|
| ||||||||||||||||
|
| ||||||||||||||||
|
| ||||||||||||||||
| News Bulletin July 2010 | ||||||||||||||||
|
| ||||||||||||||||
| New Business Interest Rate Change | ||||||||||||||||
| Effective August 30, 2010 | ||||||||||||||||
| In response to overall market rate changes, we are reducing our credited interest rates for new life and annuity policies starting Monday, August 30. Life and annuity policies issued after August 27, 2010 will be credited the new interest rate. Why We Change Interest Rates The fluctuations in the economic marketplace continue to influence our decisions on how best to ensure successful long-term relationships with our agents and policyholders. The continued suppression of interest rates in the asset markets has caused the yield on our investment portfolio to decline. In order to best protect and maintain the margins needed to meet future financial obligations to our policyholders, it is sometimes necessary to decrease the interest rates credited to our products. With these changes, our goal is to continue to offer the personalized service, solid products, and competitive compensation you expect from us. We also look forward to responding accordingly when the asset market recovers and ultimately grows in the future. We appreciate the trust you place in us. Thank you for your business. Life Products – August 30, 2010 The new life credited interest rates are applicable to all new policies issued on and after August 30, 2010, and all in-force policies on their first policy month anniversary (monthly processing date) following the first policy year anniversary on or after August 30, 2010. The current interest rate will not change for in-force life policies within the first 12 months after the policy issue date. Guaranteed Current
Annuity Products – August 30, 2010 The application, initial premium, and any transfer from another institution/1035 exchange must all be received by end of business day on Friday, August 27, 2010, for the policy to get the August credited rate. The same exception applies to the interest rate caps for equity indexed annuities. Select Plus 5 SPDA Please note that we are also changing the guaranteed minimum interest rate for policies submitted and/or paid on or after August 30, 2010, as well as changing the first-year premium bonus for owners age 61 or over. Gross commission rates will decrease by 0.5% to 1.5% for issue ages 59 or over. Contact your upline for your commission schedule. A separate bulletin will follow with additional information with detailed clarifications to the Select Plus 5 marketing pieces. 2.25% credited rate 1.75% guaranteed minimum interest rate 5.00% first year premium bonus up to age 60 2.00% first year premium bonus for 61 or over Illustration software updates reflecting these changes will be available online for download beginning August 20th. Select “Yes” upon opening your software when prompted to “Check For Updates?” | ||||||||||||||||
|
| ||||||||||||||||
| For questions or assistance, please click here to contact us. For your complete agent resource, go to Agent Marketplace, located at www.iaamerican.com. | ||||||||||||||||
| To remove your name from our mailing list, please click here. 17550 N. Perimeter Drive, Suite 210, Scottsdale, AZ 85255-0131 TM Trademark of Industrial Alliance Insurance and Financial Services Inc. | ||||||||||||||||
| 2010.44-MM | ||||||||||||||||
Thursday, July 29, 2010
IA American - New Business Interest Rate Change
