1. business and industrial

FIELD
REFERENCE
MANUAL
American National Insurance Company
Independent Marketing Group
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For Agent Use Only; Not for Use with Consumers
1
IMG-11417
Welcome to American National Insurance Company!
We are pleased to provide you with the American National Insurance Company‘s Field Reference
Manual. This Manual has been developed by the Independent Marketing Group to assist you
with valuable information on the Company’s procedures as they pertain to:
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Completing an Application
Processing an Application
Contracting/Licensing Procedures
Commissions
Supplies
Compliance
Advertising
We feel confident this manual will be a useful tool in providing information that will enable you to
provide the best possible service to your clients.
Independent Marketing Group is a Division of American National Insurance Company. American National
Insurance Company, headquartered in Galveston, Texas is licensed to conduct business in all states
except New York. Business is conducted in New York by American National Life Insurance Company of
New York, headquartered in Glenmont, N.Y. Copyright © 2013 American National Insurance Company,
Galveston, Texas. Not all products and services are available in all states.
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For Agent Use Only; Not for Use with Consumers
Interactive Table of Contents
This table of contents is “clickable”. To skip to a section or
subsection, simply click on any of the titles below.
Section 1. New Business...................... 6
New Business - Annuities.................................. 6
How to fill out a fixed annuity application......... 6
Required Forms................................................ 6
Annuity Disclosure Forms............................ 6
Fraud Forms.................................................. 7
Direct Transfer Forms.................................... 7
Direct Rollovers................................................ 8
Non-Tax Qualified Transfers /
1035 Exchanges................................................ 9
Replacement Forms....................................... 10
Certificate of Delivery Forms.......................... 10
Rate Lock Procedures..................................... 10
Free Look Procedures..................................... 12
Loans.............................................................. 12
Suitability........................................................ 13
New York Suitability Forms............................. 14
Annuity Service.............................................. 15
The Service Request Form............................. 15
When to Use the Service Request Form........ 15
Completing the Service Request Form.......... 15
The IRA/TSA RMD Election Form................... 15
Waiver of Surrender Charges Procedure........ 15
Annuity Service Processing Time Lines.......... 17
Annuity Service Contact Information ............. 18
New Business - Life Insurance......................... 19
How to fill out a Life Application .................... 19
Conditional Receipt ........................................ 19
Premium Checks ........................................... 19
Replacements................................................. 20
Replacements NAIC States............................ 12
Statement of Policy on Internal
Replacements of Life
Insurance or Annuities.................................... 21
Underwriting Decisions.................................. 22
Issued As Applied For................................. 22
Cost Disclosure & Policy
Summary Forms......................................... 22
Policy Not Issued As Applied For (NIA)....... 23
Policy Issued - Not Delivered (NTO)............ 23
Policy Not Issued
(Declined, Postponed, Incomplete)............. 24
Beneficiary Designations................................ 24
Inspection Reports - Fair Credit
Reporting Act.................................................. 28
Three Basic Areas of Compliance................... 29
Forms to be utilized to Comply
with the Regulations....................................... 29
Life New Business Contact Information......... 30
Section 2: Underwriting......................... 31
Prior to Submitting the Life Application.......... 31
Review of the Life Application........................ 32
Name.......................................................... 32
Age............................................................. 32
Occupation................................................. 32
Amount, Plan and Benefits......................... 32
History of Rating or Declination.................. 32
Insurance in Force All Companies.............. 32
Family or Attending Physicians................... 32
Aviation and Avocations.............................. 32
Underwriting Children.................................... 33
Preferred Risk Underwriting........................... 33
Preferred Build Table....................................... 35
Medical Requirements................................... 36
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For Agent Use Only; Not for Use with Consumers
Basic Info and Requirements
IUL, ExecUL, PWL, Term Plans....................... 37
Basic Info and Requirements
VUL Plans....................................................... 38
Medical Evidence........................................... 39
Examinations ............................................. 39
Paramedical and Inspection Services......... 39
Examination by M.D................................... 40
Physical Measurement............................... 40
ECG and Stress ECG.................................. 40
Blood Profile............................................... 40
The Attending Physicians Statement.......... 40
APS Alternative........................................... 40
Questionnaires............................................... 41
Privacy Legislation.......................................... 41
The Privacy States...................................... 41
Financial Underwriting Guidelines.................. 42
Personal Coverage...................................... 42
Estate Protection........................................ 42
Juvenile Coverage...................................... 43
Charitable................................................... 43
Business Coverage..................................... 43
Stranger Owned Life Insurance.................. 43
Underwriting Contact Information.................. 44
Section 3: Illustration Practices..... 45
Life Insurance Illustration Practices................ 45
The Life Illustration NAIC
Model Regulation........................................... 46
Procedures for Compliance with NAIC Life
Illustration Model Regulation.......................... 46
NAIC Life Illustration Procedures
Questions and Answers................................. 47
Key Points to Follow When Preparing
and Providing Life Sales Illustrations.............. 50
Key Points to Follow When Presenting
an Illustration to a Client................................. 50
Section 4: Contracting/Licensing
& Commissions........................................ 52
Licensing Procedures..................................... 52
Independent Marketing Group,
Pre-Hiring Guidelines...................................... 52
Agent Responsibility....................................... 53
Effective the Date Paperwork is
mailed to the State......................................... 53
Simultaneous Submission States................... 54
Contracting Procedures.................................. 55
Fixed Contracts........................................... 55
Broker-Dealers............................................ 57
Registered Representatives....................... 58
Commissions.................................................. 59
Licensing, Contracts & Commission
Contact Information........................................ 59
Section 5: Supplies................................ 60
Ordering Supplies on the Web Site................ 60
Ordering Supplies on the Phone..................... 61
Section 6: Ethics...................................... 62
Business Conduct and Ethic Guidelines......... 62
American National and Market Conduct......... 62
Producer’s Code of Conduct........................... 63
Full Disclosure................................................ 63
Unfair Trade Practices..................................... 64
Misrepresentation.......................................... 64
Defamation/Disparaging Remarks.................. 65
Rebating......................................................... 65
Twisting.......................................................... 65
Churning......................................................... 65
Forgery........................................................... 65
Fair Competition............................................. 65
Unfair Competition......................................... 65
Unfair Trade Practices (Act)............................. 66
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For Agent Use Only; Not for Use with Consumers
Replacement.................................................. 66
Consumer Complaints.................................... 67
Non-compliance Market Conduct
Activities Guidelines....................................... 67
Sanctions Alternatives for Market
Conduct Violations.......................................... 68
Section 7: Compliance......................... 69
General Advertising Procedures..................... 69
Introduction................................................ 69
Advertising Defined.................................... 69
What Must be Reviewed............................ 69
Approvals.................................................... 70
The Approval Process................................. 70
Approval Time Line..................................... 71
Pre-Approved Ads........................................... 72
Use of Company Name and
Logo on Stationery..........................................74
Advertising Tips.............................................. 75
Suggested Disclaimers................................... 76
Phrases and Terms to Avoid............................ 77
State Specific Issues...................................... 79
Requirements for use of ANICO
segment or Division Name ............................ 81
Requirements for use of ANICO
New York segment or Division Name............. 81
Advertising Financial Ratings in
Marketing Materials........................................ 81
Advertising New York Financial
Ratings in Marketing Materials....................... 84
Advertising Guidelines for
Variable Product Advertising........................... 85
Guidelines For Ads That Will
Appear Nationally............................................ 86
Additional Guidelines For
Internet/Web Ads........................................... 86
Expiration Of Advertising Approvals............... 87
Guidelines for Reprinting Company
advertising Materials For Non-Variable
and Variable Products..................................... 88
Advertising Violations...................................... 88
Advertising Review of Concept
Sales Materials............................................... 88
Do Not Call Procedures.................................. 89
Anti-Money Laundering Compliance.............. 90
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For Agent Use Only; Not for Use with Consumers
Section One: New Business
New Business - Annuities
Since we have already addressed the New Business procedure, in regards to life products, in the
first part of this New Business section, we will now focus on specific aspects of the New Business
procedure involved in the issuance of annuities.
Agents should refer to the Virtual Forms Section of our Web site, www.img.anicoweb.com, for a full
list of state required forms.
How to fill out a Fixed Annuity Application
Agents should refer to the Quick Reference Section of our Web site, www.img.anicoweb.com, Form
How To fill out Annuity App form 10039. (ANY-10039 for New York)
The agent should examine the application thoroughly and become familiar with it before completing
the information. All questions should be asked and all answers recorded legibly, using black ink.
Dashes, ditto marks and crosses have no legal meaning and are not valid answers. All boxes should
be marked with Xs and not check marks. Those questions that do not apply should be left blank unless
instructions are given to write “none.” The agent has no right to change a signed application without
the applicant’s consent. The applicant must initial every alteration, erasure, correction or addition made
on the application. “White Out” is not acceptable on the application.
The agent must be licensed and appointed, according to applicable state regulations, with American
National Insurance Company before writing and submitting an application for annuity. Applications cannot
be dated prior to the agent’s license appointment effective date with the company. Any application that
is submitted from an agent, that is not appointed with the company, will be held in the Home Office
pending compliance with state licensing appointment requirements. If compliance requirements are
not met the policy will be incompleted. American National is not obligated to accept any business that
is not in compliance with state regulations. See Section 4, Licensing and Commissions for additional
information.
Required Forms
Annuity Disclosure Forms
• Annuity Disclosure - All applications for annuities must be accompanied by the appropriate disclosure
form assigned for that product. This disclosure form outlines the annuity’s current interest rate,
guarantee of principal, surrender penalties and death benefit. The signature(s) of the owner(s) and
agent are required.
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New Business - 6
• IRA Disclosure - When submitting annuity applications that are to be set up as IRA’s, the agent must
submit the signed IRA Disclosure Form generated from the illustration software or form # 4528.
Failure to submit the IRA Disclosure Form will result in delays of issue and commissions.
Fraud Forms
Several states require that fraud forms be completed at the time of application or policy delivery. Check Virtual Forms at our Web site, www.img.anicoweb.com, for applicable fraud forms. (Note: If a
form number is not listed for a particular state, a fraud form is not required by that state)
Direct Transfer Forms
A Direct Transfer is an IRS approved method of transferring funds from one institution to another as a
non-taxable event. It is applicable to Traditional IRAs, 403(b)s, SEP IRAs, ROTH IRAs, and 457 plans
held in annuities or mutual fund accounts. To transfer existing account(s) from another company to
American National, the agent must complete the following forms appropriate to the case he/she is
submitting:
Qualified Transfer or Rollover Request (Form # 4394-Q / Form # ANY-4394-Q for New York):
Completed and signed by the Owner and writing agent (agent’s Personal Code must be provided). A separate form must be submitted for each annuity or account being transferred.
Section 1 – Provide the replaced transfer company’s name, address, phone number and policy
number of the client. The owner and annuitant names should be completed as they are at their
company and should correlate the registration listed on the application.
Section 2 – Mark the appropriate section for a full or partial liquidation and whether the transfer will
be immediate, upon maturity, or annuitized.
Section 3 – This section is to be completed for Direct Transfers. Mark the tax status of the other
company as well as the tax status that will be opened with the new application. Since this information
should be the same in this section, only one box should be marked. Both the owner’s and agent’s
original signatures are required in this section.
Section 4 – This section will only be completed for Direct Rollover requests. Please see the Direct
Rollover portion of this document for further instructions.
Section 5 – Mark the appropriate box to show that a contract has either been included with the
transfer paperwork or if the client certifies that the contract has been lost or stolen.
Section 6 – This section provides RMD information about the transfer taking place.
Section 7 – Complete any special instructions deemed necessary for processing this request that
were not covered in the form.
Section 8 – Mark the appropriate department that the incoming funds should be mailed to. Do
not sign this portion of the paperwork. This signature will be completed at the Home Office by a
corporate officer.
Upon receipt of the completed forms, American National will complete the transaction by offering
acceptance of the funds from the existing institution. If all required forms are received and properly
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New Business - 7
completed, the transfer requests are processed and mailed to the other company within three (3) days.
For convenience, the agent can use Form # 4394-Q (Form # ANY-4394-Q for NY) for all qualified transfers.
Important Note: According to the Internal Revenue Service regarding 403(b) business, a completed Information Sharing
Agreement must accompany the application and request to transfer funds. If a new 403(b) Annuity application is submitted
on or after September 24, 2007 without the completed Information Sharing Agreement, American National will not request
funds from the other carrier until the Information Sharing Agreement is submitted and on record with the company.
Direct Rollovers
A Direct Rollover is an IRS approved method of transferring, tax free, any part of a taxable portion of
an eligible rollover distribution from a tax qualified pension plan under Section 401(a) or a Tax Shelter
Annuity under Section 403(b) to another qualified plan or annuity or an IRA. Currently, anyone who receives a distribution of funds from a qualified retirement plan (pension plan,
profit-sharing plan, 401(k), 403(b) or Keogh) will have 20% of the taxable amount mandatorily withheld. The new rule does not apply to IRAs and SEPs.
A participant receiving a distribution of funds from a qualified plan may effect a direct rollover of the
distribution directly to an IRA to avoid taxation or tax-withholding. Direct rollovers are processed and
mailed to the other company within 72 hours.
The agent should follow these requirements to complete the direct rollover:
Qualified Transfer or Rollover Request (Form # 4394-Q / Form # ANY-4394-Q for NY):
Completed and signed by the Owner and writing agent (agent’s Personal Code must be provided). A separate form must be submitted for each annuity or account being transferred.
Section 1 – Provide the replaced transfer company’s name, address, phone number and policy
number of the client. The owner and annuitant names should be completed as they are at their
company and should correlate the registration listed on the application.
Section 2 – Mark the appropriate section for a full or partial liquidation and whether the transfer will
be immediate, upon maturity, or annuitized.
Section 3 – This section will only be completed for Direct Transfer requests. Please see the Direct
Transfer portion of this document for further instructions.
Section 4 – This section will only be completed for Direct Rollover requests. Mark the top portion
according to the tax status of the funds at the other company. The next portion should be marked
showing the tax status that the funds will be rolling into. Both the owner’s and agent’s original
signatures are required in this section.
Section 5 – Mark the appropriate box to show that a contract has either been included with the
transfer paperwork or if the client certifies that the contract has been lost or stolen.
Section 6 – This section provides RMD information about the transfer taking place.
Section 7 – Complete any special instructions deemed necessary for processing this request that
were not covered in the form.
Section 8 – Mark the appropriate department that the incoming funds should be mailed to. Do
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New Business - 8
not sign this portion of the paperwork. This signature will be completed at the Home Office by a
corporate officer.
Important Note: According to the Internal Revenue Service regarding 403(b) business, a completed Information Sharing
Agreement must accompany the application and request to transfer funds. If a new 403(b) Annuity application is submitted
on or after September 24, 2007, without the completed Information Sharing Agreement, American National will not request
funds from the other carrier until the Information Sharing Agreement is submitted and on record with the company.
Special Requirement :
Qualified Retirement Plan - 401(a) Plan:
Direct rollover request forms must be obtained from the retirement plan sponsor. The agent should
complete the plan sponsor’s form and return it to the plan sponsor.
• Complete the Application for Annuity, the applicable annuity disclosure form and the IRA
disclosure form from the illustration software. The Premium Amount, on these forms, will be
completed by American National when the funds are received by the Home Office.
• A copy of all documents should be made and the originals forwarded to American National’s
Annuity Department in Springfield, MO.
• American National will then complete Section (10.) Acceptance of the Authorization to Transfer
Funds Form and mail it to the current qualified plan investment company. The policy will be
pended until the funds are received by American National.
• Once American National receives the funds, the policy will be issued and forwarded to the
agent for delivery to the client.
Non-Tax Qualified Transfers / 1035 Exchanges
A Section 1035[a] Exchange is an IRS approved method of transferring funds from one institution to
another as a non-taxable event. It is applicable to non-qualified annuities only.
All non-taxed qualified transfers should be requested by completing Non-Qualified 1035 Exchange
Request # 4394-NQ (Form # ANY-4394-NQ for NY). The information and signatures requested in
Sections (1.) Funds Coming From and (9.) must be completed in their entirety. To effect a Section
1035[a] Exchange, the life insurance policy or annuity contract must be absolutely assigned to American
National by the contract owner. The agent should complete the following on the authorization form:
Section 1 – Provide the replaced transfer company’s name, address, phone number and policy
number of the client. The owner and annuitant names should be completed as they are at their
company and should correlate the registration listed on the application.
Section 2 – Specify whether exchange should be processed immediately or upon maturity. The
next portion is marked to show if the funds will be sent as a 1035 Exchange from a Non-Qualified
policy or a Non-1035 Exchange of a Mutual Fund, Bank CD, or another Non-Qualified Asset. If a full
exchange is expected, the appropriate box should be marked. If a partial exchange is expected, the
appropriate box should be marked as well as a specific dollar amount or percentage of the partial
exchange.
Section 3 - Mark the appropriate box to show that a contract has either been included with the
exchange request or if the client certifies that the contract has been lost or stolen.
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New Business - 9
Section 4 - Complete any special instructions deemed necessary for processing this request that
were not covered in the form.
Section 5 - Original signatures of the owner, annuitant and agent are required in this section.
Section 6 - Mark the appropriate department that the incoming funds should be mailed to. Do
not sign this portion of the paperwork. This signature will be completed at the Home Office by a
corporate officer.
The agent must submit original contracts or certificates, if any, from the old account. If they are not
available, Section (3.) Contracts Statement should be checked.
American National will complete Section (10.) Acceptance authorizing the request for the cash surrender/
transfer of the specified funds.
Replacement Forms
Replacement forms vary by state. The agent should refer to the Virtual Forms Section of our web site.
New York agents, reference the Regulation 60 Presentation on our website.
Certificate of Delivery Forms
Certificate of Delivery receipts, are sent out with the annuity policy. The Certificate of Delivery receipt
is to be signed by the policy owner and returned for retention at American National’s Home Office. This
delivery receipt is a state requirement in: NY, CA, PA, WV and SD.
It is strongly recommended that the agent have a Certificate of Delivery signed and returned to the
Home Office for each policy issued. This certificate provides proof of the annuity policy delivery date
and establishes a start date for the Free Look Period.
LA allows the delivery receipt be maintained in the agent’s office.
Rate Lock Procedures
American National has rate lock provisions in place to allow our customers and agents’ time to secure
the best rates in effect as the interest rates change. American National issues fixed deferred, immediate,
and indexed deferred annuities upon receipt of all premium(s) and paperwork in good order. “Good
Order” means that all required forms are properly completed and signed and the agent is licensed and
appointed. Paperwork deemed to not be in good order will result in delays in the annuity being issued.
The effective date of a fixed deferred or immediate annuity will be the date the premium is received
at American National. If more than one premium is received, the effective date of the policy will be
the date the last premium is received. Indexed deferred annuities are issued at American National on
the 1st, 8th, 16th, and 24th of each month. In the event one of these dates falls on a weekend or an
American National holiday, the issue date will be the previous business day.
Cash with Application (“CWA”)
• To “lock-in” the previous month’s interest rate the application and check must be signed and dated
in the prior month and the application and check must be received within the first three business
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New Business - 10
days of the month. Applications received after the third business day of the month will receive the
then-current (“new money”) rates.
• To “lock-in” a quote for a single premium immediate annuity the application, illustration, and check
must be received within seven days from the date the illustration was prepared. Applications
received beyond the seventh day will receive annuity payments based upon current calculations in
effect on the date of issue.
Wires and Annuity Net
• To “lock-in” the previous month’s interest rate, the application must be signed and dated in the prior
month and the application and wire or DTCC extract must be received within the first four business
days of the month. Applications received after the fourth business day of the month will receive the
then-current (“new money”) rates.
• Wire Transfers in New York: To “lock-in” the previous month’s interest rate, the application and
Definition of Replacement form must be signed and dated in the prior month and the application,
Definition of Replacement form, and wire must be received within the first four business days of
the month. Applications received after the fourth business day of the month will receive the thencurrent (“new money”) rates.
1035 Exchange,Transfer, Rollover, or Transfer of Funds from Non-Insurance Accounts
to Non-Qualified Annuities
• A 60-day (90 days for New York) rate lock will apply to 1035 exchanges, transfers, rollovers, and
transfer of funds from non-insurance accounts to non-qualified annuities. The request may be
initiated by the agent, client, or American National.
• Transferred funds from non-qualified Non-Insurance funds which would qualify for the 60-day (90day for NY) rate lock include Mutual Fund Shares, Certificates of Deposit, Brokerage Accounts, or
any other financial institution funds. Non-qualified funds which would not qualify for the 60-day (90day - NY) rate lock include premium from a checking or savings accounts.
• The 60-day (90-day - NY) rate lock period begins on the date the application is signed.
• If multiple premiums are expected, the annuity will not be issued until all premiums have been
received. If the last premium is received after the expiry of the 60-day (90-day - NY) rate lock period,
the rate lock will not apply to any of the premium.
• On the date of issue, the contract will be credited with the higher rate in effect on the date
the application was signed or the then-current (“new money”) rate in effect on the issue date.
Premium(s) received after the expiry of the 60-day (90-day - NY) rate lock period will receive the
then-current (“new money”) rates in effect on the issue date. Rates that are in effect for any period
between the application date and the issue date are not considered.
The rate which American National Insurance Company will lock varies by product.
• Fixed Deferred Annuities - The rate lock date will be the date that produces the greater declared
accumulation interest rate. The annuity will be issued with the greater declared accumulation
interest rate in effect on the date the application was signed or on the date of issue.
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New Business - 11
• Single Premium Immediate Annuities - The rate lock will be based on the highest annuity payment
calculated on the date the application was signed or on the date of issue.
• ANICO Equity Indexed Annuity - The rate lock date will be the date that produces the greater
specified rate. The annuity will be issued with the greater specified rate in effect on the date the
application was signed or on the date of issue.
• Value Lock - The rate lock date will be the date that produces the greater premium enhancement.
The same rate lock date will be assigned to the participation rate. The annuity will be issued with
the greater premium enhancement in effect on the date the application was signed or on the date
of issue. Since the seven year Value Lock product does not have a premium enhancement, the
participation rate will be based on the date of issue.
