers had hoped to begin this year with new momentum — the ability to swap clients out of existing annuities or insurance in exchange for long-term-care coverage — but broker-dealers have hit the brakes, citing problems with large amounts of paperwork to process the business, among other troubles...
Investment News: B-Ds reluctant to OK exchanges into LTC
Financial advisers had hoped to begin this year with new momentum — the ability to swap clients out of existing annuities or insurance in exchange for long-term-care coverage — but broker-dealers have hit the brakes, citing problems with large amounts of paperwork to process the business, among other troubles...
Investment News: B-Ds reluctant to OK exchanges into LTC
Hey kids! How about a Life Insurance Mandate?
In order to address the national debt and social security funding issues it may occur to Obama and the party that all citizens should be required to purchase a life insurance policy with the federal government as the beneficiary. This would be in the interests of the majority of the people as any loss in future tax revenue needed to fund government entitlement programs and debt service resulting from the untimely death of the citizen in question would be covered by the mandated life insurance policy.
Each citizen's estimated work-life income could be calculated based upon life expectancy, education, and past income. Inequities attributed to race, educational opportunity, family history and other social factors would be balanced by government subsidies and tax credits to promote social justice...
AT: Hey kids! How about a Life Insurance Mandate?
Each citizen's estimated work-life income could be calculated based upon life expectancy, education, and past income. Inequities attributed to race, educational opportunity, family history and other social factors would be balanced by government subsidies and tax credits to promote social justice...
AT: Hey kids! How about a Life Insurance Mandate?
Day Traders 2.0: Wired, Angry and Loving It
Remember the day traders?
They were hard to miss during the tech-stock mania a decade ago, when the Nasdaq seemed like a casino built by morons and a chimp with darts could pick winners, The New York Times’s David Segal reports from Encinitas, Calif. You would hear about these guys — nearly all of them were guys — and wonder: Could anyone make a living this way? And if the answer was yes, why were the rest of us suckers still holding down regular jobs?
DealBook: Day Traders 2.0: Wired, Angry and Loving It
They were hard to miss during the tech-stock mania a decade ago, when the Nasdaq seemed like a casino built by morons and a chimp with darts could pick winners, The New York Times’s David Segal reports from Encinitas, Calif. You would hear about these guys — nearly all of them were guys — and wonder: Could anyone make a living this way? And if the answer was yes, why were the rest of us suckers still holding down regular jobs?
DealBook: Day Traders 2.0: Wired, Angry and Loving It
Advisers can use reform to reach out to clients who own small businesses
Increased uncertainty about costs and taxes is fueling discussion; doctors worried
A number of financial advisers are using the health care reform legislation passed last week as an opportunity to reach out to clients and review their investment portfolios.
In particular, there is an opportunity for advisers to work closely with small-business-owner clients — and even more so with clients who run their own medical practices, advisers said.
“I have received many calls from small-business owners concerned about the legislation,” said Dr. Brian Knabe, a financial adviser with Savant Capital Management Inc., who also has been a primary-care physician for the past 14 years. “But particularly, I think there is a huge opportunity for advisers to work with physicians who are worried about their salaries' decreasing and their taxes' increasing..."
Investment News: Advisers can use reform to reach out to clients who own small businesses
A number of financial advisers are using the health care reform legislation passed last week as an opportunity to reach out to clients and review their investment portfolios.
In particular, there is an opportunity for advisers to work closely with small-business-owner clients — and even more so with clients who run their own medical practices, advisers said.
“I have received many calls from small-business owners concerned about the legislation,” said Dr. Brian Knabe, a financial adviser with Savant Capital Management Inc., who also has been a primary-care physician for the past 14 years. “But particularly, I think there is a huge opportunity for advisers to work with physicians who are worried about their salaries' decreasing and their taxes' increasing..."
Investment News: Advisers can use reform to reach out to clients who own small businesses
AIG Increases Concentration of Storm Risk With Divestitures
American International Group Inc., the insurer that stayed profitable through the Sept. 11 attacks and Hurricane Katrina, may be more exposed to disasters after divesting life insurance units to repay its government bailout.
AIG will be a “smaller and more focused company” after selling American Life Insurance Co. and AIA Group Ltd., divisions that produced more than a third of the firm’s insurance revenue last year, Chief Executive Officer Robert Benmosche told shareholders this month...
BusinessWeek: AIG Increases Concentration of Storm Risk With Divestitures
AIG will be a “smaller and more focused company” after selling American Life Insurance Co. and AIA Group Ltd., divisions that produced more than a third of the firm’s insurance revenue last year, Chief Executive Officer Robert Benmosche told shareholders this month...
BusinessWeek: AIG Increases Concentration of Storm Risk With Divestitures
Axa fined $1.9m by NY State Insurance Department
New York State Insurance Superintendent James J Wrynn has announced that Axa Equitable Life Insurance Company has paid a $1.9m fine for violations including making inaccurate or incomplete disclosures to consumers buying replacement annuity contracts and life insurance policies...
Post Online: Axa fined $1.9m by NY State Insurance Department
Post Online: Axa fined $1.9m by NY State Insurance Department
Friday, March 26, 2010
A.M. Best negative on The Hartford
For the second time in a week, Wall Street ratings agenciesare raising concerns about the potential impact that volatile financial markets may have on Hartford Financial Services Group Inc.'s life insurance business.
A.M. Best Co. on Thursday affirmed its issuer credit rating of "bbb+'' for The Hartford, but noted its rating outlook is negative...
