IMOs Defend FIA Product Flexibility to Regulators
February 21, 2017 by Cyril Tuohy
Retaining the ability to change terms embedded in fixed indexed annuity contracts is critical to insurance companies to adjust to market changes, said a top executive of a major FIA seller.
Insurers and insurance marketing organizations (IMOs) have responded to regulators’ questions about why companies can change the terms of FIA contracts after the contracts have been issued.
The comments — 15 in all — were filed as part of the insurance industry’s response to a Department of Labor proposal granting IMOs an exemption to sell commission-based FIAs under the fiduciary rule.
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