• Strategy Indexed Annuity - The rate lock date will be the date that produces the greater Cap for
the equity fund. The same rate lock date will be assigned to the declared rate and participation rate.
The annuity will be issued with the greater Cap rate in effect on the date the application was signed
or on the date of issue.
The rate which American National Life Insurance Company of New York will lock
varies by product.
• Fixed Deferred Annuities – The rate lock date will be the date that produces the greater declared
accumulation interest rate. The annuity will be issued with the greater declared accumulation
interest rate in effect on the date the Definition of Replacement form was signed or on the date of
issue.
• Single Premium Immediate Annuities – The rate lock will be based on the highest annuity payment
calculated on the date the Definition of Replacement form was signed or on the date of issue.
Free Look Period
There is a 10 day (30 day in New York) Free Look Period from the date of the annuity contract delivery to
the client. Should a client wish to cancel his/her contract during this period of time, American National
will refund the entire premium. An annuity contract may be returned by the agent to American National
during the Free look Period for re-issue. The agent must give a written explanation detailing the reason
for re-issue and include any new forms that may be required as a result of the requested changes. Any
cancellation after the “Free Look Period” is considered full surrender.
Loans
Loans are not available on the non-qualified versions of the annuity.
Loans are not available on qualified versions of an annuity policy issued as an IRA. A loan from an IRA
causes the entire value of the IRA to be taxed in the current year.
Subject to employer plan approval and administration, annuity policies issued as TSA’s may have loans
in accordance with the policy provisions as described below:
Minimum loan is $2,500. Maximum loan is the lesser of 50% surrender value on the date of the
loan or $50,000. Interest is charged daily on the loan balance at a loan interest rate of 8% annually. Interest is charged in arrears. If interest is not paid when due, it becomes part of the loan. The annuity
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New Business - 12
terminates and has no value if debt equals or exceeds the surrender value. No partial surrenders will
be allowed if any debt is outstanding. The surrender value will be reduced by outstanding debt and
pro-rata interest, if any. A loan must be paid back in full on or before the fifth anniversary of the loan
effective date. Loans may be paid in a lump sum or in installments. Minimum loan repayment is $10.
Any loan balance after the fifth anniversary of the loan effective date will be deemed a distribution of
policy proceeds. The annuity purchase value will be reduced by the amount of such a balance. “Home
Loans” may be paid over a period of fifteen (15) years, with level installment payments made not less
frequently than quarterly.
Suitability
The Company requires the use of suitability forms in all states per the NAIC Suitability in Annuity
Transactions Model Regulation of 2010 (Model Regulation).
Reasonable Belief of Suitability - In recommending to a consumer the purchase of or the exchange
of an annuity, the producer shall have reasonable grounds for believing that the recommendation is
suitable on the basis of facts disclosed by the consumer as to their:
• Investments
• Other insurance products
• Financial situation and needs, including suitability information
The producer must have a reasonable basis to believe the following:
• The consumer has been informed of the various features of the annuity, including surrender period
and surrender charges, and fees and expenses
• The consumer would benefit from certain features of the annuity
• The annuity as a whole, or in the case of a replacement, the transaction as a whole is suitable for
the particular consumer based on his or her suitability information
• In the case of a replacement, the transaction is suitable taking into consideration whether the
consumer will incur a surrender charge, be subject to the commencement of a new surrender
period, lose existing benefits or be subject to increased fees (including charges for riders); whether
the consumer will benefit from the product enhancements and improvements of the new annuity
contract; and whether the consumer has had another annuity replacement within the preceding 36
months or 3 years (60 months or 5 years in California and Minnesota)
Reasonable Effort to Obtain Consumer Suitability Information - Prior to the purchase or exchange
of an annuity resulting from a recommendation an insurance producer must make reasonable efforts
to obtain the following consumer “Suitability Information”:
•
•
•
•
•
•
•
•
•
Age
Annual Income
Financial Situation and Needs (including the financial resources used for the funding of the annuity)
Financial Experience
Financial Objectives
Intended use of the annuity
Financial Time Horizon
Existing Assets (including investment and life insurance holdings)
Liquidity Needs
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New Business - 13
• Liquid Net Worth
• Risk Tolerance
• Tax Status
A recommendation is defined very broadly as advice provided by an agent that results in a purchase or
exchange of the proposed annuity.
Insurers are required to have a system of supervision to assure that recommendations made by agents
comply with the Model Regulation and/or specific state requirements.
To assist producers in performing a suitability assessment, American National requires a Suitability
Analysis Form (*form # 4465). This form must be submitted to the company with the application.
American National will not issue the policy or contract unless the signed form is submitted. This form
can be used to help gather additional information needed to make a suitability determination.
*Required forms may be state specific. Check our Web site, www.img.anicoweb.com for state form
requirements.
In order to comply with the system of supervision requirement, American National will conduct periodic
reviews of its agents. If an agent is selected for review, the agent will be expected to promptly reply.
New York Suitability Forms
The Company requires the use of suitability forms. Per the NAIC Senior Protection in Annuity Transactions
Model Regulation (Model Regulation), agents’ recommendations to purchase or exchange an annuity
must be based on information disclosed by the consumer as to his or her investments, other insurance
products, and financial situation and needs, and the agent should make reasonable efforts to obtain
additional information concerning the consumer’s:
1.
Financial Status
2.
Tax Status
3.
Investment Objectives
The agent is also required to obtain any other information used or considered reasonable by the
insurance producer in making recommendations to a consumer. A recommendation is defined very
broadly as advice provided by an agent that results in a purchase or exchange of the proposed annuity.
Insurers are required to have a system of supervision to assure that recommendations made by
agents comply with the Model Regulation and/or specific state requirements. As part of its system of
supervision, American National Life Insurance Company of New York provides a Suitability Analysis form
(form # ANY-4465), which is to be completed and signed at the time applications for affected products
are taken. This form must be submitted to the Company with the application. American National Life
Insurance Company of New York will not issue the contract unless the signed form is submitted.
In order to comply with the system of supervision requirement, American National Life Insurance
Company of New York will conduct periodic reviews of its agents. If an agent is selected for review, the
agent will be expected to promptly provide American National Life Insurance Company of New York
documentation verifying that the agent collected the necessary information to support a recommendation.
The Company’s Suitability Analysis form completed at the time of the recommendation, or similar
documentation, will be necessary to satisfy this requirement.
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New Business - 14
Annuity Service
The Service Request Form
In order to execute service requests, American National requires the use of Service Request Form
# 3575 (Form # ANY-3575 for New York). The use of this form ensures that sufficient information is
obtained and proper signatures secured in order to process service requests in a timely manner. Upon
receipt of the form at the American National Home Office, five business days should be allowed for a
service request to be processed.
When to Use the Service Request Form
This form is necessary for the annuitant or owner to execute the following transactions:
1. Change of Name
2. Change of Address
3. Change of Beneficiary
4. Change of Annuitant (only on contracts where the Death Benefit is not paid upon death of annuitant)
5. Absolute Assignment (Transfer of Ownership)
6. Statement of Loss or Destruction or Duplicate Contract Request
7. Systematic Income Request
8. Withholding instructions for Systematic withdrawals
9. Partial Withdrawals
Completing the Service Request Form
The agent should indicate the type of change requested and complete each item legibly. The policy
number and annuitant must be listed. In addition, the agent should secure the required signatures. In all
cases where joint owners are involved, both owners’ signatures are required (does not apply to contingent
owner). The signatures of two adult witnesses are required for any requests of change made to the
policy. When transferring ownership, the original contract should be returned to American National.
The IRA/TSA RMD Election Form
In order to execute an RMD request, American National requires that use of RMD Election Form #
4223 (ANY-4223 for NY). The use of this form ensures that sufficient information is obtained and
proper signatures are secured in order to process the RMD requests in a timely manner. This form
authorizes American National to automatically pay the client an annual withdrawal to satisfy IRS Required
Minimum Distribution requirements. Upon receipt of this form at the American National Home office,
five business days should be allowed for a RMD request to be processed.
Waiver of Surrender Charges Procedure
Many of our annuity products feature surrender charge waivers. The waivers vary by product and state
and may include confinement, disability, terminal illness, and involuntary unemployment. In these
situations, American National requires the policy owner(s) to submit proof of confinement, disability,
terminal illness, or involuntary unemployment as defined in the contract. Check waiver restrictions and
availability by logging onto the IMG Web site at www.img.anicoweb.com
Confinement
• Form 4152 (ANY-4152 for NY) – should be completed by the attending physician. The patient,
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New Business - 15
giving his/her physician authorization to release information regarding his/her medical condition,
should complete section 1. The physician should complete section 2.
• Form 4153 (ANY-4153 for NY) – should be completed by a representative from the facility. The
patient, giving his/her facility authorization to release information regarding his/her confinement,
should complete section 1. A facility representative should complete section 2.
• Form 4154 (ANY-4154 for NY) – should be completed by the policy owner. The owner should
completed section 1 to indicate the amount requested. If the contract is not fully surrendered
under the Confinement Waiver provision, any existing systematic income withdrawals will stop
for the remainder of the contract year. If the owner would like systematic income payments
to continue he/she should fill out section 2. The owner should elect an option in section 3
regarding federal withholding and sign the acknowledgement in section 4.
These forms should be forwarded to the Home Office for approval.
Disability
• Form 4152 (ANY-4152 for NY) – should be completed by the attending physician. The patient,
giving his/her physician authorization to release information regarding his/her medical condition,
should complete section 1. The physician should complete section 2.
• Form 4154 (ANY-4154 for NY) – should be completed by the policy owner. The owner should
complete section 1 to indicate the amount requested. If the contract is not fully surrendered
under the Confinement Waiver provision, any existing systematic income withdrawals will stop
for the remainder of the contract year. If the owner would like systematic income payments
to continue, he/she should fill out section 2. The owner should elect an option in section 3
regarding federal withholding and sign the acknowledgement in section 4.
These Forms should be forwarded to the Home Office for approval.
Terminal Illness
• Form 4152 (ANY-4152 for NY) – should be completed by the attending physician. The patient,
giving his/her physician authorization to release information regarding his/her medical condition,
should complete section 1. The physician should complete section 2.
• Form 4154 (ANY-4154 for NY) – should be completed by the policy owner. The owner should
complete section 1 to indicate the amount requested. If the contract is not fully surrendered
under the Confinement Waiver provision, any existing systematic income withdrawals will stop
for the remainder of the contract year. If the owner would like systematic income payments
to continue he/she should fill out section 2. The owner should elect an option in section 3
regarding federal withholding and sign the acknowledgement in section 4.
These forms should be forwarded to the Home Office for approval.
Involuntary Unemployment
• The owner should submit a written request indicating that he/she would like to request a
withdrawal without penalty under this waiver. Within the text of the letter he/she should indicate
the date that he/she became unemployed. The owner should include a letter from the State
Department of Labor.
This letter should be forwarded to the Home Office for approval of the request.
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New Business - 16
Annuity Service - Processing Time-Lines
New Business Issue
A clean application accompanied with funds will be processed within three (3) business days after
receipt at American National’s Annuity Service Division.
Transfers and Exchanges
Our transfer team will handle all transfers. The team will mail all transfer paperwork via 2-day shipping
through UPS. The first follow-up call is scheduled for 5 business days after the paperwork is mailed. Afterwards a follow-up call is scheduled every 5 business days until the funds are received.
Systematic Withdrawals
• New Accounts - A check will be issued by American National thirty (30) days from the policy issue
date. Interest must accrue for 90 days for quarterly, 180 days for semi-annual and 360 days for
annual. For withdrawals of fixed amounts, a check will be issued by American National within 3 to
5 business days from the policy issue date. For withdrawals of interest only, a check will be issued
30 days from the policy issue date subject to the minimums.
• Existing Accounts - The request is processed within three (3) to five (5) business days after receipt
in the Annuity Services Division. A check is cut at the end of the month, quarter, semi-annual or
annual period as requested.
Note: Minimum amount required to generate a disbursement for the direct deposit option is $50.00.
The minimum amount required to generate a disbursement for a physical check is $100.00. If the
minimum requirements are not met, the disbursement will be withheld until such minimums are
obtained.
Partial Withdrawals
A check is generally mailed within three (3) to five (5) business days after a properly completed Service
Request Form, Form # 3575 (ANY-3575 for NY), is received.
Note: For all paper check disbursements please allow 5 to 7 days from check date for delivery.
Service Requests
Change of name, change of address, change of beneficiary, lost policy and absolute assignment are
completed within three (3) to five (5) days after a properly completed Service Request Form, Form
#3575, is received.
Death Claims
Death claims require the completion of Form # 3743 (ANY-3743 for NY), Request for Payment of Annuity
Insurance Benefits, accompanied by a copy of the deceased’s death certificate. Depending upon the
settlement option selected, payment is processed within five (5) business days.
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New Business - 17
Annuity Service Business Information
The following addresses should be used for new annuity applications and supporting documentation:
American National Insurance Company:
P.O. Box For Fed-Ex/Overnight Mail
American National Insurance Company
Attn: Annuity Services
P.O. Box 10427
Springfield, MO 65808-0427
American National Insurance Company
Mail Processing Center
Attn: Annuity Services 10427
1949 E. Sunshine St
Springfield, MO 65899-0427
Toll Free Phone Numbers
Fixed Annuity Products Phone- 1-800-252-9546
Fax: 409-766-2022
Variable Annuity Products Phone - 1-800-306-2959
Fax 409-766-2021
American National Life Insurance Company of New York:
P.O. Box For Fed-Ex/Overnight Mail
Annuity Services – New York Unit
Administrative Office
P.O. Box 1890
Galveston, TX 77553
Annuity Services – New York Unit
Administrative Office
One Moody Plaza
Galveston, TX 77550
Toll Free Phone Numbers
Annuity Customer Services
Phone- 1-866-490-3163
Regulation 60 Unit Phone - 1-877-540-5657
Fax: 281-535-4623
Apps cannot be faxed.
Fax 409-766-2021
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New Business - 18
New Business - Life Insurance
In the first part of the New Business section of this manual we will cover specific aspects of the New
Business procedure involved in the issuance of Life and Variable Life Products. We will address New
Business procedures for Annuities separately.
Agents should refer to the Virtual Forms Section of our Web site, www.img.anicoweb.com, for a full
list of state required forms.
How to fill out a Life Application
Agents should refer to the Quick Reference Section of our Web site, www.img.anicoweb.com, Form
How to Fill out Life App form 10193.
The agent should examine the application thoroughly and become familiar with it before completing
the information. All questions should be asked and all answers recorded completely and legibly, using
black ink. Dashes, ditto marks and crosses have no legal meaning and are not valid answers. All boxes
should be marked with Xs and not check marks. Those questions that do not apply should be left blank
unless instructions are given to write “none.” The agent has no right to change a signed application
without the applicant consent. Therefore, every alteration, erasure, correction or addition made on the
application must be initialed by the applicant. “White Out” is not acceptable on the application.
The agent must be licensed and appointed, according to applicable state regulations, with American
National Insurance Company before writing and submitting an application. Applications cannot be
dated prior to the agent’s license appointment effective date with the company. Any application
submitted from an agent that is not appointed with the company will be held in the Home Office
pending compliance with state licensing appointment requirements. If state licensing appointment
requirements are not met, the application will be incompleted. American National is not obligated to
accept any business that is not in compliance with state regulations. See Section 4, Licensing and
Commissions for additional information.
Conditional Receipt
The Conditional Receipt is a part of the application for life insurance. It should be detached from
the application when the initial premium is collected at the time of application. When the client
completes this part of the application, he/she has insurance coverage during the underwriting process. The receipt states conditions under which coverage takes effect, when temporary coverage ceases,
and the responsibilities of the writing agent for refunding money when the policy cannot be issued.
Conditional receipts cannot be issued if policy applied for is using the simplified issue life application.
Premium Checks
All premium payments/checks must be paid by the client and must be made payable to American
National Insurance Company.
Replacements
American National Insurance Company Statement of Policy Regarding Replacements
“Agents should not advise, suggest or recommend that an existing life insurance policy or annuity
contract be replaced unless it is in the interest of the customer.”
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New Business - 19
“Replacement” means any transaction in which new Life Insurance or a new Annuity is to be purchased,
and it is known or should be known to the proposing agent or broker, that by reason of such transaction,
existing Life Insurance or Annuity has been or is to be:
• Lapsed, forfeited, surrendered or otherwise terminated;
• Converted to reduced paid-up insurance, continued as extended term insurance or otherwise
reduced in value by the use of nonforfeiture benefits or other policy values;
• Amended so as to effect either a reduction in benefits or the term for which coverage would
otherwise remain in force or for which benefits would be paid;
• Reissued with any reduction in cash value; or
• Pledged as collateral or subjected to borrowing, whether in a single loan or under a schedule
of borrowing over a period of time for amounts in the aggregate exceeding twenty-five percent
(25%) of the loan value set forth in the policy.
All existing, pending or to be replaced Life Insurance must be listed on the application. If insurance is
being replaced, the agent must follow the replacement procedures required by the applicable state
laws. In most states, the required procedure is as follows:
• The agent must indicate the full name of the company being replaced. This information is not only
important for the company’s records, but this information is needed in order to notify the replaced
company. In addition, the agent should note the policy number of the insurance being replaced.
This will assist the replaced company in processing the surrender of the existing policy.
• A “Notice Regarding Replacement of Life Insurance” must be signed in duplicate by the applicant
and a copy left with the applicant.
• If required by the state, a Comparative Information Form must be signed by the agent no later than
the time of application. The agent must complete both sides of the form, including all information
regarding the existing policy which can be obtained from the policy itself. A separate form is
needed for each policy to be replaced.
• Copies of the above must be submitted to the Home Office with the application.
Replacements NAIC States
Replacement Procedures for those States who have adopted the NAIC Replacement Regulation.
States include: AL, AK, AZ, CO, HI, IA, KY, LA, MD, ME, MS, MT, NE, NH, NJ, NM, NC, OH, OR, RI,
SC, TX, UT, VT, VA, WA, WV, WI:
When the application has a question regarding existing coverage:
1. When no replacement or financed purchase of life insurance or annuities is involved, and the client
has no existing coverage, complete the application as usual (including the replacement question).
2. When no replacement or financed purchase of life insurance or annuities is involved, but the
client has existing coverage, completing the question on the application will not be sufficient. The
replacement form is required and questions must be answered at the top and bottom of page 1 and
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New Business - 20
signatures must be obtained. The agent is to offer to read the entire form aloud to the client and to
obtain the client’s initials in those situations where reading aloud is not desired. A copy should be
left with the client and copy of page 1 should be submitted with the application.
3. When replacement or financed purchase of life insurance or annuities is involved, the replacement
form, completed in its entirety, is required. A copy should be left with the client and a copy should
be submitted with the application.
When the application does not have a question regarding existing coverage the replacement
form is required:
1. When no replacement or financed purchase of life insurance or annuities is involved and the client
has no existing coverage, complete the top of page 1 of the replacement form, provide a copy to
the client and submit a copy with the application.
2. When no replacement or financed purchase of life insurance or annuities is involved, but the
client has existing coverage, completing the question on the application will not be sufficient. The
questions must be answered at the top and bottom of page 1 and signatures must be obtained.
The agent is to offer to read the entire form aloud to the client and to obtain the client’s initials in
those situations where reading aloud is not desired. A copy should be left with the client and copy
of page 1 should be submitted with the application.
3. When replacement or financed purchase of life insurance or annuities is involved, the replacement
form, completed in its entirety, is required. A copy should be left with the client and a copy should
be submitted with the application.
Statement of Policy On Internal Replacements of Life Insurance Or Annuities
The replacement of an existing American National life insurance policy or annuity contract with another
American National life insurance policy or annuity contract should not be undertaken unless there is
reasonable basis for the belief that the replacement transaction will result in substantial benefit to the
policy or contract holder. In processing applications for internal replacements, the following rules will
apply:
• The application for the new policy or contract must clearly reflect the fact that an existing American
National policy or contract will be replaced. (For the purpose of these rules, a replacement is defined
as a situation in which policy values in an existing life insurance policy or annuity contract, including
but not limited to cash values, loan values or dividend values, are utilized to purchase another
insurance policy or annuity contract.)
• The appropriate notice of replacement form, if required, must be fully and accurately completed.
One copy must be left with the applicant, and a second copy must be submitted to the home office
with the application.
• During the processing of the application, telephone calls to the writing agent and /or the policyholder
may be made if the replacement form is incorrect or the proper information is not included.
• Surrender charges under the existing contract, if any, will be waived. However, surrender charges
under the new contract, if any, will not be adjusted. The cash or other values rolled into the new
contract will not be subject to premium loads, but will be charged for any applicable state or local
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New Business - 21
premium taxes. The cash or other values will be subject to first-year interest crediting. All new
term policies will be subject to underwriting and new contestable periods. New permanent policies
may be subject to underwriting and new contestable periods will apply if there is an increase in the
amount of coverage, a new benefit, a change in the premium rating classification or a change in
reinsurance coverage for the new policy.
• Internal company replacements will not be permitted without a first-year commission and production
credit adjustment. Commissions and production credit will be adjusted if the paid-to-date of the
replaced (old) policy and the replacement (new) policy’s application date is within 12 months of
each of other. Commissions will not be paid on the cash or other policy values that are used to
fund the new contract. If the target premium under the new contract is greater than the target
premium under the existing policy, a first-year commission will be paid on the increase only. If
the target premium under the new contract is equal to or less than the target premium under the
existing policy, no first-year commission will be paid. Renewal commissions will be paid on all new
contracts.
• Routines have been established within the home office to audit new policies issued with terminating
policies to determine if replacements have occurred without the proper acknowledgments on
the applications. In addition, Department of Insurance and other complaint files are reviewed for
indications of replacement activity. Where an undisclosed replacement is discovered, commissions
will be adjusted. In addition, the withholding of information concerning a replacement may result
in the termination of the agent’s contract with American National.
• Certain replacement transactions will not be processed or will be subject to additional restrictions. Values from an American National annuity contract may not be exchanged for an American National
life insurance policy. The replacement of policies written by agents for one marketing area with
policies written by agents for another marketing area, i.e., replacing policies written by Multi-Line
agents with policies written by IMG agents (or vice-versa), while permitted, is discouraged. When
such replacements do occur, no commissions, first-year or renewal will be paid, and no production
credit will be allowed.