Hartford Business: A.M. Best negative on The Hartford
A.M. Best Co. on Thursday affirmed its issuer credit rating of "bbb+'' for The Hartford, but noted its rating outlook is negative...
Hartford Business: A.M. Best negative on The Hartford
What can the NFL draft teach us about personal finance?
Just like a GM preparing for the draft, always remember to expect the unexpected when investing.
Though it's still more than a month away, the National Football League draft is the nonstop talk of sports radio... Given my hometown team's position at the number two pick in this year's draft, speculation is at an all time high. Will they pick the best athlete overall, or the one in a position they most need? Will their first choice be available, or will he already have been taken by another team? There may also be strategizing and offers to trade down to a lower pick.
There are several parallels to personal finance in these speculative times that we can learn from the draft...
FiLife: What can the NFL draft teach us about personal finance?
Though it's still more than a month away, the National Football League draft is the nonstop talk of sports radio... Given my hometown team's position at the number two pick in this year's draft, speculation is at an all time high. Will they pick the best athlete overall, or the one in a position they most need? Will their first choice be available, or will he already have been taken by another team? There may also be strategizing and offers to trade down to a lower pick.
There are several parallels to personal finance in these speculative times that we can learn from the draft...
FiLife: What can the NFL draft teach us about personal finance?
Trillions in IRA funds could be forced into U.S. Treasury debt
A key labor union ally of the Obama administration has mounted an effort to create government-mandated worker retirement accounts as an entitlement program, with the possibility that a portion of all private retirement funds could be forced into U.S. Treasury debt.
"Retirement USA," the Service Employee International Union, or SEIU, has joined with the AFL-CIO, the Economic Policy Institute, a Washington-based economic left-leaning think tank that receives substantial labor funding and two other left-leaning interest groups, the Pension Rights Center and the National Committee to Preserve Social Security...
WND: Trillions in IRA funds could be forced into U.S. Treasury debt
"Retirement USA," the Service Employee International Union, or SEIU, has joined with the AFL-CIO, the Economic Policy Institute, a Washington-based economic left-leaning think tank that receives substantial labor funding and two other left-leaning interest groups, the Pension Rights Center and the National Committee to Preserve Social Security...
WND: Trillions in IRA funds could be forced into U.S. Treasury debt
Insurance Groups Blast Annuity Income Tax
Five insurance trade groups have joined to fight a section of H.R. 4872 -- the Patient Protection and Affordable Care Act “fixer bill” -- that would impose a 3.8% tax on annuities.
Drafters of H.R. 4872, the Reconciliation Act of 2010, want to use the revenue from the tax, which would apply to individuals with annual incomes over $200,000 and couples with annual incomes over $250,000, to help fund the Medicare program...
L&HN: Insurance Groups Blast Annuity Income Tax
Drafters of H.R. 4872, the Reconciliation Act of 2010, want to use the revenue from the tax, which would apply to individuals with annual incomes over $200,000 and couples with annual incomes over $250,000, to help fund the Medicare program...
L&HN: Insurance Groups Blast Annuity Income Tax
Take a Good College Insurance Package
For this particular reason, you need to gather a college insurance plan for the protection of your own healthcare. There are different sorts of insurance packages and it will vary from one college campus to another. You need to collect the current information and data about pros and cons of the college health insurance package before getting locked into the agreement or contract. One important
Thursday, March 25, 2010
Insurance swindler wants 845-year sentence reduced
Convicted life-insurance swindler Sholam Weiss has time on his hands — 845 years, a record for white-collar crime. Today in Atlanta his attorney appealed for his client to be resentenced in hopes of shaving off a little time — about 800 years worth.
The Associated Press tells the tale of the Scranton, Pa., man, who 10 years ago in Florida was convicted of stealing $125 million from customers of National Heritage Life Insurance Co. The Orlando firm collapsed in 1994 and nearly all 25,000 policy holders lost their life savings...
USA Today: Insurance swindler wants 845-year sentence reduced
The Associated Press tells the tale of the Scranton, Pa., man, who 10 years ago in Florida was convicted of stealing $125 million from customers of National Heritage Life Insurance Co. The Orlando firm collapsed in 1994 and nearly all 25,000 policy holders lost their life savings...
USA Today: Insurance swindler wants 845-year sentence reduced
Wednesday, March 24, 2010
Dodd bill calls for study — but not regulation — of financial planners
Among other things, GAO charged with examining professional standards that currently govern planners and advisers.
The financial services reform bill that the Senate Banking Committee approved yesterday calls for a study of the regulatory regime for financial planners. But the legislation does not call for the creation of an oversight board — something the Financial Planning Coalition had hoped for...
Investment News: Dodd bill calls for study — but not regulation — of financial planners
The financial services reform bill that the Senate Banking Committee approved yesterday calls for a study of the regulatory regime for financial planners. But the legislation does not call for the creation of an oversight board — something the Financial Planning Coalition had hoped for...
Investment News: Dodd bill calls for study — but not regulation — of financial planners
Insurers Get A Break In Financial Services Bill
Insurers have secured key changes in financial services reform legislation easing a proposed financial requirement for large firms and eliminating tighter regulation of financial product sales.
One revision to the bill reported out of the Senate Banking Committee yesterday means only one life and property and casualty insurer will be required to pay into a fund to finance a Resolution Authority for the liquidation or reorganization of huge financial services companies whose bankruptcy would pose a systemic risk to the economy...
P-C: Insurers Get A Break In Financial Services Bill
One revision to the bill reported out of the Senate Banking Committee yesterday means only one life and property and casualty insurer will be required to pay into a fund to finance a Resolution Authority for the liquidation or reorganization of huge financial services companies whose bankruptcy would pose a systemic risk to the economy...
P-C: Insurers Get A Break In Financial Services Bill
Banking Committee Passes Financial Reform Bill on Party-Line Vote
The Senate Banking Committee approved Monday, March 22 the financial services overhaul bill by a vote of 13-10 (13 Democrats and 10 Republicans). An expected week-long mark-up schedule was cut short when Republican committee members decided over the prior weekend against submitting any amendments to Senate Banking Committee Chairman Christopher Dodd’s bill...
Daily Caller: Banking Committee Passes Financial Reform Bill on Party-Line Vote
Daily Caller: Banking Committee Passes Financial Reform Bill on Party-Line Vote
Assessing the Future of ERM Technology
For years, insurance industry experts have talked about enterprise risk management (ERM) programs and their expected results. But all the talk seems to have fallen on deaf ears, as results from a recent survey reveal that even more attention needs to be paid to ERM.
CSC, the American Council of Life Insurers (ACLI) and Towers Watson teamed up to survey ACLI members—large and small life and annuity carriers—on risk management practices. The research centered on identifying and sharing life insurance industry ERM best practices, and ways technology can help those carriers improve processes and get a clearer view of overall risk exposure. The companies then compiled the results into a report, “Is Your Organization at Risk? A Different Look at Enterprise Management."
While half (53%) of the respondents have largely adopted ERM concepts, and begun the establishment of ERM programs with varying levels of activity over the last 12 months, they feel there is plenty of room for improvement, partly through the use of technology...
INN: Assessing the Future of ERM Technology
CSC, the American Council of Life Insurers (ACLI) and Towers Watson teamed up to survey ACLI members—large and small life and annuity carriers—on risk management practices. The research centered on identifying and sharing life insurance industry ERM best practices, and ways technology can help those carriers improve processes and get a clearer view of overall risk exposure. The companies then compiled the results into a report, “Is Your Organization at Risk? A Different Look at Enterprise Management."
While half (53%) of the respondents have largely adopted ERM concepts, and begun the establishment of ERM programs with varying levels of activity over the last 12 months, they feel there is plenty of room for improvement, partly through the use of technology...
INN: Assessing the Future of ERM Technology
Tuesday, March 23, 2010
Prudential’s Strangfeld Says Capital Use Is New Focus
Prudential Financial Inc.’s John Strangfeld, chief executive officer of the second-biggest U.S. life insurer, said he’s focusing on using capital raised last year when he needed a buffer against market declines.
“I am pleased to report that we are transitioning from a period of fortifying capital to the challenge of capital deployment,” Strangfeld said in a letter to shareholders posted today on the Newark, New Jersey-based company’s Web site...
Business Week: Prudential’s Strangfeld Says Capital Use Is New Focus
“I am pleased to report that we are transitioning from a period of fortifying capital to the challenge of capital deployment,” Strangfeld said in a letter to shareholders posted today on the Newark, New Jersey-based company’s Web site...
Business Week: Prudential’s Strangfeld Says Capital Use Is New Focus
Bank Rep Production Sputters in January
Despite advisors’ bullish prognostications, average production in Januardy fell 11% to $14,930 from a month earlier.
“January ended up being a dud,” said Scott Stathis, a managing director and chief operating officer of Kehrer-LIMRA, the firm that supplies the data for the Bank Insurance and Securities Association’s Monthly Productivity Benchmark report.
For the first time, Kehrer-LIMRA is now including fee income as well. Sales production including the fourth quarter’s fees, which paid out in January, was $25,359, up 5% from December’s average...
Bank Investment Consultant: Bank Rep Production Sputters in January
“January ended up being a dud,” said Scott Stathis, a managing director and chief operating officer of Kehrer-LIMRA, the firm that supplies the data for the Bank Insurance and Securities Association’s Monthly Productivity Benchmark report.
For the first time, Kehrer-LIMRA is now including fee income as well. Sales production including the fourth quarter’s fees, which paid out in January, was $25,359, up 5% from December’s average...
Bank Investment Consultant: Bank Rep Production Sputters in January
Insurers Decry Health Bill For Lack Of Cost Restrictions
Reacting to the health care legislation passed by the House, insurance and employer groups voiced deep concerns over what they see as a lack of provisions designed to reduce costs.
Meanwhile, a doctors group, Physicians for a National Health Program, described the bill as a measure that would leave to many persons uninsured and be an unwarranted bonanza for health insurers...
P-C: Insurers Decry Health Bill For Lack Of Cost Restrictions
Meanwhile, a doctors group, Physicians for a National Health Program, described the bill as a measure that would leave to many persons uninsured and be an unwarranted bonanza for health insurers...
P-C: Insurers Decry Health Bill For Lack Of Cost Restrictions
Florida agent loses licenses over alleged ‘free lunch’ annuity scheme
A Florida insurance agent lost his licenses to do business in the state after regulators say he participated in an annuity scheme generating more than $100,000 in commission for him and his agency.
Mitchell Brian Storfer, 49, allegedly lured seniors into bad annuity deals by offering free meals and dinner workshops at local Vero Beach, Fla., restaurants through is agency, Seniors Financial International Inc., according to the Florida Department of Financial Services...
