Suitability Analysis for Annuity Sales or Exchanges
September 11, 2012 | Leave a Comment
Suitability Information
In recommending an annuity product to a prospective client, the representative must have reasonable grounds for believing that the recommendation is suitable for the consumer on the basis of the facts disclosed during the sales process. Prior to recommending a product for sale or exchange, the representative must make reasonable efforts to obtain and analyze several points of suitability information about the client, including but not limited to:
1. Age
2. Annual income
3. Financial situation and needs, including 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
12. Tax status
In Good Order Transaction (IGO)
September 11, 2012 | 1 Comment
When data is submitted for business processing, whether it is a new business application, drop ticket, post-issue transaction, or licensing agreement, the data must be complete and legible so that the data can then be consumed or processed. When all of the data and forms are accurate and complete upon submission, this is considered In Good Order. 100% In Good Order submissions increase speed to issuance and decrease cost of issuance.
When applications or forms are submitted with incomplete or bad data, it is termed as Not In Good Order (NIGO).
Today’s intelligent technology solutions help ensure producer efficiency through IGO e-applications (e-App) with single sign-on, reflexive questioning, visible required fields, e-signature and e-submission. These features combined with mobile technology enable producers to execute straight-through processing and speed policy issuance.