Underwriting Decisions
If a policy is issued as applied for/or issued with outstanding requirements, the agent will receive the
following:
Issued as Applied For
• The Life Insurance Policy and Summary
• A letter listing COD/ Cash Shortage, if additional premium is needed to complete the initial premium
required
• A Delivery Receipt
Cost Disclosure and Policy Summary Forms
Most states have regulations which require the agent to provide cost disclosure information to the
proposed insured at the time of solicitation or delivery of policies for life insurance. Most state
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New Business - 22
regulations require all applicants for life insurance be furnished with a Buyer’s Guide and a Policy
Summary prior to accepting an initial premium, unless the policy for which the application is made
contains an unconditional refund provision of at least ten days, in which event, the Buyer’s Guide and
Policy Summary must be delivered with the policy. However, if requested, the agent must furnish a
Buyer’s Guide and Policy Summary to the proposed insured upon earlier request. Please refer to the
Virtual Forms Section of the IMG Web site, www.img.anicoweb.com for state forms requirements.
Policy Not issued as Applied For (NIA)
NIA Form
If a policy is not issued as applied for (NIA), the policy will be sent with two NIA Forms attached. These forms are to be signed by the applicant as acknowledgment that the policy is accepted with
modifications and that there has been no change in health. The policy will be effective the later of
the date the NIA Form was signed or the effective date on the schedule page. Premiums will still be
due from the issue date stated on the Policy Data page regardless of when the NIA was signed. One
copy remains with the applicant; one is returned to the Home Office. If an owner is involved, both the
Proposed Insured (if age 16 and up) and the owner must sign the NIA form.
The agent should be certain that both the original and duplicate forms are signed. The form must be
properly signed by the applicant for insurance. If a joint policy is issued NIA, both applicants must sign
the NIA Form. Completed NIA Forms should be sent to the Life New Business Department within a
45 day delivery period.
Collecting Balance of Premium
If additional premium is needed to complete the initial premium, it must be collected and submitted
with the signed NIA Form.
NIA Policies Not Accepted
If the applicant does not accept the NIA policy, the reverse side of the NIA should be completed by
the agent, showing that the policy was not accepted and requesting the Home Office to refund the
application deposit. The agent should return the NIA form, the Policy Data Schedule page, and the copy
of the application from the policy to Life New Business. A check from the Home Office will be issued
to the applicant for the full amount of the deposit.
Policy Issued - Not Delivered (NTO)
Policies not delivered and paid for within the delivery period must be returned without delay for
cancellation. Otherwise, a letter of cancellation will be sent to the applicant stating that the policy is
null and void. A copy of this letter will be mailed to the agent.
The agent should send a memo requesting the policy be NTO’d, along with the Policy Data Schedule
page of the policy, to the appropriate method of pay department as follows:
• Direct pay & Pre-authorized pay cases (PAC) - to Life New Business.
• Payroll Deduction & Government Allotment - to Salary Deduction in Life Insurance Services. Click to Return to Table of Contents
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New Business - 23
Policy Not Issued (Declined, Postponed, Incomplete)
The Life Underwriting Department will mail a letter to the applicant when an application has been
Declined, Postponed or filed Incomplete. The agent will receive a copy of the letter.
Incomplete
On an Incomplete application, the client letter will be mailed a few days after the agent’s copy. The
letter will indicate the reason for the Incomplete. If the initial premium was sent with the Incomplete
application, the full amount of the CWA will be sent to the agent for delivery to the client. The check
must be delivered to the applicant immediately.
Declined, Postponed
When an application has been Declined or Postponed, the client will receive a letter with the reason for
the action. If the initial premium was sent with the Declined or Postponed application, the full amount
of the CWA will be refunded by a check immediately issued from the Home Office.
Under no circumstances may a refund check be returned to the Home Office for reversal and application
of the proceeds to be applied as CWA on a rewritten or reopened application that has been previously
Declined, filed Incomplete or Postponed.
Alternate and Additional Policies
An additional policy is issued when the applicant desires two different types of plans or face amount,
but only one application is used. Both policies can be placed. An alternate policy is issued when
the insured wants to choose between two types of plans or face amounts. Only one policy may be
placed. Both alternate and additional policies will be issued NIA. Premium can be submitted with an
application that has an “additional,” if the combined face amount is not over $500,000. No premium
should be submitted with an alternate application.
To place an alternate or additional policy, the agent should remit the amount of initial premium to the
appropriate method of pay department in Life New Business along with the signed NIA Form. In the
case of alternate policies, the policy not accepted must be returned for cancellation.
Alternate Policies are not intended to replace illustrations and should be avoided. The agent’s
illustration software should be utilized for comparisons.
Beneficiary Designations
We are providing specimen wording for typical beneficiary appointments on the following pages.
However, there are some issues to consider in naming or defining the beneficiary:
If two or more beneficiaries have been designated, and it is not mentioned how the proceeds are to be
shared, it is assumed that it will be in equal shares.
You will note that the following designations all show wording as “equally or to survivors” when two or
more beneficiaries are named. This is the preferred wording.
If the words “or to survivors” are included and one beneficiary dies, his/her share will automatically
revert to the other named beneficiaries in equal shares. If the words “or to survivors” are omitted and
one beneficiary dies, his/her share will revert to the estate of the insured in accordance with the terms
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New Business - 24
of the policy. The important point is for the agent and applicant to understand the significance of the
designated made.
If the applicant wishes to name more than one beneficiary with the proceeds payable other than
in equal shares, then the shares are to be indicated in whole percentage amounts. Specific dollar
amounts are not to be used because the amount payable may vary due to dividends payable at death,
or indebtedness under the policy, etc. Examples of this type of nomination are as follows:
3/4 to Mary E. Doe, wife, if living, otherwise to John J. Doe, father
1/4 to John Doe, father, if living, otherwise to Mary E. Doe, wife
From time to time beneficiary designations are submitted in which the beneficiaries are as:
• Mary E. Doe, mother
• John J. Doe, father
• William F. Doe, brother
This style of designation is unsatisfactory as there is no clear indication whether the intent is to name
three primary beneficiaries in equal shares, or whether the intent is to name one primary beneficiary
with two succeeding contingent beneficiaries.
The examples below indicate how both of these situations should be handled:
• Mary E. Doe, mother, and John J. Doe, father and William F. Doe, brother, equally or to survivors
• Mary E. Doe, mother, if living, otherwise to John J. Doe, father, if living, otherwise to William F.
Doe, brother
• Mary E. Doe, mother, if living, otherwise to John J. Doe, father, and William F. Doe, brother, equally
or to survivors
The Following Are Company Approved Beneficiary Designations:
Type of
Beneficiary
Designation
Comments
Insured’s Estate
Estate of insured
Policy proceeds will be added to other assets of
the Insured’s estate. The arrangement is useful if
the proceeds are intended to cover debts, funeral
expenses, taxes and expenses of administering
the estate. However, such designation may have
tax consequences and may subject the proceeds
to probate costs and claims to creditors.
Executors or
Administrators of
Estates
Estate of insured
An Executor or Administrator may not be named as
a beneficiary. The designation, in such instances
must be “Estate of The Insured”.
One Beneficiary
Mary E. Doe, wife
A married woman should be designated by her
own given name and should not be designated as
“Mrs. John J. Doe”.
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New Business - 25
Type of
Beneficiary
Designation
Comments
Two Beneficiaries
John J. Doe, father and Mary E. Doe, mother equally or
to survivors.
Two Beneficiaries
(Unequal Shares)
3/4 to Mary E. Doe, wife, and 1/4 to Jane J. Doe,
mother; or to survivors.
Three or more
Beneficiaries
John J. Doe, father; Mary E. Doe, mother and Jane J.
Doe, sister, equally or to survivors.
Three or more
Beneficiaries
(Unequal Shares)
3/4 to John J. Doe, father; Mary E. Doe, mother and
Jane J. Doe, sister, 1/4 to William F. Doe, brother. Share
of the beneficiary who predeceases insured to be paid
in equal shares to the surviving beneficiaries.
One Contingent
Beneficiary
Second - Jane Doe
Two Contingent
Beneficiaries
Second - (See comment section)
See instructions above with respect to wording of two primary beneficiaries.
Three or more
Contingent
Beneficiaries
Second - (See comment section)
See instructions above with respect to wording of
three or more primary beneficiaries.
Children of the
Insured
Sam M. Doe, Susan B. Doe, and any other children
hereafter born to the marriage of or hereafter legally
adopted by insured Mary E. Doe, equally or to
survivors.
The Company will accept unnamed children
designations in only this manner. All children living
at the time of designation must be named and the
spouse of the Insured must be named. This rule
is to be followed whether the designation is a first
(Primary) designation or a second (Contingent)
designation. Policy will be issued NIA if the
application states “children of insured”, and does
not list children’s names.
Children of the
Insured - If no
children living at date
of application
Any children hereafter born to marriage of or hereafter
legally adopted by insured and Mary E. Doe, equally or
to survivors.
Children of the
Insured - If no living
spouse
Sam M. Doe, Susan B. Doe, Jane J. Doe, children of
the insured, equally or to survivors.
Grandchildren of the
Insured
Sam M. Doe, Susan B. Doe and James R. Brown,
grandchildren, and any other children hereafter born to
marriage of or hereafter legally adopted by James E.
Doe and wife, Jane A. Doe, and Peter R. Brown and
wife, Susan B. Brown, equally or to survivors.
Use fractions with a common denominator.
Percentages are also acceptable. Do not show
specific dollar amounts to multiple beneficiaries in
class designation.
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For Agent Use Only; Not for Use with Consumers
New Business - 26
Type of
Beneficiary
Designation
Comments
Partnership Beneficiary
John A. Smith, William W. Jones and Henry H. Brown,
business partners, equally or to survivor.
The company prefers that the partnership itself
not be designated as a beneficiary. It is preferred
that either the partners or the wife of the
insured, whichever arrangement is preferred, be
designated. If distribution is to be on any basis
other than equal, refer above to the instructions for
unequal shares. If the agreement contemplates
payment to the survivors in the event of death of
one partner prior to the death of the insured, the
phrase “or to the survivor or survivors” should be
added. However, there are instances when it is
recognized that it is essential that the partnership
itself be designated as the beneficiary. If you
are reliably informed that there exists a written
partnership agreement which contains a buy and
sell arrangement requiring that the proceeds be
paid to the partnership, the partnership itself may
be designated
John A. Smith, William W. Jones and Henry H. Brown,
business partners, and Mary E. White, wife, equally or
to survivor.
Smith, Jones Brown, and White a co-partnership as
now or may hereafter be constituted. Payment or the
proceeds to the beneficiary as designated shall, under
all circumstances, constitute a full discharge to the
company of all liability under the policy.
Corporation
Beneficiary
The ABC Company, Inc. Galveston, Texas a Texas
Corporation.
Creditor Beneficiary
The ABC Saving and Loan Association of Galveston,
Texas, a Texas Corporation, creditor, as its interest may
appear, balance, if any, to Mary E. Doe, wife.
Common Clause
Disaster
Under the beneficiary designation, type the following:
Anything in the policy to the contrary notwithstanding,
a beneficiary has a right to proceeds due under this
policy only if he or she is living at the expiration of the
30th day following the death of the insured.
Trustee Beneficiary Trustee Designated
in last Will and
Testament of Insured
To the trustee under the will duly admitted to probate
as the last will and testament of John J. Doe. Payment
of the proceeds to or the release of the trustee shall
constitute a full discharge to the Company of all liability
under the policy. (or) Mary E. Doe, daughter, John J.
Doe, son, equally or to survivors. In the event any
of said beneficiaries are, at the time of the insured’s
death, under the age of ____ years, the share or shares
of those under _____ years of age shall be paid to the
Trustee under the will duly admitted to probate as the
last will and testament of William R. Doe. Payment
of the proceeds to or the release of the Trustee shall
constitute a full discharge to the Company of all liability
under the policy.
Trustee Beneficiary,
Trust established
under written trust
agreement
To the Trustee under written agreement dated_____.
Payment or the proceeds to or the release of the
Trustee shall constitute a full discharge to the Company
of all liability under the policy. (or) To the Blank Trust
Company, Galveston, Texas as Trustee, or its successor
in trust, under written trust agreement dated ______.
Payment of the proceeds to or the release of the
Trustee shall constitute a full discharge to Company of
all liability under the policy.
Company policies of recent issue contain a 5-day
common disaster provision. Provision can be
amended to reflect any number of days not to
exceed 30 days.
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For Agent Use Only; Not for Use with Consumers
New Business - 27
Type of
Beneficiary
Designation
Comments
Trustee Beneficiary,
no written trust
agreement
Mary E. Doe, daughter, John J. Doe, son, and Richard
R. Doe, son, equally or to survivors. In the event any
of said beneficiaries are, at the time of the insured’s
death, under the age of _______ years, the share or
shares of those under ________ years of age shall be
paid to ________ Trustee. Payment of the proceeds
to or the release of the Trustee shall constitute a full
discharge to the Company of all liability under the policy.
The Company does not assume responsibility
in the event policy proceeds payable as death
benefits are not properly used for the sole
benefit of the minor beneficiary. A written trust
agreement will afford protection for a minor to
a much greater extent than is available where
there is no written agreement. The advisability of
a trustee designation in the event a written trust
agreement does not exist should be most carefully
considered.
Irrevocable
Beneficiary
Under the beneficiary designation type the following:
During the lifetime of said beneficiary (beneficiaries)
the Insured shall not avail himself of any right, privilege
or benefit granted under this policy without the
beneficiary’s written joinder or consent.
Irrevocable designation should not be made
unless the Insured is fully advised and willing to
abide by all of the consequences. Irrevocable
beneficiaries are treated as owners of the policy
and transactions involving the policy may not be
completed without their consent. It should be
remembered that the minor beneficiaries cannot
act for themselves and, thus it is usually not to the
insured’s advantage to name a minor an irrevocable
beneficiary.
Guardian Beneficiary
Split Dollar
The Company will not accept a designation that
reflects that a guardian, in that capacity, is a
beneficiary. The procedure to follow is to name
the person for whom the insurance proceeds
may be intended; it follows that whoever qualifies
as guardian will be able to collect any proceeds
due. This has to be a court appointed Guardian distinguished as such.
The net proceeds of the death claim shall be paid to
John H. Smith, employer of the insured, to the extent
of the net cash value available at the end of the period
to which premiums have been paid at the date of death
of the Insured, balance to Mary E. Doe, wife.
Institutional
or Charitable
Beneficiary
Indicate the legal entity of the institution or charity,
street address, city and state. If a corporation, we
need the complete address. If a Catholic Church,
we need the name of the diocese included in the
designation.
Inspection Reports - the Fair Credit Reporting Act
The Fair Credit Reporting Act came into effect on April 25, 1971, in all States, the District of Columbia,
and Puerto Rico. Its basic purpose is to protect an individual from any abuses which may arise as a
result of an inspection report being made. It sets requirements for accuracy and fairness and the
protection of an individual’s rights and interests.
To protect the individual, certain formal requirements must be satisfied by reporting agencies (e.g.
PMSI, Hooper Holmes, etc.) and by users of reports made by these agencies, such as insurance
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For Agent Use Only; Not for Use with Consumers
New Business - 28
companies. American National, with all other insurance companies who use inspection reports, is
specifically subject to the provisions of the law.
Three Basic Areas of Compliance
1. The Fair Credit Reporting Act requires that any person on whom an inspection report will be made
must be notified of such an investigation. The notification is included in the Application for Insurance.
The soliciting agent should explain this notification to the applicant very carefully in order to comply
with the spirit as well as the provisions of the law. If the applicant is a juvenile,the notification
should be explained to the parent or guardian.
2. American National must give additional information on the nature and scope of such reports to any
applicant for insurance should the applicant make a written request for more information on such a
report.
3. Should American National decline, or modify an insurance application, or decline an application for
an agency contract, wholly or partly because of information developed by a reporting company,
American National must, upon request, give the applicant the name and local address of the
reporting company that supplied the information.
Forms to be Utilized to Comply with the Regulations
1. “Consumer Report Notice to Insurance Applicant” - One of these notices must be given to
the applicant at the time a life insurance application is written. There are no exceptions. This
notice is printed on Life and Health applications, the Preliminary Inquiry Blank, Conversion and
Reinstatement applications, and the Declaration of Insurability. This form tells the applicant how
additional information may be obtained by writing to the Home Office. No member of the field
office should attempt to comply with any such request for additional information other than giving
the address of the Underwriting Department.
2. When American National postpones or declines an application for insurance, wholly or partly
because of information developed by a reporting company, the Home Office will attach a notice to
the applicant’s decline or postponed letter which will give the applicant the name, address, and the
“800” number of the reporting company that supplied us with this information.
3. When American National rates or modifies an application wholly or partly because of information
developed by a reporting company, the Home Office will include form 6313 with the policy. This
form will give the applicant the name, address, and a “800” number of the reporting company that
supplied us with this information. This form must be delivered to the insured together with the
policy.
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For Agent Use Only; Not for Use with Consumers
New Business - 29
Life New Business Contact Information
Life Insurance Services
The following addresses should be used for general service items, policy changes, premium payments, etc.
P.O. Box For Fed-Ex/Overnight Mail
American National Insurance Company
American National Insurance Company
Mail Processing Center
Attn: Life Insurance Services
Attn: Life Insurance Services Box 3257
P.O. Box 3257
1949 E. Sunshine St
Springfield, MO 65808-3257
Springfield, MO 65899-3257
Life Business
The following addresses should be used for new life applications and supporting documentation:
American National Insurance Company - New Business
P.O. Box American National Insurance Company
Attn: Life New Business
P.O. Box 3297
Springfield, MO 65808-3297
Contacts - Life Business
Life New Business:
Variable UL:
Life Customer Service:
Life Insurance Services:
For Fed-Ex/Overnight Mail
American National Insurance Company
Mail Processing Center
Attn: Life New Business 3297
1949 E. Sunshine St
Springfield, MO 65899-0001
1-800-773-0924
1-800-306-2959
1-800-899-6806
1-800-899-6806
Fax: 1-888-237-1012
Fax: (409) 766-2021
Fax: (409) 766-6955
Fax: (409) 766-6015
Questions & Application/Requirement Submissions: E-Mail: [email protected]
American National Life Insurance Company of New York - New Business
Mailing Address
Life New Business - New York
One Moody Plaza – 7th floor
Galveston, TX 77550
For Fed-Ex/Overnight Mail
Life New Business - New York
One Moody Plaza – 7th floor
Galveston, TX 77550
Phone Numbers
NY Life New Business:
Regulation 60 Unit (NY):
1-866-490-3163
1-877-540-5657
Application & Requirement Submissions
Fax: 281-538-6727
Questions & Application/Requirement Submissions: E-Mail: [email protected]
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For Agent Use Only; Not for Use with Consumers
New Business - 30
Section Two: Underwriting
See the Underwriting Section of IMG’s Web site for Valuable
Underwriting Information, www.img.anicoweb.com.
Prior to Submitting the Life Application to the Home Office, the Agent Should:
• Verify that his /her licensing appointment to represent American National has been approved in
compliance with applicable state regulations. All agents must possess a valid American National
Insurance Company Contract and Insurance License to submit new business.
• Check state compliance for state required forms.
• Ensure that the application is clear and complete in all respects. All “yes” answers on the application
should include complete details as to dates and results of any test or examinations.
• Ensure that the application is completed in black ink. (All health and physician information questions
must be answered and completed).
• Check the application for errors and omissions, dates and ensure the application is signed by all
parties to the contract, including the agent.
• Ensure that any erasures or changes to the application have been initialed by the applicant.
• Indicate on the application Field Office Checklist what medical requirements have been ordered.
• Indicate associated applications, i.e. family members, business partners, etc.
• Ensure that Form # 2011 has been completed for PAC (Pre-Authorized Check) along with a voided
check or that if the application includes the PAC information that a void check is included with the
application.
• Ensure that all necessary financial information has been requested.
• Forward a copy of the trust agreement, if the policy is owned by a trust.
• Submit a cover memo should he/she feel this may speed up the underwriting process...i.e., for
unusual situations.
The Agent Should Not:
• Collect any money with the application if the applicant was previously declined or rated.
• Use “white out” or liquid paper on any application. This is unacceptable on a legal document. Any
and all mistakes should be corrected and initialed by the applicant.
• Submit an application when there is surgery or further consultation being contemplated for
undiagnosed conditions or problems.
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For Agent Use Only; Not for Use with Consumers
Underwriting - 31
Review of The Life Application
• Name: All names of the Owner, Proposed Insured, Beneficiary and Proposed Payer should be
printed in full.
• Age: Premium and medical requirements are determined by the age of the applicant’s last birthday.
• Occupation: The exact nature of the business profession or occupation of the applicant should be
stated. General terms such as “self employed” or “consultant” should be avoided.
• Amount, Plan and Benefits: These must clearly be specified on the application. “Amount” is the
sum to be insured under the basic plan. Amounts requested for additional riders should be noted.
• History of Rating or Declination: If the agent becomes aware of any rating or decline, money
should not be collected and the Conditional Receipt should not be issued.
• Insurance In Force in all companies: If the applicant has insurance in force on his/her life with
other companies, he/she should state:
• total amount of basic coverage
• amount of Accidental Death Benefit
• amount of Disability Income
These figures should include insurance in force with American National Insurance Company.
The maximum Accidental Death Benefit on all policies for all companies is $250,000.
• Family or Attending Physicians: It is important that the full name, address and phone number of
the physician and/or hospital be given as well as the dates and reasons for consultations.
• The agent should make certain the authorization form is properly signed, dated and witnessed.
• “N/A” is not acceptable as an answer.
• If the doctor/clinic fee is known, show on the application.
• Aviation and Avocations: An Aviation Questionnaire must be completed if the proposed insured
has flown as a pilot, student pilot or crew member within the last five (5) years or has any intention
of doing so in the future.
The appropriate Avocation Questionnaire must be completed if the proposed insured engages or
plans to engage in any sport or activity that could be hazardous, such as scuba diving, auto/boat
racing or mountain climbing.