IFA Web News: Florida agent loses licenses over alleged ‘free lunch’ annuity scheme
Mitchell Brian Storfer, 49, allegedly lured seniors into bad annuity deals by offering free meals and dinner workshops at local Vero Beach, Fla., restaurants through is agency, Seniors Financial International Inc., according to the Florida Department of Financial Services...
IFA Web News: Florida agent loses licenses over alleged ‘free lunch’ annuity scheme
Wall Street Must Put Clients First
What’s the most significant difference between a stock broker and an investment advisor?
The investment advisor pledges to put his or her client’s interests first. That would require full disclosure of all costs and commissions, as well as any potential conflicts of interest. It’s a standard set by the Investment Advisers Act of 1940 and affirmed by the Supreme Court.
But stock brokers are only required to “know the customer” and offer products that are “suitable...”
MoneyShow: Wall Street Must Put Clients First
The investment advisor pledges to put his or her client’s interests first. That would require full disclosure of all costs and commissions, as well as any potential conflicts of interest. It’s a standard set by the Investment Advisers Act of 1940 and affirmed by the Supreme Court.
But stock brokers are only required to “know the customer” and offer products that are “suitable...”
MoneyShow: Wall Street Must Put Clients First
Monday, March 22, 2010
Open VA platform at Ameriprise may be less than open
Axa, Lincoln, MetLife wholesalers will be personae non grata; cap on commissions planned
Ameriprise Financial Inc.'s plan to open its brokerage platform to outside variable annuities falls short of the open architecture favored by other independent broker-dealers.
The move, which is expected to occur by the end of the second quarter, is apparently aimed in part at boosting Ameriprise's ability to recruit independent-contractor registered representatives and financial advisers. Such advisers are often big sellers of variable annuities and consider the in-vestment options available to them carefully before changing firms...
Investment News: Open VA platform at Ameriprise may be less than open
Ameriprise Financial Inc.'s plan to open its brokerage platform to outside variable annuities falls short of the open architecture favored by other independent broker-dealers.
The move, which is expected to occur by the end of the second quarter, is apparently aimed in part at boosting Ameriprise's ability to recruit independent-contractor registered representatives and financial advisers. Such advisers are often big sellers of variable annuities and consider the in-vestment options available to them carefully before changing firms...
Investment News: Open VA platform at Ameriprise may be less than open
Jackson Annuity Sales Validate Strategy
By avoiding gimmicky riders, benefit reductions and higher prices, Jackson National Life Insurance Co. reported its best year for annuity sales through banks in 2009.
"We heard a lot of skepticism," said Jack Mirshler, the western divisional vice president for the Lansing, Mich., unit of Prudential PLC of London. "We remained committed to our long-term approach. We weren't going to go out and create some hot product that would last for three months or do some fire sale on products. None of that made sense for our customers. We never wanted to be a company that chased market share with frivolous riders."
Jackson reported last week that annuity sales in the bank channel increased 23.1%, to $2.45 billion as variable annuity sales through banks increased 72.9%, to $1.3 billion last year...
INN: Jackson Annuity Sales Validate Strategy
"We heard a lot of skepticism," said Jack Mirshler, the western divisional vice president for the Lansing, Mich., unit of Prudential PLC of London. "We remained committed to our long-term approach. We weren't going to go out and create some hot product that would last for three months or do some fire sale on products. None of that made sense for our customers. We never wanted to be a company that chased market share with frivolous riders."
Jackson reported last week that annuity sales in the bank channel increased 23.1%, to $2.45 billion as variable annuity sales through banks increased 72.9%, to $1.3 billion last year...
INN: Jackson Annuity Sales Validate Strategy
Revised amendment aims to heal breaches in advisor community
New oversight for financial planners may be tougher for Senators to vote against because it is seen as pro-consumer
In an attempt to diminish opposition to an amendment requiring financial planners to be regulated by a new oversight board, Sen. Herb Kohl, D-Wisc., has revised a proposal he plans to introduce when financial service reform legislation comes before the Senate Banking Committee next week.
The new version of Sen. Kohl’s “Financial Planners Act” draft legislation, released Thursday night, now stipulates that financial planners covered by a proposed Financial Planner Oversight Board are people who hold themselves out to the public as financial planners...
RIA Biz: Revised amendment aims to heal breaches in advisor community
In an attempt to diminish opposition to an amendment requiring financial planners to be regulated by a new oversight board, Sen. Herb Kohl, D-Wisc., has revised a proposal he plans to introduce when financial service reform legislation comes before the Senate Banking Committee next week.
The new version of Sen. Kohl’s “Financial Planners Act” draft legislation, released Thursday night, now stipulates that financial planners covered by a proposed Financial Planner Oversight Board are people who hold themselves out to the public as financial planners...
RIA Biz: Revised amendment aims to heal breaches in advisor community
Friday, March 19, 2010
Health Insurance For Tourists
Your current health insurance plan may leave you with expensive medical bills for injuries and illnesses that occur while traveling abroad due to network restrictions. If your plan doesn't cover incidents that occur internationally, then you'll want to be sure to purchase tourist insurance before departing.With insurance companies adding more restrictions to where and who policyholders can get
A Hot Job for Hard Times: The Life-Insurance Agent
One of the most old-fashioned occupations in finance is back in favor: the life-insurance agent.
