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 Posted: Tue Feb 02, 2010 10:53 pm Post subject: Must I be a registered rep. to sell Equity Index UL policies |
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| I am a license agent in NY State and my client asked md about them, I need to know if I have to be securities licensed to sell this product. |
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adapw2
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Joined: 02 Feb 2010
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| Posted: Tue Feb 02, 2010 11:51 pm Post subject: |
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No. They are considered fixed contracts and all you need is a life insurance license. That being said- I never let any of my reps go anywhere near an equity-indexed product unless they had a securities license; the idea of placing someone in a situation that ties their growth to a stock market index without knowing about the securities stuff scares me.
If you were selling variable EIAs, you would need a life and securities license.
InsTeacher  |
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InsTeacher
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Location: Oregon, USA
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| Posted: Wed Feb 03, 2010 3:05 am Post subject: |
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Do your research, you'll soon learn that a fixed annuity will leave your client in a better position than an equity indexed annuity. I've tried for some time now to make sense of equity indexed annuities, and every time I come back to not a good idea.
I've asked many on this forum and others who appear to love these products to give me a reason to use them. I've asked critical questions. They've decided not to make the case. |
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BNTRS
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| Posted: Wed Feb 03, 2010 5:46 am Post subject: |
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yup. EIAs can be full of those fun potholes in life that you didn't see coming. Probably because the rep who sold it to you didn't have a clue as to the real potential issues with EIAs. Anything fundamentally tied to an index is, first and foremost, not for the uninitiated. Or stupid. Or gullible. Or "I saw you coming a mile away" kind of victim.
Can EIAs be any good? Sure, for the right person at the right time with the right terms. If the buyer doesn't understand par rates, spreads/margins and asset fees and the volatility of markets, etc. then there's a biiiiiig problem.
I've seen them work, and I've seen the dark side as well. All I can say is you better know what you're doing.
InsTeacher |
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InsTeacher
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Joined: 13 Aug 2007
Posts: 1343
Location: Oregon, USA
119.93 Dollars($)
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