Form
Questionnaire
8313
8313-A
Aviation
Skin and Scuba Diving
8313-B
Motor Sports
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For Agent Use Only; Not for Use with Consumers
Underwriting - 32
Underwriting Children
• Applications for life insurance on the lives of children will be considered on the same basis as for
adults, subject to any age restrictions specific to particular plans.
• An application will not be considered if the child is less than 15 days old on the date of the application.
• The child must be seen by the agent at the time the application is completed.
• The wage earning parent must be insured for at least an equal total amount proposed on the child.
• Children should be insured in sequence, beginning with the oldest. All children in the family should
be insured for a similar amount.
• Insurance on the life of a child should not be applied for by anyone other than a parent, unless an
insurable interest can be demonstrated through an explanatory letter from the agent.
• If the child is less than the age required to sign the application (indicated above the signature line
on the application and in many states age 16) an owner must be designated in Section 3 of the
application and the owner must sign the application.
• For children ages 0-17, the producer should obtain an attending physician’s statement (APS) when
the proposed amount of insurance applied for exceeds $149,999. Inspection required for this age
group when amount exceeds $100,000.
• A blood profile will not routinely be required for children in the 0-16 age group.
Preferred Risk Underwriting - Available on Designated Plans Only
Preferred risk contracts are designed and priced to produce better mortality results than can be expected
from an average block of business. In other words, to support pricing assumptions, preferred lives
must be better than standard lives.
Preferred Criteria
Ages 0 - 60
Item
Preferred Plus
Preferred
Standard Plus
Cholesterol
300
300
300
Ratio
4.5
5.5
6.0
Non-Nicotine User
5 Years
3 Years
2 Years
Cigar or smokeless tobacco use of no more than 2 per month and negative HOS
Blood Pressure
No RX
RX/UN
RX/UN
to age 60
135/8 0
140/90
150/90
Family History
No death or occurrence
CAD, CVA or Familial
Cancers (breast, colon,
lung, ovarian, prostate or
melanoma) in parents or
siblings prior to age 65
No death from CAD, CVA,
or Familial Cancers (breast,
colon, lung, ovarian,
prostate or melanoma) in
parents or siblings prior to
age 60
No death from CAD or CVA
in parents or siblings prior to
age 60
Click to Return to Table of Contents
For Agent Use Only; Not for Use with Consumers
Underwriting - 33
Preferred Criteria
Ages 0 - 60
Item
Preferred Plus
Preferred
Standard Plus
Weight
See Build Table
add 10 lbs to Build Table
add 10 lbs to Build Table
Driving
No DUI/DWI or reckless
driving for 5 years. No
moving violations >2 in 5
yrs.
No DUI/DWI or reckless
driving for 5 years. No
moving violations >2 in 3
yrs.
No DUI/DWI for 5 years
and not ratable for driving
history.
Aviation
See Aviation Guide Form 6965
Residency
3 years in the U.S. Must be a U.S. or Canadian Citizen or permanent resident. 2 years
for Standard Plus.
Travel
Travel to undeveloped countries, or countries where political violence or terrorism is a
significant risk, may be rated or declined. If the risk is acceptable, there may be times a
permanent plan is required.
Personal Medical History
No personal history of heart disease, cancer, diabetes*, or other rateable medical
condition. *Standard plus is possible for diabetes in certain circumstances on permanent
plans only
Alcohol & Drug Use
No alcohol or drug abuse in the past 10 years.
Preferred Criteria
Ages 61 +
Item
Preferred Plus
Preferred
Standard Plus
Cholesterol
300
300
300
Ratio
5.0
5.5
6.0
Untreated cholesterol of <130 will not be eligible for Std. Plus, Pref. or Pref. Plus
Non-Nicotine User
5 Years
3 Years
2 Years
Cigar or smokeless tobacco use of no more than 2 per month and negative HOS
Blood Pressure
No RX
RX/UN
RX/UN
140/85
150/90
155/95
Family History
Not considered at ages 71 & up.
Weight
See Build Table
add 15 lbs to Build Table
add 15 lbs to Build Table
Driving
No DUI/DWI or reckless
driving for 5 years. No
moving violations >2 in 5
yrs.
No DUI/DWI or reckless
driving for 5 years. No
moving violations >2 in 3
yrs.
No DUI/DWI for 5 years.
Click to Return to Table of Contents
For Agent Use Only; Not for Use with Consumers
Underwriting - 34
Preferred Criteria
Ages 61 +
Item
Preferred Plus
Preferred
Standard Plus
Aviation
Not available for ages 71+; Aviation exclusion required for 75+
For ages 61-70, see aviation guideline form #6965
Residency
3 years in the U.S. Must be a U.S. or Canadian Citizen or permanent resident. 2 years for
Standard Plus.
Travel
Travel to undeveloped countries, or countries where political violence or terrorism is a
significant risk, may be rated or declined. If the risk is acceptable, there may be times a
permanent plan is required.
Personal Medical History
No personal history of heart disease, cancer, diabetes*, or other rateable medical condition.
*Standard plus is possible in certain circumstances.
Alcohol & Drug Use
No alcohol or drug abuse in the past 10 years.
Minimum Build
BMI must be greater than 18.5 to be considered Std. Plus, Pref. or Pref. Plus
Serum Albumin
4.0 or greater
4.0 or greater
4.0 or greater
eGFR
60+
60+
60+
Cognitive/Functional
No indications of cognitive impairment or inability to perform ADL’s
Preferred Build Table
Height Female Male
5’0”
137
153
5’1”
141
160
5’2”
145
164
5’3”
149
168
5’4”
152
172
5’5”
155
176
5’6”
158
180
Height Female Male
5’7”
163
185
5’8”
167
189
5’9”
172
193
5’10”
177
197
5’11”
182
203
6’0”
187
208
6’1”
192
214
Height Female Male
6’2”
197
220
6’3”
-226
6’4”
-231
6’5”
-237
6’6”
-243
• Add 10 pounds Standard Plus NT, Preferred NT and Preferred TB.
• Add 15 pounds Standard Plus and Preferred for ages 71 & up.
Click to Return to Table of Contents
For Agent Use Only; Not for Use with Consumers
Underwriting - 35
Medical Requirements
The age and amount medical requirements must be ordered by the agent. See the next page for
Requirements.
• Age is age as of last birthday at the time of application regardless of any special dating request.
• Amount is the maximum amount of insurance that will be placed :
• Use larger amount
• Add all policies currently being applied for and placed in force with American National within
the last twelve (12) months.
• When medical evidence has been submitted to American National within the last six (6) months
in connection with a previous application, that evidence can usually be used to reduce current
requirements.
• If the applicant has been recently underwritten and assessed standard by another insurance
company, and the medical evidence is made available to us, we will use this evidence if it is
reasonably current, based on the following:
Exam6 months
ECG6 months
X-ray1 year
Blood Profile
6 months
• Applicants who are highly substandard, or who have had recent health problems, may require
additional investigation before proper risk assessment can be made. Before an agent orders
requirements, he/she should check with an underwriter to see what will be required.
• If there is evidence that the applicant has been acquiring large amounts of insurance within a
relatively short period of time additional evidence may be requested.
Make sure that you indicate on the application Field Office Checklist what medical
requirements have been ordered.
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For Agent Use Only; Not for Use with Consumers
Underwriting - 36
Underwriting Classes
Preferred Plus Non-Nicotine User
Standard Plus Non-Nicotine User Preferred Nicotine User
Preferred Non-Nicotine User
Standard Non-Nicotine User
Standard Nicotine User
Requirements for IUL*, EXECUL, PWL Plans* & ANICO Signature Term
Amount being applied for:
Issue Ages
17-35
36-40
41-50
51-60
61-65
66-70
71 & up
$
0
-
24,999
A
A
A
A
A
B
B
$
25,000
-
49,999
A
A
A
A
A
D
D
$
50,000
-
99,999
A
A
A
B
B
F
F
$
100,000
-
149,999
C
B
B
B
B
I
I
$
150,000
-
250,000
C
B
B
B
B
I
I
$
250,001
-
500,000
I
G
G
G
G
I
I
$
500,001
-
1,000,000
I
I
Q
K
M
M
P
$
1,000,001
-
1,500,000
J
J
L
L
N
N
P
$
1,500,001
-
3,000,000
J
J
L
L
N
N
P
$
3,000,001
-
5,000,000
J
J
L
N
N
N
P
$
5,000,001
-
7,500,000
J
J
N
N
O
O
P
$
7,500,001
-
10,000,000
N
N
N
N
O
O
P
$
10,000,001
-
and up
N
N
O
O
O
O
P
A
Full Application
B
Prescription Check
C
Prescription Check, MVR
D
Paramed, HOS, Prescription Check
E
Blood, HOS, Physical Measurement, MVR
F
Blood, HOS, Physical Measurement, Prescription Check
G
Paramed, Full Blood HOS
H
Blood, HOS, Physical measurement, Prescription Check, MVR
I
Paramed, Full Blood HOS, MVR
J
Paramed, Full Blood, HOS, Inspection, MVR
K
Paramed, Full Blood, HOS, Resting EKG, MVR, Prescription Check
L
Paramed, Full Blood, HOS, Resting EKG, Inspection, MVR, Prescription Check
M
M.D. Exam, Full Blood, HOS, Resting EKG, MVR, Prescription Check
N
M.D. Exam, Full Blood, HOS, Resting EKG, Inspection, MVR, Prescription Check
O
M.D. Exam, Full Blood, HOS, Exercise EKG, Inspection, MVR, Prescription Check
P
M.D. Exam w/ Sr. Age Supplement, Full Blood, HOS, Resting EKG & Inspection, MVR, Prescription
Check
Q
Paramed, Full Blood, HOS, MVR, Prescription Check
Please Note: “Measurements” refers to record of blood pressure, pulse, height and weight recorded on
the lab ticket when blood is drawn.
Up to $1,000,001 the underwriter will generate a phone inspection on an “as needed” basis.
Click to Return to Table of Contents
For Agent Use Only; Not for Use with Consumers
Underwriting - 37
Underwriting Classes
Preferred Plus Non-Nicotine User
Standard Plus Non-Nicotine User
Preferred Nicotine User
Preferred Non-Nicotine User
Standard Non-Nicotine User
Standard Nicotine User
Requirements for VUL Plans
Issue Ages
Amount being applied for:
17-35
36-40
41-50
51-60
61-65
66-70
71 & up
$
0 - 24,999
A
A
A
A
B
B
B
$
25,000 - 49,999
A
A
A
B
D
D
D
$
50,000 - 99,999
B
B
B
D
F
F
F
$
100,000 - 250,000
E
F
G
G
G
I
I
$
250,001 - 500,000
I
G
G
G
G
I
I
$
500,001 - 1,000,000
I
I
Q
K
M
M
P
$
1,000,001 - 1,500,000
J
J
L
L
N
N
P
$
1,500,001 - 3,000,000
J
J
L
L
N
N
P
$
3,000,001 - 5,000,000
J
J
L
N
N
N
P
$
5,000,001 - 7,500,000
J
J
N
N
O
O
P
$
7,500,001 - 10,000,000
N
N
N
N
O
O
P
N
N
O
O
O
O
P
$
10,000,001 - and up
A
Full Application
B
Prescription Check
C
Prescription Check, MVR
D
Paramed, HOS, Prescription Check
E
Blood, HOS, Physical Measurement, MVR
F
Blood, HOS, Physical Measurement, Prescription Check
G
Paramed, Full Blood HOS
H
Blood, HOS, Physical measurement, Prescription Check, MVR
I
Paramed, Full Blood HOS, MVR
J
Paramed, Full Blood, HOS, Inspection, MVR
K
Paramed, Full Blood, HOS, Resting EKG, MVR, Prescription Check
L
Paramed, Full Blood, HOS, Resting EKG, Inspection, MVR, Prescription Check
M
M.D. Exam, Full Blood, HOS, Resting EKG, MVR, Prescription Check
N
M.D. Exam, Full Blood, HOS, Resting EKG, Inspection, MVR, Prescription Check
O
M.D. Exam, Full Blood, HOS, Exercise EKG, Inspection, MVR, Prescription Check
P
M.D. Exam w/ Sr. Age Supplement, Full Blood, HOS, Resting EKG & Inspection, MVR, Prescription Check
Q
Paramed, Full Blood, HOS, MVR, Prescription Check
Please Note: “Measurements” refers to record of blood pressure, pulse, height and weight recorded on the
lab ticket when blood is drawn.
Up to $1,000,001 the underwriter will generate a phone inspection on an “as needed” basis.
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Underwriting - 38
Important Information
1. Underwriting continues to reserve the right to order any requirements felt necessary to adequately
assess the risk.
2. An exam by an applicant’s personal physician is usually unacceptable.
3. The non-medical privilege will not automatically apply to applicants not seen by the agent.
4. Medical requirements will not be waived if amount is reduced after the application is submitted.
5. An application written in excess of $500,000, including accidental death benefit, must be written
C.O.D. Any policy that will be Table 4 or over should also be C.O.D.
6. Amounts over $3,000,000 will require a financial statement with the application.
Medical Evidence
Examinations
Paramedical - a basic exam by an approved paramedical examiner. It consists of a complete history
taken on an American National Life Medical Examination Form. The examiner records the height,
weight and chest measurements, pulse rate, blood pressure and urinalysis.
Paramedical and Inspection Services
The numbers below are national numbers provided to assist agency staff in contacting a local servicing
company representative. Appointments are arranged at the local level.
Setting Up Examinations
(Agent to order and indicate from which Company on checklist)
APPS
Superior Mobile Medics
Portamedic
1-800-635-1677
1-800-898-EXAM
1-800-782-7373
ExamOne
PMSI/EMSI
1-800-768-2056
1-800-338-5629
Inspections $1,000,001 & Over
(Agent to order and indicate from which Company on checklist)
First Financial
ExamOne
Underwriting Services
(formerly Intellisys)
1-800-570-3477
1-800-768-2056
Hooper Holmes
PMSI
1-800-443-1417
1-800-821-3879
Fax 1-800-752-1794
Fax 1-800-753-0283
For amounts over $1,000,000 an inspection is to be requested by the agent. The agent should note For
amounts that this requirement has been requested on the application. Make all clients aware of the
inspection possibility at any amount.
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Underwriting - 39
Examination by M.D.
Examinations may be arranged with any licensed doctor of Medicine who holds the degree of M.D., other
than a physician who has a close business or personal relationship with the applicant, insured or agent.
The paramed service scheduling an M.D. exam should make every attempt to have the doctor also
complete the blood profile to avoid multiple appointments for the applicant.
An exam by a physician is required when there is a history of heart murmur and/or rheumatic fever.
Physical Measurement
Completed in conjunction with a blood profile. A record of pulse, blood pressure, height and weight is
collected by the para-med who draws the blood.
Results are recorded on the authorization slip and transmitted electronically with the lab results.
ECG and Stress ECG
Resting ECG - a 12 lead electrocardiogram submitted without interpretation. This is the regular ECG
ordered when the Evidence of Insurability indicates it is required for age and amount.
Stress ECG - The stress ECG American National requires is a treadmill ECG.
Blood Profile
A full blood profile is required on amounts of $50,000 or over, (exception $50,000 - $99,999 ages 1850.). Any plan offering a preferred rate requires a full blood profile.
Lab One and CRL are presently the only laboratories authorized by American National to perform blood
screening.
The Attending Physicians Statement
• A report from an attending physician should always be ordered if:
• The application is for $1,000,000 or more
• American National reserves the right to order any report it deems warranted due to health history.
APS Alternative
An APS Alternative is simply a brief telephone interview with the proposed insured regarding a specific
health condition. Based on the merits of the case, we can often use this alternative method of gathering
important information with those clients who have conditions such as high blood pressure, asthma,
thyroid problems and other conditions/situations.
The purpose of the APS Alternative is simple: to improve service time while maintaining quality
underwriting. Traditional APS reports take an average of 18 days to get back to the home office. The
APS alternative takes an average of 4 days to complete.
Remember, it’s very important that you prepare your client for the possibility of a telephone interview.
By eliminating the element of surprise, you can minimize misunderstandings and unnecessary delays.
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Underwriting - 40
Questionnaires
From time to time, the underwriter will require additional information provided by a medical questionnaire.
Traditionally, these questionnaires are completed by the applicant and/or doctor.
Questionnaires currently in use and available on Virtual Forms:
• Alcohol/Drug
• Aviation
• Chest Pain
• Avocations
• Racing
• Scuba Diving
• Sky Diving
• Mental/Nervous Disorder
• Financial
• Neck/Back Pain
• Respiratory
• Gastrointestinal
• Financial (Business)
• Diabetic
• Hypertension
Privacy Legislation
Some states have enacted legislation requiring notification to, or authorization by, persons whom we
intend to inspect via one of the inspection companies. Other states have it under consideration and
may be introducing it. Notice and/or informed consent plus notification of adverse action resulting
from such a report, along with the right to question the authority of information seem to be the general
aim of such laws.
Requires that the applicant sign special authorization if he/she resides in or signs an application in a
privacy state, even if the insurance is being solicited in a non-privacy state.
American National’s application incorporates the special authorization wording into each state variation.
The Privacy States
Arizona
California
Connecticut
Georgia
Illinois
Kansas
Maine
Massachusetts
Minnesota
Montana
Nevada
New Jersey
New York
North Carolina
Ohio
Oregon
Texas
Virginia
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Underwriting - 41
ANICO Financial Underwriting Guidelines
Personal Coverage
Income Replacement Requirements:
$3,000,001-$10,000,000
• ANICO Financial Supplement (form 4165)
• Inspection from First Financial (800-570-3477) or another approved vendor of comparable quality
• If no 3rd party confirmation, underwriter may request copy of most recent 1040 or statement from CPA.
• Cover letter explaining purpose of coverage and how amount was determined.
$10,000,000+
• ANICO Financial Supplement (form 4165)
• Inspection from First Financial (800-570-3477) or another approved vendor of comparable quality.
• Copy of most recent 1040 or written 3rd party financials from CPA.
• Cover letter explaining purpose of coverage and how amount was determined.
Income Replacement Table:
Age
20-40
41-50
51-60
61-65
>65
Income Factor
20 to 30 x
15 to 20 x
10 to 15 x
8x
5x
Estate Protection:
Requirements:
$3,000,001-$10,000,000
• ANICO Financial Supplement (form 4165)
• Inspection Report from First Financial (with 3rd party CPA or attorney confirmation) or comparable
inspection from another approved vendor.
• If no 3rd party confirmation on IR, will need written 3rd party financials from CPA or Attorney familiar
with client’s financial situation, but who is at arms length from the sale.
$10,000,001+
• ANICO Financial Supplement (form 4165)
• Inspection Report from First Financial or comparable inspection from another approved vendor
• Written 3rd party financials from CPA or Attorney who is familiar with client’s financial situation, but
who is also at arms length from the sale.
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Underwriting - 42
Estate Protection Formula:
Current value of worth with reasonable appreciation X remaining life expectancy or 15 years, whichever
is less x 50% (Future value x 50%)
Juvenile Coverage
• Siblings equally covered
• Parents with at least equal coverage
• Amounts greater than $250,000 require facultative reinsurance
Charitable
• Multiply average annual giving by 10 for typical maximum face amount
• Personal coverage should be adequately covered.
• Include cover letter explaining how face amount determined.
Business Coverage:
Buy/Sell:
• Value of company multiplied by % of ownership to determine max face amt.
• Cover letter explaining how amount was determined, buy/sell agreement details, market value of
company, listing of all owners with % of ownership and status of insurance coverage on partners.
• For amounts over $1,000,000, will need Inspection report with Business Beneficiary Report
• For amounts over $3,000,000, will need Inspection report with Business Beneficiary Report and
most recent business financial statements
Key Person:
• 10 x annual income for typical maximum face amount.
• Cover letter explaining purpose of insurance and how amount determined and how person is “key”
to operation.
American National reserves the right to order any requirement it deems necessary for sound
underwriting practice.
Stranger Owned Life Insurance
It is ANICO’s policy that life insurance should only be purchased to provide protection to those with an
insurable interest in the life of the insured. The Company will not knowingly participate in life insurance
sales motivated by the possible sale of policies in a secondary market or participation of investors in
policy death benefits. This includes Stranger Owned Life Insurance, Investor Owned Life Insurance,
pre-planned life settlements, or viatication.
We use a number of tools and forms to determine insurable interest and ownership. These forms
include the Supplemental Application-Premium Funding Intent form (which is required for all applications
where the proposed insured is age 70 and above and the proposed amount of insurance is $500,000
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Underwriting - 43
or more) and the USA Patriot Act Notification and Customer Identification Verification form. Depending
upon the answers to the questions on our application forms, additional requirements may exist.
These two forms can be ordered from our Web site, www.img.anicoweb.com, Virtual Forms tab,
by ordering the following form numbers: USA Patriot Act Notification and Customer Identification
Verification #4439 and Supplemental Application-Premium Funding Intent #10051-ICC09.
Underwriting Information
Life Insurance Services
The following addresses should be used for general service items, policy changes, premium payments,
etc.
P.O. Box For Fed-Ex/Overnight Mail
American National Insurance Company
Attn: Life Insurance Services
P.O. Box 3257
Springfield, MO 65808-3257
American National Insurance Company
Mail Processing Center
Attn: Life Insurance Services Box 3257
1949 E. Sunshine St
Springfield, MO 65899-3257
The agent may obtain the Life Underwriters’ names and extension numbers at the Home Office by
clicking on the “Meet the Underwriters” link located in the Underwriting Section on the IMG website. www.img.anicoweb.com
Status of Pending Life Applications
Medical Questions Regarding Prospective
Clients or Problems on Pending Life Cases
1-800-773-0924 or
1-800-899-6802+ Voice
Mailbox Number
Fax: 1-888-237-1012
Life Insurance Services:
1-800-899-6806
Fax: (409) 766-6015
Status of Pending Life Applications Life
Customer Service:
1-800-899-6806
Fax: (409) 766-6955
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Underwriting - 44
Section Three: Illustration Practices
Life Insurance Illustration Practices
American National Insurance Company is Committed to the Highest Standards of Conduct Related to
the Solicitation and Sale of Its Products and Services.
This commitment assures that the company and its Agents will not only comply with all relevant
regulations regarding sales practices, but will strive to provide its clients with appropriate disclosure,
complete information and sound insurance advice.
The life insurance illustration is one of the most important pieces of information we provide to our
customers. The illustration provides key quantitative information relating to the base values of the
insurance policy, as well as illustrative values based on current assumptions. The illustration is critical
in establishing the customers’ expectations about the future value of their policy and therefore must
be properly prepared and carefully explained.
Insurance policy illustrations are considered consumer advertising in most jurisdictions and therefore
are regulated by any relevant advertising statutes. In addition, several states have adopted the Life
Illustration Model Regulation proposed by the National Association of Insurance Commissioners
(NAIC). As of the date of this printing, the following states have adopted the Life Illustration NAIC
Model Regulation:
State
Alabama
Alaska
California
Colorado
Connecticut
Delaware
Hawaii
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Adoption
Date
1/1/98
9/1/98
7/1/97
4/1/97
1/1/99
7/1/97
7/1/01
6/1/98
1/1/00
2/1/97
1/1/98
1/1/08
7/1/97
Maine
Maryland
Mississippi
Missouri
Montana
Nebraska
Nevada
Adoption
Date
12/15/99
1/1/98
7/1/99
1/1/99
1/1/02
7/1/97
1/1/98
New Hampshire
4/1/00
New Mexico
10/1/98
North Carolina
1/1/97
North Dakota
Ohio
1/1/97
10/1/97
State
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State
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Texas
Utah
Vermont
Washington
West Virginia
Wisconsin
Adoption
Date
7/1/97
7/1/97
7/1/97
1/1/99
7/1/97
7/1/97
7/1/00
1/1/97
3/1/99
1/1/98
8/1/08
1/1/98
Illustration Practices 45
For Agent Use Only; Not for Use with Consumers
The Life Illustration NAIC Model Regulation
The Life Insurance Illustration Model Regulation, adopted by many states, requires agents to follow
procedures involving training, point-of-sale explanations and illustration signature requirements that
must be used on and at its date that the model regulation is made effective in the state (see states and
effective dates). The agent, agency or Independent Marketing Organization or other producer at the
top of agent’s hierarchy is responsible for ensuring that each producer in the down line is appropriately
trained. This training requirement is fulfilled when such agent, agency or Independent Marketing
Organization has each sub-producer (1) review the NAIC Life Illustrations Procedures Questions &
Answers and 2) begin to use the most current version of our Illustration Software. The Q&A explains
terminology agents must know, as well as, explains the life administrative procedures that are effective
the date the state has adopted the model regulation.
This new regulation in essence does two things. First, it requires companies to certify that their life
products as illustrated are appropriately estimating company expenses (ANICO uses the Fully Allocated
Expense Method) and companies may no longer illustrate plans that fail new lapse support tests
and self-support tests. Second, the company is required to use a new illustration format in which
policyowner signed illustrations are filed at the Home Office. If an illustration is used, agents must
submit a signed illustration with the life application. The new version of the software provides you this
new formatted illustration. Otherwise, form #4528 must be signed and submitted with the application
when selling with a notebook computer or when the sale was made without an illustration.
As a state adopts the model regulation, the new requirements cause some plans of insurance to
be removed from that states list of approved life products. A list of the plans currently available for
solicitation in each state may be obtained from the IMG Web site, www.img.anicoweb.com.
Procedure for Compliance with NAIC Life Illustration Model Regulation
The purpose of this procedure is to assure compliance with the NAIC Life Illustration Model Regulation
that has been adopted by most states. The following procedure was adopted at the June 9, 2003 Senior
Compliance Committee meeting. The procedure was implemented effective Monday, September 1,
2003.
Procedure:
1. Upon receipt of an application for a life insurance policy subject to the requirements of the NAIC
Life Insurance Illustration Model Regulation, the Life New Business Department will review the
application file for completeness.
2. If the application file is “incomplete” because it does not contain a properly signed basic illustration
or certification that an illustration was not used, a letter will be sent to the agent giving the agent 20
days to provide the appropriate documentation to Life New Business Department. If the required
documentation is not provided to Life New Business Department within the 20 day period, the
application and premium will be returned with an appropriate letter to both the agent and the
applicant that the application is incomplete and closed.
3. If the application file is “complete” and an illustration was used at the point of sale and the policy
is issued other than as applied for, or if the illustration was only shown to the applicant via a laptop
computer (Form 4528), a revised basic illustration will be sent with the policy to the agent for
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Illustration Practices 46
For Agent Use Only; Not for Use with Consumers
delivery and to obtain the necessary signatures on the revised illustration that must be returned to
the Life New Business Department within 30 days.
4. If the application file is “complete” but no illustration was used at the point of sale, upon issuance
of the policy a basic illustration will be sent with the policy to the agent for delivery and to obtain
the necessary signatures on the basic illustration that must be returned to the Life New Business
Department within 30 days.
5. If under scenarios 3 or 4, the agent has not returned the properly signed revised illustration or the
basic illustration to the Life New Business Department within 30 days of the issuance of the policy,
upon the 30th day the Life New Business Department will send by first class U.S. mail a copy of
the revised illustration or the basic illustration directly to the policy owner. An appropriate letter will
accompany the illustration instructing the policy owner to sign and return the numeric summary
page of the illustration to the Company. A Company addressed, postage prepaid envelope, will
be provided for the policy owner to use to return the numeric summary page. The agent will be
provided a copy of this letter. If the policy owner does not respond to this letter by returning the
numeric summary page, the Company will consider that it has made a diligent effort and will not
take any further action.
NAIC Life Illustration Procedures Questions And Answers
ATTENTION: Agents, Brokers, Independent Marketing Group and other producers appointed with
American National Insurance Company. The NAIC adopted the Life Insurance Illustration Model
Regulation effective January 1, 1997. As the various state insurance departments approve this
regulation, every application submitted to the Home Office completed in those states must include a
signed illustration. The purpose of this regulation is to provide rules for life insurance policy illustrations
that will protect consumers and foster consumer education. The regulation provides illustration formats,
prescribes standards to be followed when illustrations are used, and specifies the disclosures that are
required in connection with illustrations. The goals of this regulation are to ensure illustrations do not
mislead purchasers of life insurance and to make illustrations more understandable.
Q. What is an illustration?
A. Any presentation or depiction that includes non-guaranteed elements of a policy of life insurance
over a period longer than one year is considered an illustration. This means any values shown beyond
the first year would have to meet the illustration requirements of the regulation except for “Non-Term
Group Life.” Some practices that are no longer acceptable are hand written worksheets with estimated
life product values, brochures with sample ages and non-guaranteed values, quotation material such as
premiums and cash values for a given age, illustrations on laptop computers without proper disclosure,
and internet marketing.
Q. What type of policies does the illustration regulation apply to?
A. It applies to all group and individual life insurance policies and certificates except Variable Life
Insurance, Individual and Group Annuity Contracts, and Credit Life Insurance or Life Insurance Policies
with illustrated death benefits which at no duration or under any condition exceed $10,000 on any
individual.
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Illustration Practices 47
For Agent Use Only; Not for Use with Consumers
Q. When is a basic illustration required?
A. Anytime a client is shown non-guaranteed values beyond the first year, a basic illustration is required.
For instance, if an agent runs an illustration on a laptop computer, the agent must either have a basic
printed illustration for the client or proper disclosure.
Q. Is it permissible to show an illustration conforming to the model requirement on a computer
screen, and obtain the signature at the policy delivery?
A. Where a computer screen illustration conforming to the regulation is used and no hard copy is
furnished at the time of application, an acknowledgment, signed by the applicant and agent, should be
obtained and submitted with the application.
Q. Must the agent use software?
A. No, but no other form of illustration can be used. Rate books, if values are shown beyond the first year,
hand calculations, etc., are no longer acceptable if shown to the client. In the case where no illustration
is used, a form must be signed by the applicant and the agent indicating no illustration was used.
Q. What are the agents responsibilities when submitting an application to the home office?
A. The agent sends in a signed basic illustration which matches the information on the application, or
a signed company form which states no illustration was used in the sale. The signature page requires
both the agent’s and client’s signatures. Here is an example of how it would work: At the time of sale,
the agent would complete an application, complete all state required forms, have the client review and
sign a copy of the illustration and forward all items to the Home Office. At the moment the policy is
issued, there would be a comparison between the illustration and what was issued. If there were no
material changes, the policy would be issued and no further requirement would be needed. If there
was a material change, a Revised Illustration would be issued with the contract. Upon receipt, the
agent would have two choices: 1) Get the applicant to sign the Revised Illustration accepting the policy
along with the changes, or 2) Create a new illustration depicting the changes, but tailoring it to the
client’s original needs. One of these documents would then be signed by the applicant and agent and
forwarded to the Home Office so that the policy contract could be activated.
Q. What constitutes a “material change”?
A. Any difference between the application and illustration which would cause the values produced by
the illustration to change i.e. a mode change, an underwriting class change, an additional benefit etc.
Q. How will agent or broker produced illustrations comparing several companies side by side
be impacted by this new model?
A. Any effort to sell a particular product policy would require the agent or broker to provide the illustration
required by the model regulation. (Section 4H defines an illustration as “a presentation or depiction that
includes non-guaranteed elements of a policy of life insurance over a period of years.” If non-guaranteed
elements were included in the side-by-side comparison, the provisions of the regulation must be met.
Section 11F (1) required that an officer of the company certify that the illustration formats meet the
requirements of the regulation. Therefore, it is entirely inappropriate to show the non-guaranteed
premium in any manner other than as part of a basic illustration and, if useful, a supplement illustration).
Q. If a new illustration must be signed at the time of delivery, will this prevent commissions
from being paid until it is received by the home office?
A. Commissions will not be delayed unless the change that generated the new illustration also generated
an NIA (not issued as applied for) such as an underwriting class change.
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For Agent Use Only; Not for Use with Consumers
Q. If a new illustration is produced by the home office , will it indicate the sales concept illustrated
by the agent i.E. Loans, withdrawals etc.?
A. No, the generic illustration produced with the policy will be shown without any changes from issue.
As explained earlier, if the agent wishes to return the illustration with the original sales concept included,
this is acceptable as long as all other home office changes are depicted as well.
Q. Can a faxed copy of the illustration be presented to the applicant or a policy owner?
A. Yes. Nothing in the regulation requires an originally printed illustration.
Q. If an agent illustrates at issue a change in benefit, such as a face amount decrease after 5
years, does the company have to automatically make the change when the change date occurs
or can the company wait for the policyholder to request the change at that future date?
A. The inclusion of a future benefit reduction in an illustration does not, by itself, obligate or authorize
the insurer to implement the benefit reduction. The agent or client will need to request the change at
the time requested.
Q. Suppose a prospect asks a sales person to illustrate a universal life policy where the applicant
plans to pay an annual premium of $2400 until retirement at age 62, after which the applicant
plans to reduce the annual premium to $100. If a conforming illustration is delivered with the
policy at issue , must the illustration show the plan premium reduction at age 62?
A. Yes. Section 7E(1) of the model regulation indicates the tabular detail will need to be shown (except
for term insurance beyond the 20th year) for any year in which the premium outlay is to change.
Q. In some cases multiple supplements or illustrations are prepared and shown to a client to
help evaluate different scenarios. Must each of these be accompanied by a basic illustration,
and if so, does each need to be signed and submitted with the application?
A. Generally, one basic illustration can accompany several supplemental illustrations. The contract
premium or premium outlay underlying the supplemental illustrations must be equal to the premium
outlay shown in the basic illustration. The basic illustration matching the policy applied for should be
signed and submitted with the application.
Q. Usually it is not known if a proposed insured is in a preferred class until after the application
is submitted and the underwriting process is complete. If the initial illustration was done at the
standard class, but the final determination is preferred, must the policy be re-illustrated?
A. Yes, the illustration must conform to the policy issued.
Q. If a client buys a policy in a state that has not adopted the regulation, then moves to a state
that has, which state’s regulations govern in force illustrations?
A. Generally, contract law would require use of the law in the state were the contract was made.
Q. Can agents write down guaranteed values only for a client on an illustrated policy as long as
they get a compliant illustration before or at the time of policy delivery? Can an illustration show
guaranteed values for a policy that has non-guaranteed elements described in the policy form?
A. Showing guaranteed elements only, as that item is defined in the model, does not constitute an
“illustration”. Providing a compliant illustration at the time of policy delivery would be required if the
policy form is one designed to be used with the illustration.
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Illustration Practices 49
For Agent Use Only; Not for Use with Consumers
Key Points to Follow When Preparing and Providing Life Sales Illustrations:
• The agent should always provide a sales illustration. In the states that have adopted the Life
Illustration NAIC Model Regulation, the agent must use an illustration that complies with the model
regulation as stated previously, or he/she must attach a signed form 4528 to be submitted with the
application for life insurance when selling the policy with a notebook computer or when the sale
was made without an illustration.
• The agent should use the current version of the software and current assumptions regarding any
adjustable factors (dividends, interest, expense and mortality). • The agent should provide the complete illustration. All pages produced as part of the illustration
should be included in your presentation.
• The agent should make no alterations to the illustration. If an error in producing the illustration
occurs, the illustration should be rerun with the correct input and the incorrect illustration should
be destroyed.
• The agent should submit a copy of the sales illustration with the application to American National.
A copy should be retained by the agent in the agent’s client file.
• If the policy ultimately differs from the illustrated scenario (e.g. age change, substandard, different
face amount), a new illustration must be provided, by the agent to the client, at policy delivery. The agent should request that the first illustration be returned or he/she should obtain written
acknowledgment of the change in circumstance warranting the new illustration.
In addition to proper preparation of sales illustrations, proper presentation to the client is critically
important. The agent should carefully and thoroughly review the illustration with the client to ensure
that the illustration correctly represents the client’s needs and is accurate. The agent should take
special care to ensure that the client fully understands all aspects of the illustration.
Key Points to Follow When Presenting an Illustration to a Client:
• The agent should clearly indicate that the product illustration is a life insurance policy. Most
jurisdictions prohibit representing a policy as an investment vehicle, savings plan, savings account
or similar financial instrument.
• Premiums should not be referred to as payments or deposits, but as premiums.
• The agent should indicate which values are guaranteed and which are based on non-guaranteed
factors. The agent should ensure that the client understands the distinction and is made aware
of the impact on the proposed insurance plan. This includes coverage that will cease or when
additional premiums may be required.
• If a suspended premium illustration is used for participating policies, the agent should make sure that
the client understands that this is dependent on the assumed dividend payments. Any decrease in
dividends would require that additional premiums be made to keep the policy in force.
• If any supplemental information is included with the illustration, the agent should ensure that it
matches the basic illustration values. The agent should refer the client to the guaranteed values in
the basic illustration.
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• The agent should review the assumptions and/ or input items with the client.
• The agent should ensure that the client reads the footnote pages and understands them.
• When placing the policy, the agent should compare the data page with the illustration for
discrepancies. A new illustration should be prepared by the agent if there are any differences to
correct.
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Illustration Practices 51
For Agent Use Only; Not for Use with Consumers
Section Four: Licensing & Commissions
Licensing Procedures
American National Insurance Company
Independent Marketing Group
Pre-Hiring Guidelines
• Credit checks, State Department of Insurance checks, background investigations and criminal
history checks are conducted on every applicant. Background investigations and criminal history
checks should be processed immediately.
• Bankruptcy & Collections - One bankruptcy (discharged) would not eliminate an applicant. However, an applicant with multiple bankruptcies and a current history of credit problems may be
rejected. Unresolved collection items would also be a consideration as a possibility for rejection.
• Current Bad Debt - If a substantial portion of the accounts listed on the credit report (more than
30%) is 120 days or more past due then the applicant may be rejected.
• Tax Liens - The applicant will not be rejected for a tax lien that appears on an investigative report if
the lien has been satisfied. If the lien is not satisfied, proof of a satisfactory payback arrangement of
the lien must be submitted to the company along with an explanation of the cause or the applicant
may be rejected. If an applicant has a current garnishment, the applicant will not be considered
for contracting until such time as the garnishment is released and proof of such a release is on file.
• Debit Balances - The Vector One System is used to verify outstanding debit balances that an
applicant may have with other companies. If the verification process (includes contacting company
involved) reveals a debit balance without a satisfactory payback arrangement and/or multiple debit
balances with more than one company, the applicant may be rejected. (Vector One is a database
containing names, social security numbers and Federal Tax ID numbers of thousands of producers
who either have a debit balance with a Vector One subscriber or a low 13th month persistency rate.)
• Credibility - If an applicant is found to be dishonest in response to any question on the application
to represent American National, or if there is any question as to the applicant’s integrity as a
consequence of a response, the applicant may be rejected.
• Errors & Omission Coverage - Applicant is required to have E&O Coverage (Solicitor applicant
does not require E&O).
• Convictions - Any applicant who has been indicted or convicted of a felony will be rejected. This is
in compliance with the Violent Crime and Control Act of 1994. This law prohibits any insurer from
willfully allowing such a person to participate in the business of insurance. Misdemeanors will be
reviewed and may result in rejection of applicant.
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Licensing & Commissions 52
For Agent Use Only; Not for Use with Consumers
• Insurance Department Complaints - Extensive, unresolved and/or unfavorable information on file
with a State Board of Insurance may cause the applicant to be rejected.
• An officer of Independent Marketing will determine any exceptions to these guidelines.
The Agent is Responsible for the Following Requirements:
• To renew all applicable licenses.
• To stay in compliance with any Continuing Education requirements set forth by the State Insurance
Departments.
• To notify the State Insurance Departments, as well as American National, of any change in residence
address or name.
• To notify American National of any Insurance License that you have canceled, or if the license has
been canceled by the State Department of Insurance.
• To be appointed with American National in the resident state, as well as in any non-resident state, in
which he/she intends to solicit business for the company. If the agent has sub-producers appointed
with the company, he /she must also be appointed in the states in which they are soliciting business
for which the agent is to receive an override.
• Maintain E&O coverage (not required for solicitors).
• Complete Company Anti-Money Laundering requirements (See Compliance Section).
• American National currently pays for resident appointment fees. American National currently pays
to renew the agent’s appointment, as long as the agent’s life/annuity production is satisfactory to
the Company.
Each jurisdiction regulates agent solicitation, application signing and commission payments through
licensing and appointment requirements. American National must comply with these regulations
without exception. Where the required procedures are not followed, agents as well as clients can be
severely inconvenienced. In addition, American National can face punitive action by the regulators.
In order to avoid this, and because regulations may periodically change, we are providing a current
summary of regulations by state.
Effective the date paperwork is mailed to the state
In the following states the agent appointment is effective the date the appointment paperwork is
mailed to the state by American National.
• California - 14 days
Effective date signed by the insurer or forwarded to state, but insurer can accept business as
long as it is dated within 14 days from the date the appointment is mailed to the Department of
Insurance.
• Puerto Rico
Producer may solicit immediately upon contracting w/ insurer. When an insurer enters into a
contract with a producer, the effective date of the appt is the same as effective date of contract.
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Licensing & Commissions 53
For Agent Use Only; Not for Use with Consumers
• Pennsylvania
Producer may solicit immediately upon contracting w/ insurer. When an insurer enters into a
contract with a producer, the effective date of the appt is the same as effective date of contract.
Simultaneous Submission States
In the following states the appointment for a licensed agent must be received by the Department
of Insurance within a specified number of days from the date the Policy Application was signed, in
order to be in compliance with solicitation and signing requirements:
Alabama
15 days
Louisiana
15 days
Ohio
30 days
Alaska
30 days
Maine
15 days
Oklahoma
15 days
Arizona
*
Maryland
*
Oregon
*
Arkansas
15 days
Massachusetts
15 days
Rhode Island
*
Colorado
*
Michigan
15 days
South Carolina
15 days
Connecticut
15 days
Minnesota
15 days
South Dakota
15 days
Delaware
15 days
Mississippi
15 days
Tennessee
15 days
District of Columbia 30 days
Missouri
*
Texas
30 days
Florida
***45 days
Montana
15 days
Utah
15 days
Georgia
15 days
Nebraska
15 days
Vermont
15 days
Hawaii
15 days
Nevada
15 days
Virginia
30 days
Idaho
15 days
New Hampshire
15 days
Washington
15 days
Illinois
*
New Jersey
15 days
West Virginia
15 days
Indiana
*
New Mexico
15 days
Wisconsin
15 days
Iowa
30 days
New York
15 days
Wyoming
15 days
Kansas
30 days
North Carolina
15 days
Kentucky
15 days
North Dakota
30 days
If policy application is submitted to the Home Office with an applicant’s file, indicate at the bottom of
the Checklist, Form 4980, that policy application is included.
*
Indicates this is a producer state where no company appointment is required. Business may
be submitted with the contracting and licensing paperwork directly to the Home Office. The agent’s
current, active producer license must accompany the application for business.
**
Producer may solicit immediately upon contracting with insurer. When an insurer enters into
a contract with a producer, the effective date of the appointment is the same as effective date of
contract.
*** Can submit application prior to appointment being processed by insurer, but no commissions
shall be paid by insurer until appointment has been received by DOI.
Note:
• Commissions cannot be paid to agents until they become appointed. This is applicable to all states.
•
Particular attention should be paid to the regulations for each state that an agent and his/her subproducers are writing business. American National is not obligated to accept any business that is
not in compliance with state regulations.
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Licensing & Commissions 54
For Agent Use Only; Not for Use with Consumers
Contracting Procedures
Fixed Contract Only
(Does not apply to Variable Contract)
This information is also available with appropriate forms at our Web site: Contracting.
The following documents are required for contracting/appointment:
1. File Requirement Checklist, Form 4980 (ANY-4980 for NY). Hierarchy must be listed at the bottom
of the Checklist.
2. Applicable Producer Agreement (Agent, GA, SGA or RGA) Return signature page only and provide
all information requested on signature page.
3. For Solicitor - Solicitor Appointment, Form 9035 (ANY-9035).
4. Application to Represent American National, Form 3779 (ANY-3779).
5. Production Requirement Agreement - Current year (required for RGA and SGA).
6. Proof of Errors & Omission Coverage - copy of declaration page (not required for Solicitor).
7. Fair Credit Reporting Act Disclosure, Form 4708 (ANY-4708) (required by The Fair Credit Reporting
Act).
8. Applicable Compensation Schedule - 1 copy.
9. For Florida appointment a list of all counties in which applicant will solicit business (non-resident
appointments only).
10.For Virginia Appointment a copy of signed Insurance Activities Requiring Persons to Be Licensed
in Virginia (939-A-M).
11.Check for Non-Resident License Appointment Fees (non-contiguous states only). If faxing file,
check must be mailed with a cover letter listing Applicant Name and Social Security Number.
12.Anti-Money Laundering - Applicant must complete required AML training or provide proof of
completion of a company approved training course. (See Checklist, Form 4980 and Form 1770 /
ANY-4980 & ANY-1770 for NY).
13.New Business - If contract is for Simultaneous Submission State and New Business is included list
the New Business Application Date on the Checklist. If New Business is submitted with contract,
file must be mailed. A postage paid return envelope is available for this purpose. Do not Fax New
Business.
Contracts may be mailed or faxed to the Life Producer Services Department
(See Checklist, Form 4980 / Form ANY-4980 for NY).
The Following documents must be given to the applicant at the time of contracting:
• Producer’s Code of Conduct, Form 4516 (ANY-4516 for NY)
• Advertising Guidelines, Form 4512 (ANY-4512 for NY)
• Notice of Privacy Policy, Form 4977 (ANY-4977 for NY)
• Company Guide to Anti-Money Laundering, Form 4475 (ANY-4475)
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For Agent Use Only; Not for Use with Consumers
• Direct Deposit information, Form 4589 (ANY-4589) (not required for solicitor)
• Anti-Money Laundering Compliance, Form 1770 (ANY-1770)
Remember to have all documents signed by the appropriate parties before submitting to
American National.
All forms listed above may be ordered from the Supply Order section of our Web site or through our
Field Support Center, 1-888-501-4043 (1-877-755-2667 for New York Producers).
The Independent Marketing Group offers online submission of new contracts
through nomoreforms and Efficient Forms.
• nomoreforms - Access codes are required in order to use nomoreforms. These codes, as well as
information regarding nomoreforms, can be obtained by contacting your marketing distribution of
Independent Marketing. Once you’ve obtained correct access codes, you may complete contracting
paperwork at www.nomoreforms.com. nomoreforms gives you access to all forms required to
complete a contracting packet, thereby expediting the contracting process. No special hardware or
software is required, and, the best part is, you only need to answer a question once!
• Efficient Forms - For marketing organizations that are customers of Efficient Forms, you may submit
contracting information to American National through Efficient Forms. That process is seamless
and straight through from Agent to Distributor to American National and back. The Efficient Forms
system walks the producer through a set of interview questions, which compiles the information
required, then sends it to American National for processing. For more information about Efficient
Forms, LLC, you can visit www.efficientforms.com.
If you have questions about these contracting procedures, contact your Marketing Organization
or call Independent Marketing Group’s Field Support Center at 1-888-501-4043, Option 1 or 1-877755-2667 for New York Producers.
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Licensing & Commissions 56
For Agent Use Only; Not for Use with Consumers
Contracting Checklist For Broker-Dealers
American National Variable Products
❏ Broker Dealer Selling Agreement (3 original signatures)
❏ Broker/Dealer Fact Sheet
❏ CRD Report
❏ Addendum (Use if Additional Agencies are Included in Agreement)
❏ Agency Fact Sheet (If Agency is Incorporated as Separate Entity)
❏ Copy of Applicable State Licenses
American National Fixed Products
❏ Two Regional General Agent Agreements
❏ Application to Represent
❏ Credit Authorization
❏ Copy of Applicable State Licenses
Mail all information to:
American National Insurance Co.
Broker Dealer Marketing
One Moody Plaza, 9th Floor
Galveston, TX 77550
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Licensing & Commissions 57
For Agent Use Only; Not for Use with Consumers
Contracting Checklist for Registered Representatives
American National Variable Products
❏ License Appointment Data Sheet
o Signed By Registered Representative
o Signed By Broker Dealer
❏ CRD Report
❏ Credit Authorization
❏ Copy of Applicable State Licenses
American National Fixed Products
❏ Two General Agent Agreements or Two Special Agent Agreements
❏ Application to Represent
❏ Credit Authorization
❏ Copy of Applicable State Licenses
Mail all information to:
American National Insurance Co.
Broker Dealer Marketing
One Moody Plaza, 9th Floor
Galveston, TX 77550
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Licensing & Commissions 58
For Agent Use Only; Not for Use with Consumers
Commissions
• American National pays commissions every week. Direct deposit of the agent’s commissions
are made each Thursday to the agent’s bank that was specified by the agent when he/she was
contracted with the Company, with receipt guaranteed by the following Friday. A Commission
Statement and Deposit Advice containing policy detail and earnings/deduction information, for each
direct deposit, is available through e-agent. Direct deposit is mandatory.
• Inactive agents are paid once a month, if they are eligible, by contract, to receive commission
payments after termination of contract. Direct deposits are made on the third (3) Thursday of the
month, with receipt guaranteed by the following Friday and a Commission statement and Deposit
Advice, containing earnings/deduction information, is mailed to the agent. Commission checks
are mailed on the third (3) Thursday of the month for those inactive agents who are not on direct
deposit.
• Agents may also contact IMG’s Field Support Center for this information at 1-888-501-4043, option 1
or 1-877-755-2667 for New York Producers. • Commissions must total $50.00 before commissions are paid.
• Agents may also check commission status via E-agent at our Web site.
Licensing, Contracts and Commissions Information for
American National Insurance Company
Phone:
1-888-801-8845
Fax: 1-866-568-0449 (Contracting)
(409) 766-2988 (Commission)
Licensing, Contracts and Commissions Information for
American National Life Insurance Company of New York
Phone:
1-888-861-7303
Fax: 1-866-568-0449 (Contracting)
(409) 766-2988 (Commission)
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Licensing & Commissions 59
For Agent Use Only; Not for Use with Consumers
Section Five: Supplies
Ordering Supplies on the Web Site
1. On the home page of the IMG website (www.img.anicoweb.com), scroll over E-Resources, then
click on Supply Order.
2. After clicking on Supply Order from the home page, the agent will click on “Standard Supply Order”
if ordering in a state other than New York. If the agent is in NY, they will need to click “New York
Supply Order.”
3. Agent needs to click on Marketing Supplies or State Required Forms of both if needed.
4. The Marketing Supplies are divided by type of products. Agents may click on the link to the type
of product they need and will be taken to that section of the online supply form. The agent should
place a “check mark” next to the items they wish to order and enter the number of packages
needed. Quantity of the supply is listed. When all items have been ordered the agent should hit the
submit form button.
5. This will bring them to the Supply Order Verification screen. Agent has the option to Clear Order,
Clear Item, Cancel Order or Finish Order. Agents can also add additional material(s) to their order if
needed.
6. After hitting the “Finish Order” button they will be taken to the Shipping Information screen. Agent
must list the following information.
• Name
• Street Address – No deliveries to PO Boxes
• Agent Number/SSN
• City
• State
• Zip
• Phone
• Email address
Agent should also notify us if back-ordered items are acceptable.
7. Hit the Process Order button. The agent will receive an order number as well as contact information
to the Field Support Center.
8. Once the marketing material is ordered, then the agent can proceed to order State Required Forms. Agents will need to check the box under Annuity Forms or Life Forms , then select the appropriate
state. All state required forms come in packages of 10.
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Supplies 60
Ordering Supplies by Phone
Contact IMG’s Field Support Center at 1-888-501-4043, option 1 or 1-877-755-2667 for New York
Producers. Agent should have his/her Personal Code available when calling.
Note:
1. Supply orders will be shipped using ground shipping through UPS. Please allow 7-10 business
days for delivery. If you require another shipping method please contact the Field Support Center
at 1-888-501-4043, option 1.
2. The cutoff time for supply orders is 3:00 p.m. central. Any orders received after 3:00 p.m. will be
processed the next business day.
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Supplies 61
Section Six: Ethics
Business Conduct and Ethics Guidelines for Agents Appointed
with American National Insurance Company
American National Insurance Company is totally committed to customer service of the highest
quality. This commitment enhances our integrity with our clients and associates. Ethical conduct,
professionalism, and dependability reinforce trust.
Trust is harder to earn from consumers in today’s financial services environment. Bank failures, Wall
Street scandals, and even insurance company failures have shaken the trust of many consumers in
financial institutions. In addition, we are operating in an environment where litigation is often the first
choice for resolution of conflict. Consequently, the insurance industry is governed by a multitude of
state regulations dealing with advertising, unfair trade practices, disclosure and replacement. We must
comply with these regulations.
Failure to comply may result in fines, penalties, agent investigations, market conduct
examinations, litigation, punitive damages and revocation or suspension of license to do
business, as well as company sanctions imposed on agents as a result of unethical actions.
To achieve our goals as a company and protect our assets, as well as the assets of our clients entrusted
to us, it is imperative that all American National sales representatives follow our published standards,
comply with all insurance laws and regulations, and consistently behave in an ethical manner.
Ethics are defined as the rules and standards of conduct governing the members of a profession. It is
also defined as the study of the general nature of morals and the specific moral choices an individual
makes in relating to others. To guide you as an agent, we are providing you with key points on the
following pages to ensure ethical behavior.
American National and Market Conduct
In past years, the actions of a few agents and insurance companies have caused the insurance industry
to come under intense scrutiny and criticism. In an effort to stem the increasing tide of unfavorable
publicity and, potentially, more restrictive legislation, the industry is focusing much more on ethics in
the marketplace.
American National Insurance Company’s Board of Directors adopted the following Principles of Conduct
on April 26, 1996:
American National Insurance Company Principles of Conduct
Resolved, that in the pursuit of the goals set forth in the Company’s Mission Statement, the conduct
of the Company’s business shall be characterized by the following:
I.
Honesty, integrity and fairness.
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Ethics 62
II.
Reasonably priced products and services designed to meet the needs and desires of the Company’s customers.
III.
Sales and advertising materials that are clear, honest and fair.
IV.
Service to customers, including the resolution of complaints and disputes,
that is prompt and courteous.
V.
Oversight of home office and field activities to assure compliance with this Code and the laws and regulations of the states in which the Company operates.
Producer’s Code of Conduct
• As a representative of the American National family of companies I recognize my responsibility to:
• Conduct myself in the highest character with honesty, integrity, and fairness at all times.
• Provide information to clients in a professional manner which is honest, relevant, and designed to
meet the client’s needs.
• Understand and accurately represent the Company’s products and services.
• Ensure my personal interests do not conflict with those of clients or the Company.
• Render prompt and quality service both before and after the sale to clients and their beneficiaries.
• Learn and follow all Company policies and procedures related to my role as a producer.
• Keep informed with respect to applicable laws and regulations and to observe them in the practice
of my profession.
• Replace a life insurance, health insurance, or a financial product of a client, only when it is in the
client’s interest.
• Foster good will, courtesy, and consideration in the treatment of policyowners and the general
public, while maintaining respect for the Company.
• Meet all continuing education requirements.
• Conduct business according to high standards of honesty and fairness and to render that service to
its customers which, in the same circumstances, it would demand for itself.;
• Provide competent and customer-focused sales and service;
• Engage in active and fair competition
• Provide advertising and sales materials that are clear as to purpose and honest and fair as to content;
• Provide for fair and expeditious handling of customer complaints and disputes;
• Maintain a system of supervision and review that is reasonably designed to achieve compliance
with these Principles of Conduct.
Full Disclosure
Full disclosure is the key to selling life insurance products in today’s marketplace. When an agent fully
explains the benefits of the policy, as well as the limitations and exclusions, he or she builds trust with
the client. Full disclosure gives the agent peace of mind in knowing that every effort was made to fully
explain the policy that was sold.
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Ethics 63
Full disclosure also applies to the agent appointed with American National. It is the duty of the American
National agent to inform the company of any material facts the company needs to know to protect
itself. A fact that is material to the risk is a fact which would influence American National’s decision to
issue the applied-for original or reinstated policy.
The Agent should follow these guidelines in ensuring full disclosure to the client:
• Ensure that the client receives and understands the Policy Summary and Buyer’s Guide that
American National provides with the policy.
• Always inform the client prior to a sales presentation that you are acting as a life insurance agent
and inform the client that the application is being taken with American National.
• Do not use terms such as financial planner, financial consultant, or financial counseling in a way to
imply that you are in some other business than insurance sales.
• When referring to dividends, always state that dividends are not guaranteed.
• Do not suggest that a policy is self-supporting or that projected dividends will fund the policy and
suspend further premium payments.
• Do not use the existence of any state’s Guarantee Association for the purpose of inducing the
purchase of insurance.
• Always identify the product as insurance. Do not lead the client to believe that he/she will receive
something other than life insurance, such as an investment.
• Do not fail to explain that insurance cost indexes are useful only for the comparison of the cost of
two or more similar policies.
• Do not present benefits showing guaranteed and non-guaranteed benefits as a single sum unless
they are also shown separately in the same area of presentation.
Unfair Trade Practices
It is important to be aware of what is considered an unfair trade practice when soliciting life insurance.
Unfair trade practices can occur in many different situations. The following list gives definitions of
various forms of unfair and deceptive practices. Failure to conduct business in an ethical manner affects
the client, agent, company, and the insurance industry as a whole. In today’s regulatory environment,
it is imperative that everyone concerned with the sale of insurance products do everything they can to
conduct their business ethically.
Misrepresentation
Misrepresentation is making, issuing, or circulating any estimate, illustration, circular or statement,
sales presentation, or comparison which misrepresents the benefits, advantages, conditions or terms
of any insurance policy. This includes:
• Misrepresenting or guaranteeing the dividends to be received on any insurance policy.
• Making false or misleading statements as to dividends previously paid on any insurance policy.
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Ethics 64
• Making misrepresentations as to the financial condition of any insurer.
• Making misrepresentations for the purpose of inducing purchase, lapse, forfeiture, exchange,
conversion or surrender of any insurance policy.
•
Misrepresenting any insurance policy as being shares of stock.
Defamation/Disparaging Remarks
Defamation is knowingly false communication which tends to harm the reputation of a person or
company so as to lower that person or company in the estimation of others and deter them from
associating with the person or company. It is an unfair trade practice to make knowingly untruthful
remarks or written statements about a competing agent or the financial condition of the competing
insurance company.
Rebating
Rebating is when an agent offers a portion of his/her commissions (or something of value) as an
inducement for the sale of a policy. State regulations often define rebating as offering something that
is not specified in the policy (such as paying the premium on the policy) as an inducement for sale. American National does not condone rebating outside of specific rules set up by regulators where such
activities are allowed. Rebating is considered an unfair trade practice in the majority of states.
Twisting
Twisting is defined as the practice of making misrepresentations or incomplete or fraudulent comparisons
to induce a person to replace his/her insurance coverage with another insurer without consideration of
the possible disadvantages to the policyholder.
Churning
Churning is defined as a practice whereby policy values in an existing life insurance policy are used
to purchase another insurance policy with the same insurer for the purpose of earning additional
premiums, fees, commissions, or other compensations without an actual and demonstrable benefit to
the policyholder.
Forgery
Forgery is committed by signing another person’s name to a document with the intention of deceitfully
and fraudulently presenting the signature as genuine. It is American National’s policy to reject all
documents containing any forged signatures.
Fair Competition
Fair Competition is based on the elements of price, quality, and service subject to federal and state
antitrust laws and state insurance laws and regulations. Focus on fair competition can identify certain
negative practices to be eliminated, such as inappropriate replacement and disparaging of competitors.
Unfair Competition
Unfair Competition is the antithesis of fair competition as defined above. Unethical, dishonest, false
or fraudulent rivalry in the business of life insurance, particularly related to improper practices that
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Ethics 65
endeavor to substitute one insurer’s products or services in the market for those of another insurer.
Some unfair competition practices have been specifically identified and addressed in federal antitrust
and trade practices law and regulation (with corresponding state laws on those same subjects) and in
some states the NAIC model Trade Practices Act (as adopted in those several states).
Unfair Trade Practices (Act)
Unfair Trade Practices is an NAIC model act and its various forms as enacted by law or regulation in
most states, intended to assure appropriate market conduct in the business of insurance by addressing
unfair methods of competition and unfair and deceptive acts and practices. Specifically, this act defines
proscribed conduct in such areas as:
(1)
misrepresentations,
(2)
false information,
(3)
defamation,
(4)
boycott, coercion, and intimidation,
(5)
false statements and entries,
(6)
rebates, and
(8)
unfair financial planning practices.
Replacement
American National believes that in many instances it is not in the interest of the policyowner of this
or any other life insurance company to discontinue a policy already in force to buy a new policy. The
company also feels it is not in a policyowner’s interest to use funds from one contract to pay for another.
There are many reasons why this is true. Among them are: the policyowner would have to again
pay the initial costs of placing a new policy in force; there would be a new contestable period; the
systematic accumulations purpose of permanent cash value life insurance would be thwarted; and in
some instances the older policy may contain options and features which are more advantageous to the
policyowner than a new policy could offer.
Most states have regulations governing procedures which must be followed if new life insurance or
annuities are written to replace life insurance or annuities already in force with American National or
another company. These regulations usually require the agent provide the applicant a notice which
sets forth the disadvantages of replacement. Some states require a comparison form be completed
and sent to the insurer. The replacement regulations apply whether the suggestion for replacement is
initiated by the applicant or the agent.
American National believes that every agent should exercise great care in advising members of the
insuring public regarding their previously existing insurance. The interest of the policyowner is to be
kept uppermost in mind and should be the motive for every action taken.
Unethical replacement activity will be reviewed and sanctions imposed by the company accordingly.
Refer to Section 1: New Business, Replacements, pages 1-3 through 1-5 of this manual for
detailed information concerning Replacement and the Company’s Statement of Policy on Internal
Replacement of Life Insurance or Annuities.
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Ethics 66
Consumer Complaints
A Complaint is defined as a written or documented verbal communication received by an insurer or its
representatives which primarily expresses a grievance. They further define Complaint Handling as the
process by which an insurer records, tracks and monitors received complaints.
A Justified Complaint is a complaint where there is an apparent violation of a policy provision, contract
provision, rule or statute, or there is a valid concern that a prudent layperson would regard as a practice
or service that is below customary business practice.
Examples include:
•
•
•
•
•
The complainant has a reason to be dissatisfied with how the claim was handled;
The amount paid was less that it should have been;
The claim was denied when it should have been paid;
The claim was not handled timely;
The complainant was given poor customer service. For instance, the consumer’s repeated phone
calls to the company or agent are not returned, or the company or agent did not do what they told
the consumer they would do;
• The company’s position was not adequately explained;
• The premium was not calculated in accordance with Department of Insurance rules;
• The policy was not canceled according to policy or contract provisions, rules, or statutes.
An Unjustified Complaint is a complaint where there is no apparent violation of a policy provision,
contract provision, rule or statute, or there is no valid concern that a prudent layperson would regard as
a practice or service that is below customary business practice.
American National makes every effort to identify, evaluate and handle all complaints in compliance with
applicable laws and regulations related to consumer complaint handling. Consumer complaints should
be reported to the Corporate Compliance Department; Judy Regini, AVP; Phone: 1-800-392-0644; fax:
409-621-3932 or 409-766-6933; P. O. Box 1896; One Moody Plaza, Galveston, Texas 77550-7999. This
department maintains and provides a company Complaint Log to departmental heads on a monthly
basis.
You may contact the Texas Department of Insurance to obtain information on companies, coverages,
rights or complaints at 1-800-252-3439 or write to the Texas Department of Insurance at P. O. Box
149104, Austin, TX 78714-9104, Fax: 512-475-1771.
New York producers may contact the New York Department of Insurance to obtain information on
companies, coverages, rights or complaints.
Non-Compliance Market Conduct Activities Guidelines
Situations may arise from time-to-time involving market conduct activities and ethical behavior of the
company or its representatives that cause you concern. Examples of non-compliance market conduct
activities include: 1) Defamation/Disparaging Remarks, 2) Rebating (in some states, 3) Twisting, 4)
Churning, 5) Forgery, 6) and Fair and Unfair Competition. (Definitions of these activities are listed in
the Unfair Trade Practices section of this manual, pages 6-6 through 6-8.) If you have concerns about
activities involving any of these areas please contact the Field Support Center in the Independent
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Ethics 67
Marketing Group at 1-888-501-4043 or 1-877-755-2667 for New York Producers. If, for any reason,
you feel the need to speak with someone outside of the Independent Marketing Group about your
concerns, please contact Judy Regini of the Corporate Affairs Department at 800-392-0644. Or, you
may write to them at American National Insurance Company, 1 Moody Plaza, Galveston, Texas 77550
All issues brought to the attention of these two individuals involving questionable, non-compliance
market conduct activities will be handled in a manner to assure as much privacy and confidentiality as
possible for all parties involved. Additionally, American National will not tolerate any form of retaliation
against those who avail themselves of this process.
The following definitions are terms relative to market conduct activities:
Market Conduct: The way that insurance companies conduct their business with their consumers,
producers and communities. This includes issues of compliance, ethics, disparagement, fair and unfair
competition.
Compliance Function: Compliance Function is all of the actions of an insurance company taken to reasonably
assure that it adheres to state and federal laws and regulations affecting the way it does business.
Ethics: Ethics as it relates here, means dealing fairly and morally with all persons with whom one does
business. It requires doing the right thing.
Sanctions Alternatives For Market Conduct Violations
The American National family of companies expects its producers to maintain high ethical standards
in conducting their business. These standards are built around both the Principles and Code of Ethical
Market Conduct and the insurance laws and regulations of the various states in which the companies
transact business.
When an agent is found to have violated a statute or regulation, a provision of the agent’s contract
or one or more of these standards, an officer of the Company will review the details of the particular
violation. Following such review, based upon the severity of the violation, one or more of the following
range of sanctions will be imposed:
1. Discussion of the violation with the producer by either a Home Office representative or a member
of field management.
2. Written or verbal warning of further sanctions if requirements are not met.
3. Reduction in the commission percentage paid on the sale.
4. No commission paid on the sale.
5. Commission chargeback.
6. Probationary period for a specific time with specific requirements to be met, i.e., no complaints
within a six month period.
7. Temporary suspension of appointment.
8. Termination for cause with insurance department notification, if applicable.
9. Litigation.
Note: A written report of the imposition of any of sanctions 6 through 8 must be submitted to
Corporate Affairs within ten days after the action is taken.
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Ethics 68
Section Seven: Compliance
(Advertising, Do Not Call and Anti-Money Laundering Training Requirements)
General Advertising Procedures and Guidelines for Agents
Introduction
American National appreciates the time, effort and money producers invest on advertising the company’s
products. Quality advertising benefits everyone - the Company, the producer and the client. It benefits
the Company by promoting our products and services; the producers in their efforts to recruit and
generate new business; the client by providing valuable product information.
Insurance companies are experiencing heightened regulatory scrutiny regarding advertising and
company procedures to control it. Insurers and marketers are subject to severe consequences when
incomplete or misleading advertisements are utilized.
By working together with our agents, American National hopes to assist them in providing professional,
quality advertising which comply with state regulations. The advertising guidelines and procedures
provided in this manual should direct the agent in his/her advertising endeavors.
Advertising Defined
Regulations vary from state to state, but generally advertising is defined as any material designed to
create public interest in an insurer, its products or a producer. In this manual, we would like to take
the opportunity to relay to Marketing Organizations what specific materials are considered advertising,
what the producer must submit to Marketing Organizations and American National for approval prior to
use, and the procedures involved.
What must be reviewed and approved PRIOR to use includes
• All information passed to a prospective client (or a current client who may be targeted for additional
coverage) or
• All information passed to an agent for dissemination to current or prospective clients
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Compliance 69
WHEN THE PURPOSE OF THE INFORMATION IS TO SELL, RETAIN, OR MODIFY A
POLICY OF INSURANCE OR TO RECRUIT REPRESENTATIVES. This includes, but is
not limited to:
• Printed and published
material
• Circulars/leaflets/flyers
• Audio visual material and
descriptive literature used
in direct mail
• Recruiting materials
• Mailers
• Billboards
• Personal brochures
• Prepared sales talks
• Newsletters
• Presentations and
materials used by agents
• Advertising appearing on
the Internet/World Wide
Web/ and in chat room
“scripts.” This includes
internet referral and rate
quoting companies.
• Materials included with the
policy
• Booklets
• Newspaper ads
• Depictions, illustrations
• Magazine ads
• Telephone book/directory
ads
• Radio ads
• Form letters
• Telephone and television
scripts (tracks)
• Materials used to
solicit renewals and
reinstatements (unless
such are provisions in the
policy)
• Agent training materials
which include text, scripts,
handouts, etc., which are
used in sales presentations
• Direct mail letters
• Materials for sales training
or presentation prepared
by a third party (vendor)
• Generic sales materials
that are printed on
company letterhead. • Generic sales materials
that are mailed in company
envelopes.
Agents should understand that using unapproved advertising is a violation of state regulation,
American National corporate guidelines, and may be considered breaches of their contracts.
Even though most states do not require approval of ads directed to agents, if any part of those ads will
be directed toward a client with the goal of having them purchase coverage, they must be reviewed.
Agents are strongly advised to obtain a copy of the regulations in the state(s) in which they will sell
insurance to understand their full responsibilities.
Approvals
All Advertisements created in the field and targeted to clients, potential clients, current producers and
prospective producers must be approved in advance by the Independent Marketing Group (IMG) at
the top of the Agent’s hierarchy, and American National Insurance Company. In ALL cases, formal,
written approval, from Corporate Compliance, must be given by the Company’s Home Office, or an
advertisement cannot be used.
Failure to obtain ad approvals prior to ad publication can result in termination of a producer’s
contract and/or appointment with the Company. See Advertising Violations, section 4, of this
manual.
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Compliance 70
American National will need to see and approve any ad which:
• Refers to American National Insurance Company or American National Life Insurance Company of
New York.
• Refers to American National’s industry ratings and/or financials.
• Refers to any American National product.
• Refers to operational or administrative procedures of American National.
• Describes features of an American National product or the features of a product in such detail that
it can be identified as an American National product.
• Targets current or potential (recruiting ads) producers, if it has any of the features listed above.
• Is “attached” to or is part of a mailing or distribution of an approved American National ad.
The Approval Process
• The agent submits a camera ready ad to their Marketing Organization with an advertisement
approval form provided by their Marketing Organization.
• Their Marketing Organization reviews the ad and makes recommended changes, if any.
• Their Marketing Organization submits the ad to American National’s Independent Marketing Group
on an American National Advertising/Marketing Review Form, following procedures outlined in the
division’s Advertising Guidelines Manual for Marketing Organization.
• The Independent Marketing Group will review the ad and forward the ad for approval by the
applicable Home Office personnel and Corporate Relations/Compliance.
• Corporate Relations/Compliance will forward the approval to the Independent Marketing Group,
which in turn will forward either a written approval of the ad or recommended changes needed in
order for the ad to be approved, to the Marketing Organization.
• The Marketing Organization will forward the approval, or request for changes, to the producer.
If changes to the ad are required by the Home Office, the changes must be made and a corrected
copy submitted to the Home Office by the Marketing Organization within 30 days or the ad will
be considered withdrawn and canceled. Re-submission of the ad, after cancellation, will cause
the ad to be handled as a new ad.
Conditional Approval
The Corporate Relations/Compliance line is NOT signed. Instead, there is a notation in the comments
section of the approval form – with the initials of the reviewer. This means that the person can go to
print with the piece as soon as all noted corrections have been made. Conditional Approval will be
given an expiration date of 30 days. The person must send corrected copy within the 30 days in order
to receive full or final approval. Failure to make the corrections or to send the corrected copy would
violate these advertising guidelines.
Approval Time Line
The Compliance department reviews thousands of ads and other marketing material annually. The
Compliance areas are committed to reviewing marketing material expeditiously. Material that is
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Compliance 71
submitted for standard review will be reviewed within the time frames indicated below. Review time
is determined by the complexity of the material. Generally, material will be reviewed chronologically in
the order it was received. Because of unforeseen events and extenuating circumstances reviews may
on occasion require additional time.
Standard Review should be selected on the review sheet, and the number of pages should be indicated.
We commit to review Marketing Material submitted for Standard Review within the following turnaround times:
• Marketing Material that is less than five pages 1-5 business Days
• Marketing Material that is 5-10 pages 1-10 business days
• Marketing Material that is ten pages or more 1-15 business days
• (For example: training material, sales presentations, power point presentations).
• Marketing Material in excess of twenty pages 1-20 business days
(For example: training material, sales presentations, power point presentations).
If an officer requests a review by a specific date because of unexpected and extenuating circumstances,
Compliance will make every effort to accommodate the request. If corrections are necessary, once the
marketing area submits the revised material, it will be reviewed within 1-5 business days. Approval
will be given if all changes have been made as requested. If there are any outstanding issues, further
direction will be provided.
Note: When an ad requires filing with a particular state, American National will notify the Marketing
Organization so that this information can be communicated to the producer. Although approval of the
content of the advertising material may be approved by the Home Office, the material cannot be used
until approval is received from the state by American National.
American National is not responsible for delays caused by failure of the Marketing Organization
to submit an agent’s ad in a timely manner to the Home Office. In addition, it is the responsibility
of the Marketing Organization to notify the producer of an ad approval or corrections required
by the Home Office.
Pre-Approved Ads - Policy Statement for Use of Pre-Approved Ads
Pre-Approved Ads Where The Only Information That Varies Is
Name, Phone, Address, Etc.
• Ads may be prepared by the field force or by the marketing area.
• The marketing area will send the master copy of the ad through the full compliance review (that
review necessary based upon the information given in the ad). All information regarding specific
categories of publication media (newspapers, magazines, programs, etc.) where the ad may be
potentially used, must be included with the submission. However, it is not necessary to list the
actual publication names.
• Once the master copy is approved, it may be used for the time specified (certain ads will have preset expiration dates - such as those ads showing company financials. Some states require that
the company financials advertised must come from the most recent annual statement.) Unless
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Compliance 72
circumstances warrant otherwise, the marketing piece will expire within no more than one year of
its approval date.
• Any marketing piece that may appear in a national publication or that will be for use in all states
must meet the guidelines for national ads.
• The control number must appear on the ad for reference purposes.
Pre-Approved Ads Where The Information that Varies Is Product Specific (includes
such things as interest rates and such).
• Ads may be prepared by the field force or by the marketing area.
• The marketing area will send the master copy of the ad through the full compliance review (that
review necessary based upon the information given in the ad).
• Once the master copy is approved, it may be used for the time allocated (certain ads will have preset expiration dates - such as those ads showing company financials. Some states require that
the company financials advertised must come from the most recent annual statement.) Unless
circumstances warrant otherwise, the marketing piece will expire within no more than one year of
its approval date.
• Any marketing piece that may appear in a national publication or that will be for use in all states
must meet the guidelines for national ads. The control number must appear on the ad for reference
purposes.
• Field force is required to submit the ad to the marketing area for approval of the changes, but
approval from other compliance areas is not required unless their expertise is necessary. Once
approved, the original is sent to Corporate Affairs/Compliance to be logged in, verified against the
original, and kept in the central advertising file.
NOTE: Because of the stringent filing requirements of investment products, this will not apply
to variable products or investment ads.
Ads Where There Is No Information That Varies (includes such things as business
cards copied to be used in publications such as newspapers, church bulletins,
Yellow Page/Directory ads etc).
• Ads may be prepared by the field force or by the marketing area. (Business cards should be
prepared according to the company policy statement on use of company name and logo.)
• As long as there are no changes to the original item, agent may use without prior approval, once
original has been approved. All information regarding specific categories of publication media such
as newspapers, magazines, programs, directories, etc. where the ad may be potentially used (i.e.
city, county) must be included with the submission. However, it is not necessary to list the actual
publication names. Approval will be given for two years. Any change to the ad will require that it
be resubmitted for compliance review.
NOTE: Because of the stringent filing requirements of investment products, this will not apply
to variable products or investment ads.
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Compliance 73
Statement of Policy for Independent Marketing on Use of Company Name and
Logo on Stationery
Any person who represents American National may use the company name and logo on stationery
such as letterhead and business cards provided that certain conditions are adhered to. There are
primarily two situations that may exist.
1. Person holds himself or herself out to be a representative of American National. In this case, the
person’s stationery may use the American National name and logo as the primary company name
on stationery provided that the relationship with American National is clearly specified (i.e., job title,
contract type, etc.). If the person has an agency name, that name may only appear as part of the
mailing address. The person’s relationship with the agency (i.e., president, marketing director, etc.)
may not appear on the stationery item. See Exhibit 1.
2. Person holds himself or herself out to be a representative of an agency. In this case, the person’s
stationery may NOT use the American National name and logo as the primary company name. The
person’s agency name should appear as the primary company name. American National name and
logo may appear at the bottom of stationery, below the word “representing” or another similar
phrase clearly depicting the agent’s relationship with American National. See Exhibit 2.
THE DO RIGHT AGENCY
1101 STATE STREET
GALVESTON, TEXAS 77550
OFFICE: (409) 123-4567
FAX: (409) 123-4568
AMERICAN NATIONAL INSURANCE COMPANY
JOHN A. ANICO
Independent Marketing Group
THE DO RIGHT AGENCY
1101 STATE STREET
GALVESTON, TEXAS 77550
JOHN A. ANICO
PRESIDENT AND CEO
OFFICE: (409) 123-4567
FAX: (409) 123-4568
Representing
AMERICAN NATIONAL INSURANCE COMPANY
Galveston, Texas
Exhibit 1
AMERICAN NATIONAL INSURANCE COMPANY
JOHN A. ANICO INDEPENDENT MARKETING AGENT
THE DO RIGHT AGENCY
1101 STATE STREET, GALVESTON, TEXAS 77550
PHONE: (409) 123-4567
FAX: (409) 123-4568
Exhibit 2
Top of
Stationery
Bottom of
Stationery
THE DO RIGHT AGENCY
JOHN A. ANICO, PRESIDENT AND CEO
THE DO RIGHT AGENCY
1101 STATE STREET, GALVESTON, TEXAS 77550
PHONE: (409) 123-4567
FAX: (409) 123-4568
Representing American National
Insurance Company, Galveston, Texas
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Compliance 74
Advertising Tips
When
You Should
1.
Advertising a life or
annuity product
Make that point clear. The word insurance or annuity should appear prominently in
your ad. It should follow the company’s proprietary policy name if the word insurance
or annuity is not a part of that name. Spell out type of policy (i.e. flexible premium,
single premium deferred), avoid use of acronyms.
2.
Advertising that a
representative will
contact someone or
may be contacted
Make it clear that this will be a sales representative.
3.
Advertising a product
and requesting an
interview whose
purpose is to sell
insurance
Make it clear that that is the point of the contact.
4.
Listing additional riders
are available
Explain that they are available for additional premium, if such is the case.
5.
Using the phrase
deferred income taxes
Specify whether they are federal or state.
6.
Using a reference to
tax-favored status
Specify exactly how that status is maintained.
7.
Using a reference to
tax-free status or legal
implications
Refer the customer to his or her own lawyer or tax advisor.
8.
Listing coverage
Specify the names of ALL insurers providing that mixture of coverage, including
available through
subsidiary companies.
different insurers in a
single ad (most typically
insurance provided by a
subsidiary)
9.
American National and
generic ads
When using generic ads that represent ANICO and ANPAC®, it is okay to use the term
“American National” rather than listing the full company names - if no specific products
or plans are listed. For example: listing CA$HBACK FROM ANPAC® is a program of
ANPAC® and would require the full company name be printed. Use of the phrase “Life,
Auto and Home” would not. These are not specific products or plans. It is suggested
that the Family of Companies logo be used when possible.
10.
Advertising limited care
plans
Make certain the ad makes it clear that only one illness is covered - all others are
excluded.
11.
Advertising annuities
sold in banks (Bank
Disclosure)
Include a disclaimer clearly stating that the policies are not FDIC insured, not a deposit
or obligation of the bank, and subject to investment risk, including loss of principal. (See SUGGESTED DISCLAIMERS for preferred wording)
12.
Making a claim that
Include a footnote that under federal law, proceeds are generally held to be tax-free.
proceeds are tax-free to
the beneficiary
13.
Ads that do not carry
the company name
An advertisement that does not mention specific company information: company
name(s), products, benefits, financial data, for example, does not require ANICO
compliance review, unless the intent is to create interest in the company or is likely to
result in a sale of the company’s products, in which case it should be reviewed.
14.
Company name
required
Any advertisement that lists specific company information: products, benefits,
financial data, for example, must include the full company name and, where required,
location.
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Compliance 75
When
You Should
15.
When quoting statistics Name the exact source of those statistics (name of publication, date/version, etc.).
Statistics used must be current (generally no more than 2 years old) and relevant.
When new statistics are published, only those statistics may be used (for example:
when advertising company financials). When quoting statistics or information from the
internet, it should be verifiable and from established, respectable companies. When
quoting statistics, hard copy of the source of all statistics should be provided when the
material is submitted for review.
16.
Disability Insurance
American National does not underwrite disability insurance. You must include the
name of Illinois Mutual Life Insurance Company if you plan to advertise disability
coverage and prior approval is also needed from them.
17.
Copyrighted Materials
These may not be reprinted for training or sales unless permission is received in
writing from the publicist for reprint and their reprint instructions are followed. (Usually
require specific wording appear on the copies.)
18.
Displaying a nonIf advertising the current rate of interest, you must also display the minimum
guaranteed interest rate guaranteed rate, in close proximity, and in same font size (or larger), being sure it is
given equal emphasis. Must use the annual effective rate, and must state that the
annual effective rate is being quoted.
If advertising a depiction of non-guaranteed rates over a period of years (an illustration),
must be accompanied by a basic illustration.
19.
Bonus
Cannot be used without clarification as to the type of bonus being advertised.
CANNOT advertise premium bonus. Cannot be used in Texas except with respect to a
retrospective bonus that is guaranteed by the policy provisions such as a persistency
bonus. May only be referred to as “interest rate enhancement.”
20.
Disparaging Statements Will not be allowed in any form. An advertisement shall not disparage other insurers,
insurance producers, policies, services or methods of marketing.
23.
Fixed Annuities
Should not refer to fixed annuities or their benefits as investments, should not refer to
their premiums as contributions or deposits.
24.
Using Testimonials
Obtain written permission for use and submit signed copy with sales/marketing
materials prior to review.
Suggested Disclaimers
1.
For the terms
Suggested Wording
Tax-Deferred
Growth*
Income and growth on accumulated cash values has been held by the Tax Court to be
generally taxable only upon withdrawal. (T.H. Cohen, 39 TC 1055 (1963), acq. 1964-1 CB 4
also, IRC. § 72.). Consult your tax advisor or attorney on your specific situation.
2. Tax-Free Policy
Loans*
Policy loans from life insurance policies generally are not treated as distributions or subject
to income tax (IRC § 7702). Consult your tax advisor or attorney on your specific situation.
3. Tax-free Death
Benefits*
Proceeds from an insurance policy paid because of the death of the insured are generally
excludable from the beneficiary’s gross income for tax purposes. (IRC § 101(a)(1).) Consult
your tax adviser or attorney on your specific situation.
4. For general use*
Only through a general review of your specific situation can it be determined if there are tax
advantages available to you through our products, one of which is life insurance. You should
consult your tax advisor or attorney on your specific situation.
5. Materials for agent
use only
This document is not intended to induce the public to purchase, increase, modify, or retain a
policy of insurance. It will not be released to the general public as it is not company-approved
advertising material.
6. Materials for agent
use only
For registered representatives: For Broker- Dealer/Registered Representative Use Only – Not
to be Shown To The Public.
For agents who are not registered representatives: For Agent Use Only - Not Approved For
Use With the General Public
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Compliance 76
7.
For the terms
Suggested Wording
Bank Disclosure
Not FDIC/NCUA insured
Not a deposit
Not insured by any federal agency
No bank/CU guarantee
May lose value
8. Suicide Wording
A two year suicide exclusion is included in the policies (one year in Colorado, North Dakota
and Missouri)
*Taken from the book: Compliance: The Survival Guide; Groner, Petersen; Leimberg Associates Books
(1995 Bryn Mawr, PA.) Used with permission of the author.
Note: When these disclaimers are used, they must be connected to the verbiage in the marketing
piece using footnotes, endnotes, asterisks, or some other form of link.
Phrases and Terms To Avoid (in traditional advertisements or in sales presentations)
One of the most important things to think about when choosing these words, is the ability to back-up
what you say. Terms such as lowest, best, ideal, unlimited, minimum, unique, only, exceptional, superb
and excellent are fairly difficult to substantiate with facts and therefore are difficult to prove. If you can’t
prove it – you can’t say it.
Superlatives: Terms such as lowest, best, ideal,
unlimited, minimum, unique, only, exceptional,
superb, excellent, etc.
These terms are fairly difficult to substantiate with fact and
therefore are difficult to prove. If you can’t prove it – you can’t
say it. Can be used by qualifying the term by inserting “we
believe” or “we think you’ll agree” to the text.
Savings, emergency fund, accumulations
instead of cash value.
Deposit, investment, contribution
instead of premium.
Plan, program
instead of insurance; when discussing a single policy
Low Cost
Almost impossible to substantiate with facts. Cost is
interpreted to mean administrative costs and must be
compared with other companies’ costs.
Representative
without identification as a sales agent.
Account
instead of policy.
Retirement
to refer to regular life insurance or annuity plans.
Savings account
instead of premiums or cash value.
Tax-free or Tax-deferred
without a mention as to how that status is maintained.
State Guaranty or Warranty Associations
While all states have these, they cannot be used as a part of
the sales presentation.
State Approval of Policy
State approval of the policy cannot be used to imply that the
state endorses a particular policy.
Vanishing Premiums
Since the use of vanishing premiums was quite often improper,
most states view this as a misleading phrase. American
National will not approve advertising with this phase.
“Legal Reserve”
Use of this phrase is banned in Pennsylvania.
Reference connection between ANICO and the
Moody Foundation or other stockholders
We will not allow advertisements to reference the Moody
Foundation or any other stockholders. Keep the subject on
discussions of how strong the Company is and not who owns it.
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Compliance 77
Use of Designations, including Senior Specific
Designations
Designations should not be used in such a manner as to be
misleading and the rules and regulations for each state should
be considered
Financial Planner/Advisor
This title cannot be used unless he/she is certified as such and
receiving payment for these services.
Compare annuities or life insurance products with
CD's or investment products
All comparisons should be fair and complete.
"Return of Premiums"
This terminology cannot be used as the cash or loan value in a
policy is not a return of premiums and to state such could be
misleading. It can only be used if the product described has a
provision that provides such a benefit.
Use of Acronyms
Acronyms can be very confusing, especially with consumer
pieces. Spell out at least when introducing the product.
"Medicaid/Medical" friendly or similar terminology
Use of this terminology tends to oversimplify the issue.
(*See example of chart and disclosures below)
The following chart and the disclosures that would be required are a good example to use for such
comparisons:
(Note this comparison may not be appropriate for all marketing materials and prior approval is required).
Here are some characteristics of financial instruments commonly used in retirement years:
Certificate of
Deposit
Fixed Annuity
Life Insurance
Generally
No1
No
Yes2
Yes2
Yes
Yes
Generally
Yes3
Generally
Yes4
Generally
Yes5
GUARANTEED
PRINCIPAL
Generally
No6
No
Yes7
Yes8
Generally
No9
FREE FROM
PROBATE12
Generally
No10
Generally
No10
Generally
No10, 11
Yes12
Yes12
TAX-DEFERRED
GROWTH
LIQUID
Money Market
Fund
Mutual Fund
Generally
No1
1 Some tax-exempt funds are available.
2 Under the Internal Revenue Code, Income and growth on accumulated cash values are deferred until withdrawn.
3 Penalties apply on early withdrawals.
4 Significant charges apply during Surrender Charge Period, which may last for several years. Some annuities offer free withdrawals
if the withdrawal does not exceed 10% of the contract value each year. A 10% federal income tax penalty may apply for withdrawals
before age 591/2.
5 Significant charges apply during Surrender Charge Period, which may last for several years. Funds may be available through policy
loans that are generally not treated as taxable distributions. Loans have the affect of decreasing the death benefit and increase the
potential of a policy lapse. If a loan is outstanding when a policy is surrendered or allowed to lapse, the borrowed amount becomes
taxable to the extent the loan exceeds the owners basis in the policy.