Some big insurers are adding thousands of agents and planning to sign up more. They're taking advantage of the weak job market to scoop up former real-estate agents, mortgage brokers, bankers and lawyers whose prospects have declined.
New York Life Insurance Co. added 3,618 agents last year. Northwestern Mutual Life Insurance Co. signed up 2,340. In Texas, a start-up with big-name backers opened in January with 2,200 agents and plans to double the number in three years...
WSJ: A Hot Job for Hard Times: The Life-Insurance Agent
Some big insurers are adding thousands of agents and planning to sign up more. They're taking advantage of the weak job market to scoop up former real-estate agents, mortgage brokers, bankers and lawyers whose prospects have declined.
New York Life Insurance Co. added 3,618 agents last year. Northwestern Mutual Life Insurance Co. signed up 2,340. In Texas, a start-up with big-name backers opened in January with 2,200 agents and plans to double the number in three years...
WSJ: A Hot Job for Hard Times: The Life-Insurance Agent
Comerica Repays TARP; Hartford Sells $1.95b Stock
Regional bank Comerica Inc on Wednesday said it has repaid $2.25 billion of federal bailout money, while Hartford Financial Services Group Inc said it sold $1.95 billion of stock to help repay $3.4 billion of its bailout funds...
I&T: Comerica Repays TARP; Hartford Sells $1.95b Stock
I&T: Comerica Repays TARP; Hartford Sells $1.95b Stock
FIA Fly-In: More Than 150 Offices Visited
Participants in the fixed indexed annuity fly-in are probably visiting the offices of more than 50 senators and about 100 House members this week.
Blair O’Connor, legislative affairs committee chair at the National Association for Fixed Annuities, Milwaukee, and chairman of the new Independent Fixed Annuities Agents Council, Sterling Heights, gave that estimate in an interview today...
L&HN: FIA Fly-In: More Than 150 Offices Visited
Blair O’Connor, legislative affairs committee chair at the National Association for Fixed Annuities, Milwaukee, and chairman of the new Independent Fixed Annuities Agents Council, Sterling Heights, gave that estimate in an interview today...
L&HN: FIA Fly-In: More Than 150 Offices Visited
N.Y. agent arrested for grand larceny in alleged annuity scheme
A Queensbury, N.Y., insurance agent is accused of defrauding a couple by stealing money given to him for purchasing insurance policies... Joseph A. Marvullo, 60, a self-employed, independent insurance agent, was recently arrested and charged with grand larceny, according to the New York Attorney General’s Office.
Marvullo met several times at the home of a Fort Ann, N.Y., couple, who wished to purchase life insurance, disability insurance and annuity life insurance policies, according to officials. The agent represented to the couple that he could sell them annuities as investments, yielding a higher interest rate...
IFA Web News: N.Y. agent arrested for grand larceny in alleged annuity scheme
Marvullo met several times at the home of a Fort Ann, N.Y., couple, who wished to purchase life insurance, disability insurance and annuity life insurance policies, according to officials. The agent represented to the couple that he could sell them annuities as investments, yielding a higher interest rate...
IFA Web News: N.Y. agent arrested for grand larceny in alleged annuity scheme
Thursday, March 18, 2010
Advisors Seek Simpler Annuities, Education
The retirement guarantees provided by annuities are more important to investors than ever, advisors say, even as many advisors still avoid using them in clients' portfolios.
As a solution, some advisors say the insurance companies that offer annuities need to simplify their products, help educate investors and advisors and battle the perception that they are too costly.
In the wake of the recent downturn, which decimated some portfolios, investors understand the importance of annuities in a way they hadn't before...
FA Mag: Advisors Seek Simpler Annuities, Education
As a solution, some advisors say the insurance companies that offer annuities need to simplify their products, help educate investors and advisors and battle the perception that they are too costly.
In the wake of the recent downturn, which decimated some portfolios, investors understand the importance of annuities in a way they hadn't before...
FA Mag: Advisors Seek Simpler Annuities, Education
O.C. firm to settle Ponzi suit with SEC
An Orange County investment advisor and his firm agreed Wednesday to pay more than $100,000 to settle charges by the Securities and Exchange Commission that they placed clients into what turned out to be a Ponzi scheme run by disgraced Democratic fundraiser Norman Hsu.
The SEC alleged that Paul H. Heckler and his Tustin firm, Yosemite Capital Management, defrauded clients by conducting inadequate research before investing $3.25 million in a company that secretly fed clients into Hsu's Ponzi scheme...
LA Times: O.C. firm to settle Ponzi suit with SEC
The SEC alleged that Paul H. Heckler and his Tustin firm, Yosemite Capital Management, defrauded clients by conducting inadequate research before investing $3.25 million in a company that secretly fed clients into Hsu's Ponzi scheme...
LA Times: O.C. firm to settle Ponzi suit with SEC
Moody’s affirms The Hartford ratings
Moody’s believes uncertainty exists regarding the capital adequacy of the organisation's life insurance operation, both in terms of its investment portfolio and its variable annuity liabilities.
Moody's Investors Service has affirmed the credit ratings of The Hartford Financial Services Group, (senior debt rated Baa3) and its main operating subsidiaries following the company's announcement that it intends to repay the $3.4bn Troubled Asset Relief Programme (Tarp) fund...
Reactions: Moody’s affirms The Hartford ratings
Moody's Investors Service has affirmed the credit ratings of The Hartford Financial Services Group, (senior debt rated Baa3) and its main operating subsidiaries following the company's announcement that it intends to repay the $3.4bn Troubled Asset Relief Programme (Tarp) fund...
