We know you share our commitment to good sales practices when selling annuity products. An important regulatory requirement that must be followed is to recommend purchasing an annuity to a client only if there are reasonable grounds for believing the annuity is suitable.
We encourage you to familiarize yourself with the following information and key documents at the end of this section to better understand our program and help ensure that your clients' applications get processed as quickly as possible. These vital documents are also available on SalesLink®.
In selling annuity products, it is important that agents assist clients in determining which products are appropriate for their financial situation based on financial needs and objectives as disclosed by the client during the sales process. It is also very important that agents give clients the information necessary to make well-informed decisions relating to the purchase of an annuity. These two pillars of good sales conduct – understanding your customer’s needs and objectives and providing full disclosure - are not only requirements of the law, but they are also dictated by our company’s code of ethical conduct to ensure we are always acting in a manner consistent with our clients’ interests.
All applications submitted through the electronic platform are reviewed to determine whether they meet our minimum criteria. Generally, our minimum criteria include:
Applications not meeting these criteria will usually be declined. We purposely share the above criteria with you so you know in advance about our minimum standards and can use them in deciding whether an application should be submitted to our company.
Applications that meet these criteria may be put through an additional screen to determine whether the information on the Suitability Acknowledgement Form raises any other suitability concerns that may require follow up with you or your client.
If it is necessary for the company to decline an application because we do not find reasonable grounds to determine the recommendation was suitable, then you will be informed of our decision to decline the application to avoid any surprise and allow you to discuss the matter further with your client.
Keep in mind that our declination of an application for suitability reasons does not mean the recommendation was necessarily unsuitable. It only means the information supplied by you and your client, from the company’s perspective, does not adequately establish reasonable grounds for believing the annuity is suitable.
Please click on the links below for additional information: