IA American Select Plus 5 Product Changes & Clarification

 

News Bulletin                                                       July 2010

Select Plus 5 Product Changes & Clarifications

Valued agents,   The following changes for Select Plus 5 will take effect for new business received on or after August 30, 2010 and are reflected in the attached Select Plus 5 Agent Guide:   · 2.25% credited rate, 1.75% guaranteed minimum interest rate · The application, initial premium, and any transfer premium 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. There will be no grace period for receipt of any additional requirements needed to complete the application package. · Gross commission on natural owner age 59 or over is reduced. Gross commission rates will decrease by 0.5% to 1.5% for issues ages 59 or over. All contracted agents will be sent a copy of their updated commission schedule. You may also contact your upline for this information. · First Year Premium Bonus on natural owner or annuitant age 61 or over reduced to 2%, also effective starting on or after August 30, 2010. Additional premiums made during the first 12 months will be paid the same bonus percentage given at issue.  · Proof of Retirement will be required take advantage of the Early Retirement Benefit (ERB 402) We will accept as proof of retirement a letter from your employer on letterhead stating your SSN, retirement date and years of full-time employment. We will also accept proof of application to the Teachers’ Pension Plan for a pension or a refund. In the event of ill health, a doctor’s statement and proof of application for refund or pension from the Teachers’ Pension Plan Board will be accepted as proof of retirement. Persons who cannot provide appropriate proof of retirement are not eligible to take advantage of the Early Withdrawal Charge/Surrender provision.   Select Plus 5 materials were recently revised to clarify contract provisions. Revisions include:   · Issue ages of 20-80 (Qualified) and 0-80 (Non-Qualified) applies to BOTH the natural owner and annuitant. Commissions are paid on the age of the owner. · Early withdrawal charge waiver & early annuitization benefit explanations were completely separated and further clarified – both endorsements clearly state for Qualified (Traditional IRA, 403B and 457) money only · Penalty-free withdrawals and RMD (required minimum distribution) clarification · Credited, renewal and minimum interest rate explanations further clarified · Additional premium deposits in the first year must be a minimum of $1,000 · Joint owner and joint annuitant not allowed · Policy automatically annuitizes at annuitant age 92   We have attached the revised agent guide for your review.  Revisions were also made to the consumer brochure, FAQ’s and product overview. These sales and marketing pieces can be downloaded or ordered from Agent Marketplace at www.iaamerican.com. Click on Resource Center and choose Forms and Brochures to download and print, or choose Supply Order to place an order with us, to receive newly printed materials   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?”   We appreciate the trust you place in us. Thank you for your business.

For questions or assistance, please click here to contact us. For your complete agent resource, go to Agent Marketplace located at www.iaamerican.com.

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