Reactions: Moody’s affirms The Hartford ratings
Dearborn National Rolls Out MYG Annuities
An annuity insurer is rolling out a new family of single-premium deferred multi-year guarantee annuities with an optional market value adjustment feature.
Issued by Fort Dearborn Life Insurance Company, Downers Grove, Ill., the Destination Fortifier Series offers MYG annuities in several interest rate durations with matching surrender charge schedules.
The series also has multiple liquidity options, one of which allows an annual withdrawal of up to 15% of account value after year one or immediate withdrawals of interest without incurring surrender charges, the Chicago company says...
L&HN: Dearborn National Rolls Out MYG Annuities
Issued by Fort Dearborn Life Insurance Company, Downers Grove, Ill., the Destination Fortifier Series offers MYG annuities in several interest rate durations with matching surrender charge schedules.
The series also has multiple liquidity options, one of which allows an annual withdrawal of up to 15% of account value after year one or immediate withdrawals of interest without incurring surrender charges, the Chicago company says...
L&HN: Dearborn National Rolls Out MYG Annuities
Study: Indexed Annuity Complaints Keep Dropping
Complaints about indexed annuities decreased by over 45% in 2009 compared to two years prior, according to a new study.
Advantage Compendium Ltd., St. Louis, reports that finding in a report on indexed annuity consumer complaints that were coded by the National Association of Insurance Commissioners, Kansas City, Mo.
In 2009, there was one complaint about indexed annuities for every $201 million of index annuity premium, say the researchers...
L&HN: Study: Indexed Annuity Complaints Keep Dropping
Advantage Compendium Ltd., St. Louis, reports that finding in a report on indexed annuity consumer complaints that were coded by the National Association of Insurance Commissioners, Kansas City, Mo.
In 2009, there was one complaint about indexed annuities for every $201 million of index annuity premium, say the researchers...
L&HN: Study: Indexed Annuity Complaints Keep Dropping
UK: Faster Pension Annuity transfers times promised
An increasing number of pension providers have been joining a scheme which ensures that waiting times for transfers is reduced. So far the scheme has seen transfer times drop by nearly one third. At the end of 2009 there were 16 insurers on board the “options” scheme, which equates to 94% of UK insurers, according to the Association of British Insurers (ABI). The initiative was launched early in 2009 and was designed to speed up annuity transfer times, which can be frustrating for annuitants and providers.
One case we noted saw one poor annuitant wait an exasperating two years for the funds to be transferred...
Annuity Rates (UK): Faster Pension Annuity transfers times promised
One case we noted saw one poor annuitant wait an exasperating two years for the funds to be transferred...
Annuity Rates (UK): Faster Pension Annuity transfers times promised
Wednesday, March 17, 2010
AIG Draws $2.2 Billion More From Treasury to Bolster Units
American International Group Inc., the insurer rescued by the U.S., drew $2.2 billion more from a Treasury Department facility to bolster property-casualty units that will be the core of a scaled-back company.
AIG used the cash to redeem securities held by insurance subsidiaries, improving liquidity and a measure of capital adequacy watched by rating firms and regulators, said Mark Herr, a spokesman for the New York-based firm. The company owes more than $70 billion on Federal Reserve and Treasury facilities...
Business Week: AIG Draws $2.2 Billion More From Treasury to Bolster Units
AIG used the cash to redeem securities held by insurance subsidiaries, improving liquidity and a measure of capital adequacy watched by rating firms and regulators, said Mark Herr, a spokesman for the New York-based firm. The company owes more than $70 billion on Federal Reserve and Treasury facilities...
Business Week: AIG Draws $2.2 Billion More From Treasury to Bolster Units
Ten Questions To Ask When Hiring A Financial Advisor
Do your homework before you hire someone to oversee your money. You and your advisor will both be happier in the long term...
Forbes: Ten Questions To Ask When Hiring A Financial Advisor
Forbes: Ten Questions To Ask When Hiring A Financial Advisor
Momentum for Annuities in 401(k)s Builds
More retirement think tanks are getting on board with the idea of including annuities in 401(k) plans, but so far, only a handful of large employers have this as an option... “They are complicated,” Alicia H. Munnell, director of the Center for Retirement Research at Boston College explains. “And [if] you hand over a bunch of your hard-earned cash and go out on the street and get hit by a bus, it’s gone.”
Further, investors are afraid an insurance carrier could go out of business, and plan sponsors don’t like the administrative headache of switching annuity investments when workers change jobs, added Robyn Credico, a consultant with Towers Watson...
Financial Planning: Momentum for Annuities in 401(k)s Builds
Further, investors are afraid an insurance carrier could go out of business, and plan sponsors don’t like the administrative headache of switching annuity investments when workers change jobs, added Robyn Credico, a consultant with Towers Watson...
Financial Planning: Momentum for Annuities in 401(k)s Builds
SEC Censures Gilman Ciocia for Annuity Sales to Seniors
The Securities and Exchange Commission has censured Gilman Ciocia and its Prime Capital Services unit for misrepresenting the variable annuities sold to senior citizens in South Florida.
In an order issued Tuesday, the SEC found that from approximately November 1999 through February 2007, PCS, a broker-dealer that Gilman Ciocia acquired in 1999, offered and sold variable annuities that were unsuitable investments for elderly customers due to the customers' ages, liquidity and investment objectives...
