| Changes regarding RBC Choice Series 10 and 12 year fixed index annuities and Master Builder single premium deferred annuity in Texas |
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| View the PDF of this announcement here. |
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| Attention Producers Selling Annuities in Texas |
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| As you may already be aware, Texas passed a new law (Texas HB 1919) that goes into effect as of June 1, 2010. This law puts certain restrictions on the maximum maturity date an insurance company can use to compute surrender charges for annuity products. |
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| RBC Insurance is committed to providing our valued sales partners with quality and compliant annuities for customers in Texas. Be assured that work has already begun on modifications to our product portfolio to bring our 10-year annuities in line with Texas law for product sales in that state. Once approved for sale, producers and marketers will be notified immediately. |
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| As a result of the new law, RBC Insurance will no longer be accepting sales of the following annuities in Texas effective June 1, 2010: |
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- RBC Choice 10
- RBC Enhanced Choice 10
- RBC Enhanced Choice 12
- Master Builder
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| Note: RBC Enhanced Choice 8 is not affected by any changes in Texas. |
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| Business process for RBC Choice 10, RBC Enhanced Choice 10, RBC Enhanced Choice 12 and Master Builder effective immediately |
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- New and pending business must be issued by end of business day on Friday,
May 28, 2010. - Effective Wednesday, May 12, only new business paperwork received with cash will be accepted.
- New business paperwork for 1035 exchanges, IRA rollovers, IRA transfers and asset transfers WILL NOT be accepted or processed.
- Any business for Texas currently in house as of end of business on May 28 that cannot be issued will be returned to the producer. RBC Insurance Sales Desk personnel will begin contacting affected producers starting the week of May 10.
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| Thank you for your patience as we work through this issue that has not only affected RBC but many of your other carrier partners. If you have any questions or concerns, please contact the RBC Insurance Sales Desk at 888-262-8131. |
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