WebCPA: SEC Censures Gilman Ciocia for Annuity Sales to Seniors
In an order issued Tuesday, the SEC found that from approximately November 1999 through February 2007, PCS, a broker-dealer that Gilman Ciocia acquired in 1999, offered and sold variable annuities that were unsuitable investments for elderly customers due to the customers' ages, liquidity and investment objectives...
WebCPA: SEC Censures Gilman Ciocia for Annuity Sales to Seniors
Ameriprise surprise: Firm to open platform to outside annuity providers
In a bid to lure more independent reps, the B-D soon will allow advisers to sell VAs created by Axa, Lincoln National and MetLife
Breaking with its longtime strategy, Ameriprise Financial Inc. soon will open its brokerage platform to allow its 12,000 representatives and advisers to sell variable annuities from outside providers. Until now, Ameriprise has confined its reps to selling the firm's own proprietary VA investments.
While no timetable for the expansion has been set, a number of sources familiar with the plan said it's likely to occur by the end of the second quarter. Most Ameriprise advisers now are limited to selling variable annuities created by RiverSource Investments LLC, the company's proprietary mutual funds, annuities and other investment products...
Investment News: Ameriprise surprise: Firm to open platform to outside annuity providers
Breaking with its longtime strategy, Ameriprise Financial Inc. soon will open its brokerage platform to allow its 12,000 representatives and advisers to sell variable annuities from outside providers. Until now, Ameriprise has confined its reps to selling the firm's own proprietary VA investments.
While no timetable for the expansion has been set, a number of sources familiar with the plan said it's likely to occur by the end of the second quarter. Most Ameriprise advisers now are limited to selling variable annuities created by RiverSource Investments LLC, the company's proprietary mutual funds, annuities and other investment products...
Investment News: Ameriprise surprise: Firm to open platform to outside annuity providers
Tuesday, March 16, 2010
Fidelity Rolls Out New Service Model for Affiliated Advisors and B/D Reps
Centralized client service organization aimed at RIAs, B/Ds, family offices, and traders
Expanding on the positive reception advisors gave a pilot program launched last year, Fidelity Investments on March 15 announced the creation of a new client experience organization designed to meet the evolving demands of Fidelity’s advisor clients across the firm's different advisor businesses— Fidelity Institutional Wealth Services, National Financial, Fidelity Family Office Services, and Fidelity Capital Markets. The new organization will be headed by Maggie Serravalli, an executive VP who has overseen client experience for Fidelity’s Operations and Services Group since June 2007. In that role, she was responsible for the client management and client service teams of Fidelity’s brokerage business—two divisions she still maintains responsibility for in her new position...
Investment Advisor: Fidelity Rolls Out New Service Model for Affiliated Advisors and B/D Reps
Expanding on the positive reception advisors gave a pilot program launched last year, Fidelity Investments on March 15 announced the creation of a new client experience organization designed to meet the evolving demands of Fidelity’s advisor clients across the firm's different advisor businesses— Fidelity Institutional Wealth Services, National Financial, Fidelity Family Office Services, and Fidelity Capital Markets. The new organization will be headed by Maggie Serravalli, an executive VP who has overseen client experience for Fidelity’s Operations and Services Group since June 2007. In that role, she was responsible for the client management and client service teams of Fidelity’s brokerage business—two divisions she still maintains responsibility for in her new position...
Investment Advisor: Fidelity Rolls Out New Service Model for Affiliated Advisors and B/D Reps
Advisors and Broker Dealers Criticize Dodd's Reform Plan
In a highly anticipated move, Senate Banking Committee Chairman Christopher Dodd, introduced his financial regulatory reform bill with a key provision on the fiduciary standard taken out.
The decision by Dodd, D-Conn., which was expected, has frustrated investor groups who want the more stringent fiduciary standard to be applied to brokers as well as to financial planners who already abide by the rule...
Financial Planning:
The decision by Dodd, D-Conn., which was expected, has frustrated investor groups who want the more stringent fiduciary standard to be applied to brokers as well as to financial planners who already abide by the rule...
Financial Planning:
The 4-1-1 on 403(b) Plans
Millions of American workers save for their retirements in 401(k) and other qualified plans. However, employees of not-for-profit organizations are not eligible to use these plans, as they can only be used in the private sector. They must instead use an equivalent plan known as a 403(b) plan. These plans resemble 401(k) plans in many respects, but are specially designed for nonprofit entities. This article examines the basic characteristics of these plans and how they work...
SFgate: The 4-1-1 on 403(b) Plans
SFgate: The 4-1-1 on 403(b) Plans
Judge hears arguments in annuity case
Cranston lawyer Joseph Caramadre, who is accused of recruiting terminally ill patients to line his own pockets, wants lawsuits against him dismissed.
Two national insurance companies are suing Caramadre and several others, claiming they recruited terminally ill patients to sign up for annuities. The annuities are then owned by investors... There are death benefits in the annuities that guarantee investors all their money back when the patients die, plus interest...
TurnTo10: Judge hears arguments in annuity case
Two national insurance companies are suing Caramadre and several others, claiming they recruited terminally ill patients to sign up for annuities. The annuities are then owned by investors... There are death benefits in the annuities that guarantee investors all their money back when the patients die, plus interest...
TurnTo10: Judge hears arguments in annuity case
Annuities Offer Steady Income, Big Drawbacks
Insurers are pushing annuities as a way to protect investors from wild financial markets, but the products can be pricey and expose investors to inflation
Over the past two years, investors have been taken for a wild ride. Annuities offer a way off the roller coaster.
That, at least, is the marketing message of the insurance companies that offer an increasing array of annuity products. Independent financial advisers, however, warn that annuities are anything but a simple answer for investors in retirement...
Business Week: Annuities Offer Steady Income, Big Drawbacks
Over the past two years, investors have been taken for a wild ride. Annuities offer a way off the roller coaster.
That, at least, is the marketing message of the insurance companies that offer an increasing array of annuity products. Independent financial advisers, however, warn that annuities are anything but a simple answer for investors in retirement...
Business Week: Annuities Offer Steady Income, Big Drawbacks
Monday, March 15, 2010
BNY Mellon and CII launch online adviser RDR tools
BNY Mellon Asset Management has teamed up with the Chartered Insurance Institute (CII) to launch a series of teaching tools for advisers aimed at helping them meet their retail distribution review (RDR) obligations.
In collaboration with the CII, BNY Mellon Asset Management has launched a series of online modules aimed at helping advisers prepare for their exams...
FT Adviser: BNY Mellon and CII launch online adviser RDR tools
In collaboration with the CII, BNY Mellon Asset Management has launched a series of online modules aimed at helping advisers prepare for their exams...
FT Adviser: BNY Mellon and CII launch online adviser RDR tools
Do you need mortgage protection insurance?
Odds are if you're paying a mortgage, you've received offers for mortgage protection insurance. It comes in several forms, but it typically covers your mortgage if you lose your job or become disabled, or it pays off your mortgage when you die.
Would you benefit from mortgage protection insurance? Or is it just another way for your mortgage company to siphon extra money out of your wallet each month while protecting itself upon your death?
The answer depends on your health, financial situation and what you want to happen when you die...
Bankrate: Do you need mortgage protection insurance?
Would you benefit from mortgage protection insurance? Or is it just another way for your mortgage company to siphon extra money out of your wallet each month while protecting itself upon your death?
The answer depends on your health, financial situation and what you want to happen when you die...
Bankrate: Do you need mortgage protection insurance?
Finding Growth in Asia Insurance Market
Valuing future growth is always a challenge. If an industry is both growing and tightly regulated—the case with insurance in China and India— the task is even more difficult. American International Group Inc.'s two latest disposals in Asia provide insights for future valuations.
MetLife Inc. is paying 10 times operating profit to acquire American Life Insurance Co., or Alico, most of whose business—70% of earnings—is in Japan's slow-growing, saturated insurance market. Prudential PLC is buying AIG's American International Assurance Ltd. business at a multiple double that. The differential in multiples is the price of optimism about growth...
WSJ: Finding Growth in Asia Insurance Market
MetLife Inc. is paying 10 times operating profit to acquire American Life Insurance Co., or Alico, most of whose business—70% of earnings—is in Japan's slow-growing, saturated insurance market. Prudential PLC is buying AIG's American International Assurance Ltd. business at a multiple double that. The differential in multiples is the price of optimism about growth...
WSJ: Finding Growth in Asia Insurance Market
Friday, March 12, 2010
Phoenix Index Annuity Series Includes “Look Back” Options
A new series of three fixed indexed annuities includes two “look back” accounts, which provide annual credits on a weighted basis... Issued by PHL Variable Insurance Company, a unit of The Phoenix Companies Inc., Hartford (NYSE:PNX), the policies include the Phoenix Reflections Bonus 10, Phoenix Reflections 10, and Phoenix Reflections 7 contracts.
Each is a single-premium FIA with three optional guaranteed minimum withdrawal benefit riders, guaranteed principal protection, and a 10- or 7-year surrender charge schedule (depending on product)...
L&HIN: Phoenix Index Annuity Series Includes “Look Back” Options
Each is a single-premium FIA with three optional guaranteed minimum withdrawal benefit riders, guaranteed principal protection, and a 10- or 7-year surrender charge schedule (depending on product)...
L&HIN: Phoenix Index Annuity Series Includes “Look Back” Options
Planners Fight Back On Fiduciary Standard
Sen. Herbert Kohl has proposed a financial services bill amendment that would apply a fiduciary standard of care to all broker-dealers, registered investment advisors and financial planners who perform financial planning duties.
Kohl, D-Wis., chairman of the Senate Special Committee on Aging, would put all of those broker-dealers, RIAs and planners under the jurisdiction of a new Financial Planning Oversight Board.
The proposed amendment would affect “anybody who holds himself out to the public as a financial planner and provides, or offers to provide, directly to individuals advice with respect to the management of financial assets in not fewer than two areas of financial planning, including—investment planning, income tax planning, education planning, retirement planning, estate planning, and risk management,” according to the amendment text...
L&HIN: Planners Fight Back On Fiduciary Standard
Kohl, D-Wis., chairman of the Senate Special Committee on Aging, would put all of those broker-dealers, RIAs and planners under the jurisdiction of a new Financial Planning Oversight Board.
The proposed amendment would affect “anybody who holds himself out to the public as a financial planner and provides, or offers to provide, directly to individuals advice with respect to the management of financial assets in not fewer than two areas of financial planning, including—investment planning, income tax planning, education planning, retirement planning, estate planning, and risk management,” according to the amendment text...
L&HIN: Planners Fight Back On Fiduciary Standard
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