6 Money Market accounts issued by a bank may be FDIC insured up to $100,000.
7 Accounts insured by Federal Deposit Insurance Corporation, generally limited to $100,000.
8 Guarantees are contingent on the claims-paying ability of the of the issuing insurance company.
9 Some single premium life insurance policies guarantee a full return of premium paid subject to certain conditions.
10 The use of joint ownership may avoid probate.
11 State law may allow for a beneficiary designation that avoids probate.
12 Proceeds of insurance contracts paid to a named beneficiary are generally not probate assets. Consult your tax advisors for
advice applicable to your situation.
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Compliance 78
State Specific Issues
State
Issue
Alabama (482-1-132-.06)
Arkansas (Rule 99 § 6(a))
California (10 CCR 2536)
Connecticut (38a-817-25)
Delaware (CDR 18-1300-1302)
D.C. (CDCR 26-A211.15)
Georgia (120-2-11-.06(1))
Illinois (501 Ill. Code 909.50(a))
Indiana (760-IAC-1-18-7)
Iowa (191.12.3(1)
Kansas (K.A.R. § 40-4-23(F)
Kentucky (806 KAR 12:010 § 5)
Louisiana (37:XI.107(A)
Maine (CMR 02-031-140 §7)
Maryland (COMAR 31.15.02.05)
Massachusetts (211 CMR 40.05)
Michigan (R500.1377(1))
Mississippi (83.5-29)
Missouri (83-5-29)
Nebraska (210-50-.006)
Nevada (Ins. 2603.04)
New Hampshire (Ins. 2603.04)
New Jersey (N.J.A.C. 11:2-23.5(a))
New Mexico (NMAC 13.10.4.9)
North Carolina (11 N.C.12.0426 (a)
North Dakota (Rule 836-020-0215)
Oklahoma (O.A.C. § 365:10-3-4)
Oregon (Admin Rule 836-020-0215)
Rhode Island (CRIR 02-030-052)
S. Carolina (SC Code Regs 69-17§1)
S. Dakota (ARSD 20:06:10:03)
Tennessee (0780-1-71-.08(10)(f)
Texas (28 TAC § 21.103(c)
Utah(U.A.C. R590-1030-5)
Vermont (CVR 21-020-002§2)
Virginia (14 VAC 5-41-40 (A)
Washington (WAC § 284-50-040)
W. Virginia (W.Va. CSR§114-11-5)
Wyoming (WCWR 044-000-021 §5)
Information required to be disclosed should not be minimized, rendered obscure,
or presented in ambiguous fashion, or intermingled with text of advertisement so
as to mislead or confuse.
Arizona (A.A.C.§ R20-6-202)
Texas (28 TAC 21.105(a)
Cannot advertise benefits which are not part of the policy contract
Arkansas
(DOI Directive 2-2008)
All advertisements shall include the producer’s Arkansas insurance license number.
Producers may use the following language to comply with this requirement
“Arkansas Insurance Producer License Number 123456”. This information must
be in the same type size used for the producer’s name or telephone number.
Advertisement shall include business cards, letterhead stationery, and any printed
material distributed by the producer.
California
(Cal. Ins. Code§1725.5)
All advertisements (including business cards) must include the license number of
the agent and must be in the same size type as the telephone number, address
or fax number. (Does not apply to ads used in multiple states). Advertisements
for events where insurance will be offered for sale may not use terms such as
“seminar”, “class”, “informational meeting” or equivalent terms unless it includes
the words “and insurance sales presentation” immediately following those terms
in the same type and font size. Any person who meets with a senior in the senior’s
home must deliver a “written notice” no less than 24 hours prior to the meeting
in the home.
Although all states may not have a specific regulation or statute, this
criterion should be met in all states in order to avoid deceiving or misleading
consumers.
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Compliance 79
State
Issue
Colorado
(Col. Reg. 3 CCR 702-4)
Solicitation to new prospects via facsimile must include a toll-free number that
allows the consumer to contact the sales person, at no expense, to request that
no further communication take place; Cannot sell fax number without permission
from the consumer.
In the event an advertisement uses “non-medical,” no medical examination required”
or similar terms where issue is not guaranteed, terms shall be accompanied by a
further disclosure of equal prominence and in juxtaposition thereto to the effect
that issuance of the policy may depend upon the answers to the health questions
set forth in the application.
Advertisements that include information on “bonus/premium enhancements”
should make it clear how the additional interest can be earned.
Florida
1. If ad is to be produced and distributed in quantity, it must have a form (or ad)
number. (Generally, one is enough to warrant a form number.)
2. Disclosures must be at least no smaller than the smallest body text (no
smaller than 10pt).
3. Advertisements that do not mention the company and/or its products but that
have the potential of benefiting the company, must be reviewed and approved by
the company prior to use.
Georgia
Insurers and its agents can pay for and provide meals and refreshments during
sales presentations and seminars without it being viewed as rebating, however, if
the presentation is given to a group, no soliciting of annuities will be allowed
Illinois
An initiator of an unsolicited electronic mail advertisement must establish a tollfree telephone number or valid sender-operated return electronic mail so that the
recipient of the unsolicited electronic mail advertisement may call or electronically
mail to notify the sender not to electronically mail any further unsolicited electronic
mail advertisements. Each unsolicited electronic mail advertisement’s subject line
shall include “ADV/” as its first four characters.
Maine
(24-A MRSA Section 2154)
Insurance companies and/or insurance producers cannot use the name of a
financial institution in an advertisement without the express written permission of
the financial institution unless they disclose in the advertisement that: (i) they don’t
have permission to use the financial institution’s name and (ii) they are not affiliated
with the financial institution.
Michigan
(Bulletin No. 2002-06-INS)
Any marketing or sales materials that state, imply or in any way suggests that an
annuity may be used as a vehicle to protect assets from Medicaid asset limitation
requirements, must include a disclaimer in “at least 14-point type” to reference
the limited circumstances in which this is acceptable under Medicaid rules, and
must include the definition of actuarially sound as follows:
“To qualify as an actuarially sound annuity for purposes of determining Michigan
Medicaid eligibility, an annuity must meet all of the following requirements:
1. Pay off all value over annuitant’s actual or expected lifetime.
2. Pay in substantially equal periodic payments.
3. Limit any “Guaranteed period” to less than expected lifetime.
4. Include no lump sum payment except for remainder of guaranteed equal
periodic payments at death.”
Minnesota
Minnesota,
Wisconsin
All initial contacts with new customers (phone or in person) with ANICO
representatives, must disclose license number, company name, purpose of
meeting (solicitation of insurance); Disclosure must be made in writing, except for
initial telephone contacts.
Washington, Advertisements must include full name and location of insurer.
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Compliance 80
State
Issue
New York
(NY Ins. Code 11 NYCRR § 219.4)
Joint advertisements may include the name of an unauthorized insurer provided
that the unauthorized insurer does not do an insurance business in New York
and the advertisement contains a clear and conspicuous disclaimer indicating
the licensing status of the entities relative to NY. Joint advertisements may use
general disclosures such as “some insurance policies are not available in all states”.
The name of the unauthorized insurer shall not be more prominent than the name
of the authorized insurer.
If you mention a company’s assets, you must just as obviously mention that
company’s liabilities (calculated the same way)
Advertisements must include full name and location of insurer.
In the event an advertisement uses non-medical, no medical examination required,
or similar terms where issue is not guaranteed, such terms shall be accompanied,
in each instance, by a disclosure of equal prominence and in juxtaposition thereto
to the effect that issuance of the policy or payment of benefits may depend upon
the answers given in the application and the truthfulness thereof
Information required to be disclosed shall not be minimized, rendered obscure,
or presented in an ambiguous fashion or intermingled with the text of the
advertisement so as to be confusing or misleading
An advertisement shall not state or imply in any way which exaggerates any benefit
beyond the terms of the policy, that ownership of the policy will solve financial
problems.
An advertisement shall not create the impression that the insurer, its financial
condition or status, the payment of its claims, or the merits, desirability or
appropriateness of its policy forms or kinds of plans of insurance, are superior to
what can be found elsewhere in the industry, unless such can be proven.
When an advertisement contains an application to be completed by the applicant
and returned by mail for a direct response product, such application shall be
identical to the application form approved for the policy being offered, except that
the size, color and type of paper stock may be different
South Carolina
(S.C. Code Ann. § 38)
An insurer may advertise an insurance policy, or the availability of a foreign language
informational sheet or insurance policy translation, in a language other than English,
but issue the policy in English only so long as the insurer’s advertisement clearly
states that the insurance policy is only available in English.
Requirements for use of American National Insurance Company segment or
division name and use of logos
Advertisements that reference or discuss a division of American National Insurance Company must be clear
that the division, group, or segment discussed is a sales division of American National Insurance Company:
• Any division that uses a logo, symbol or trademark shall use a tagline--immediately below the mark-that states “(a division of American National Insurance Company).”
• In the text that discusses the division--the introductory paragraph shall include the phrase “ a
division of American National Insurance Company…”
• Any material intended for public use, no financial data for the division shall be presented.
• In material for institutional or agent use only, financial data that may be presented for the division
shall only be at a gross sales or revenue basis.
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Compliance 81
Use of American National Life Insurance Company of New York segment or division
name and logos
Advertisements that reference or discuss a division of American National Life Insurance Company of
New York must be clear that the division, group, or segment discussed is a sales division of American
National Life Insurance Company of New York:
• Any division that uses a logo, symbol or trademark shall use a tagline--immediately below the mark-that states “(a division of American National Life Insurance Company of New York).”
• In the text that discusses the division--the introductory paragraph shall include the phrase “ a
division of American National Life Insurance Company of New York …”
• Any material intended for public use, no financial data for the division shall be presented.
• In material for institutional or agent use only, financial data that may be presented for the division
shall only be at a gross sales or revenue basis.
Use Of Company Ratings In Marketing Materials
Some specific guidelines exist when you choose to use the company ratings in marketing materials
directed at the public or in agent training materials that provide information to be passed to customers
1. If you plan to use them, you must include information from BOTH rating companies to which the
company subscribes. You cannot choose the one that looks best and ignore the other. To do so is
considered misleading. Therefore, if you choose to use the Standard and Poor’s rating, you must
also use the A. M. Best Co. rating.
2. You must include the names of the rating companies whenever listing the rating. You cannot simply
say “rated A+” and not include “by A. M. Best Co.”
3. We are no longer subscribing to Moody’s and are no longer allowing use of this rating.
4. When discussing more than one affiliated company, you should be clear as to which company has
earned which ratings. Additionally, the rating advertised should be relevant to the product being
sold. For example, do not discuss ANICO ratings and then sell ANPAC products. ANPAC has its
own ratings.
5. If you are advertising variable products, the following disclosure must be included: “These ratings
reflect the claims paying ability, financial strength and ability to meet obligations of the insurance
company and do not apply to the performance of the underlying investment options in the separate
account funding the variable products, which is subject to market risk. Accumulation value will vary
and you may have a gain or loss when money is withdrawn.”
6. Use of the A.M. Best logo requires prior approval from A.M. Best.
The Following Wording Has Been Established And Should Be Used When Discussing
The Company’s Financial Strength Ratings:
ANICO’s Financial Strength Ratings
Financial Strength Ratings
American National Insurance Company (“American National”) has been evaluated and assigned the
following ratings by nationally recognized, independent rating agencies. The ratings are current as of
[approval date].
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Compliance 82
A.M. Best1
A
“An excellent ability to meet their ongoing insurance obligations”
Standard & Poor’s2 A “Strong capacity to meet financial commitments, but somewhat susceptible to adverse economic
conditions and changes in circumstances.”
Ratings reflect current independent opinions of the financial capacity of an insurance organization to
meet the obligations of its insurance policies and contracts in accordance with their terms. They are
based on comprehensive quantitative and qualitative evaluations of the company and its management
strategy. The rating agencies do not provide ratings as a recommendation to purchase insurance or
annuities. The ratings are not a warranty of an insurer’s current or future ability to meet its contractual
obligations.
Ratings may be changed, suspended, or withdrawn at any time. For the most current ratings view the
full rating reports on American National’s Internet site at www.anico.com.
A.M. Best’s active company rating scale is: A++ (Superior), A+ (Superior), A (Excellent), A- (Excellent), B++ (Good), B+
(Good), B (Fair), B- (Fair), C++ (Marginal), C+ (Marginal), C (Weak), C- (Weak) and D (Poor).
1
Standard & Poor’s active company rating scale is: AAA, AA, A, BBB, BB, B, CCC, and CC. Ratings from ‘AA’ to ‘CCC’ may
be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories.
2
Abbreviated Wording
Financial Strength Ratings
American National Insurance Company (“American National”) has been evaluated and assigned the
following ratings by nationally recognized, independent rating agencies. The ratings are current as of
[approval date].
A.M. Best 1 A
Standard & Poor’s2
A
Ratings reflect current independent opinions of the financial capacity of an insurance organization to
meet the obligations of its insurance policies and contracts in accordance with their terms. They are
based on comprehensive quantitative and qualitative evaluations of the company and its management
strategy. The rating agencies do not provide ratings as a recommendation to purchase insurance or
annuities. The ratings are not a warranty of an insurer’s current or future ability to meet its contractual
obligations.
Ratings may be changed, suspended, or withdrawn at any time. For the most current ratings view the
full rating reports on American National’s Internet site at www.anico.com.
1
A.M. Best’s active company rating scale ranges from A++ (Superior) to D (Poor).
Standard & Poor’s active company rating scale is: AAA, AA, A, BBB, BB, B, CCC, and CC. Ratings from ‘AA’ to ‘CCC’ may
be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories.
2
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Compliance 83
American National Life Insurance Company of New York’s Financial Strength Ratings
Financial Strength Ratings
American National Life Insurance Company of New York (“American National”) has been evaluated and
assigned the following ratings by nationally recognized, independent rating agencies. The ratings are
current as of [approval date].
A.M. Best1
A
“An excellent ability to meet their ongoing insurance obligations”
Standard & Poor’s2 A “Strong capacity to meet financial commitments, but somewhat susceptible to adverse economic
conditions and changes in circumstances.”
Ratings reflect current independent opinions of the financial capacity of an insurance organization to
meet the obligations of its insurance policies and contracts in accordance with their terms. They are
based on comprehensive quantitative and qualitative evaluations of the company and its management
strategy. The rating agencies do not provide ratings as a recommendation to purchase insurance or
annuities. The ratings are not a warranty of an insurer’s current or future ability to meet its contractual
obligations.
Ratings may be changed, suspended, or withdrawn at any time. For the most current ratings view the
full rating reports on American National’s Internet site at www.anico.com.
A.M. Best’s active company rating scale is: A++ (Superior), A+ (Superior), A (Excellent), A- (Excellent), B++ (Good), B+
(Good), B (Fair), B- (Fair), C++ (Marginal), C+ (Marginal), C (Weak), C- (Weak) and D (Poor).
1
Standard & Poor’s active company rating scale is: AAA, AA, A, BBB, BB, B, CCC, and CC. Ratings from ‘AA’ to ‘CCC’ may
be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories.
2
Abbreviated Wording
Financial Strength Ratings
American National Life Insurance Company of New York (“American National”) has been evaluated and
assigned the following ratings by nationally recognized, independent rating agencies. The ratings are
current as of [approval date].
A.M. Best 1 A
Standard & Poor’s2
A
Ratings reflect current independent opinions of the financial capacity of an insurance organization to
meet the obligations of its insurance policies and contracts in accordance with their terms. They are
based on comprehensive quantitative and qualitative evaluations of the company and its management
strategy. The rating agencies do not provide ratings as a recommendation to purchase insurance or
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Compliance 84
annuities. The ratings are not a warranty of an insurer’s current or future ability to meet its contractual
obligations.
Ratings may be changed, suspended, or withdrawn at any time. For the most current ratings view the
full rating reports on American National’s Internet site at www.anico.com.
1
A.M. Best’s active company rating scale ranges from A++ (Superior) to D (Poor).
Standard & Poor’s active company rating scale is: AAA, AA, A, BBB, BB, B, CCC, and CC. Ratings from ‘AA’ to ‘CCC’ may
be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories.
2
Advertising Guidelines For Variable Product Advertising
General Guidelines For Variable Product Advertising
All client and recruiting advertisements of Variable Products should be submitted to the Independent
Marketing Group for approval. General Guidelines for submitting a Variable Product advertisement
to the Home Office are the same as those outlined in Section 7 of this manual. However, it is the
responsibility of the organization submitting the advertising piece to do the following:
Review and prepare all advertising submissions in accordance with the FINRA Conduct Rules as
outlined in the FINRA Conduct Rules 2210 and IM-2210-2 of the FINRA Manual prior to submitting the
piece to the Independent Marketing Group for review and approval. These rules cover definitions, filing
requirements and standards for advertising and sales literature.
If filing with the FINRA is required, the Independent Marketing Group will notify ANFS and ANFS will
file the advertising piece with the FINRA’s Advertising Regulation Department once American National
has completed its preliminary review of the material.
Advertising and sales literature submitted to the Independent Marketing Group, which are not in
compliance with the pre-submission requirements listed on the previous page will be rejected upon
receipt.
Review and Preparation of Materials Prior to Filing
To assist broker-dealers with their review and preparation of advertising and sales literature we provide
the following sources for reference:
Source: FINRA Manual
• FINRA Conduct Rule 2210 (Communications with the Public) and IM-2210-2 (Communications with
the Public about Variable Life Insurance and Variable Annuities)
• SEC Rule 134 (Tombstone Advertising Rule)
• SEC Rule 482 (Omitting Prospectus Rule)
• SEC Rule 34b-1 (includes performance data & used with funds prospectus)
• SEC Rule 135a (generic communications, not product specific)
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Compliance 85
Source: NTM (Notice To Members)
• NTM 94-36 - Variable Products Communications Guidelines
• NTM 94-60 - FINRA Ranking Guidelines
Source: SIPC (Securities Investor Protection Corporation) - By Laws
• SIPC Article 11, Section 4 (Advertising)
Guidelines For Ads That Will Appear Nationally
(such as in national publications or on the internet/web)
1. All state regulations and laws currently in place regarding advertising apply to national advertising.
2. Approval of national advertisements is required prior to use, just as with any other form of
advertisement.
3. We cannot control access to the ads, therefore all national ads directed to agents or prospective
agents must include appropriate wording (“For agent use only. Not approved for use with general
public in the sale of insurance.” Or something similar).
4. Because we cannot control access, ads may be viewed around the world (consequently – in all
states). Therefore, all national ads must comply with advertising rules, regulations, and guidelines
for all states in which we do business.
5. An ad that would require filing under normal circumstances (newspaper, magazine, etc.), will still
require filing when it appears nationally.
6. Disclaimer stating that services and products are not available in all states must appear on all pages.
7. Control number assigned to the piece must appear on all pages. (This will not be required for
internet pieces, as the unique URL will distinguish the piece).
8. Company name and home office location must appear on all pages.
Additional Guidelines For Internet/Web Ads
1. The Career Sales and Division does not allow the use of the Internet/Web for advertising of their
products and services at this time.
2. Web/Internet address where the ad will be located (Example: www.anico.com) must accompany
the request for approval.
3. List of all links to and from that site that will contain information about American National or its
policies or products must accompany the request for approval.
4. E-mail and Chat Room discussions that are sales related require compliance with all advertising and
solicitation rules, regulations, and guidelines as would any other sales presentation.
5. Social media sites such as “Facebook” that include information on the company and/or specific
products must be reviewed and approved prior to use,and must comply with the Company’s policy
on the use of social media.
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Compliance 86
Expiration Of Advertising Approvals
Unless special circumstances exist, advertising approvals will expire under the following guidelines:
Category
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Newspaper Ads
Magazine Ads
Radio Ads
Television Ads
Billboards
Recordings (such as commercials
for time and weather)
Yellow Pages / White Pages
Direct Mail/Form Letters
Videos
Presentation Materials
Personal Brochures
Internet / Web
Prepared Sales Talks
Agent Training Materials (includes
training overheads, manuals,
guidelines, scripts, handouts,
suggestions for direct mail letters,
etc.)
Expires
Comments
Period of time agreed to in agent’s
contract with vendor providing the
service. This could be a one-time only
use or a one-year use (as in the case
of telephone book ads).
See Notes.
Ads that include variable products will
be approved for no longer than one
year
Varies depending upon content. If
content doesn’t vary and there are
no changes, approval will normally be
given for one (1) year.
Ads that include variable products will
be approved for no longer than one
year.
If the agent specifies a specific date of
use, approval will only be for that date.
See Notes.
Primarily based upon dates of use
indicated by the person submitting the
piece, but also based upon content.
Approval will be given for no longer
than one year form date of use.
See Notes.
Ads that include variable products will
be approved for no longer than one
year.
Leaflets
Circulars
Fliers
Booklets
Mailers
Typically give three-month approval.
Bulletins to field force
Newsletters to field force
Ads that include variable products will
be approved for no longer than one
year.
Company prepared brochures
Sales pieces prepared in quantity
and placed in stock
Items prepared in quantity for
continued use over a period of
time.
Unless something is included that
prohibits it, approval will expire upon
need to reprint or one year whichever
comes first. At expiration, all items
must come back through compliance
review unless special circumstances
exist.
Usually information disclosed in these
pieces becomes part of a more official
training / marketing piece, so only
short-term use is anticipated.
See Notes.
See “Guidelines For Reprinting”.
NOTES:
Marketing pieces showing company financials: Cannot be used beyond the publication of new financials. The standard
expiration date for these pieces will be March 31st of each year.
Marketing pieces showing statistics: Will expire upon need to reprint or within one year of approval, whichever comes first.
New Regulations: As states adopt new regulations, American National will need to review marketing pieces in use and
make arrangements to bring any pieces out of compliance into code.
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Compliance 87
Guidelines For Reprinting Company Advertising Materials For Non-Variable
Products
If the need arises to reprint, and the approval date is within one year, we will not require that the piece
be submitted for compliance review. Please email Corporate Affairs/Compliance, advising that the
reprint will take place, and be sure to indicate the control number and form number for the piece being
reprinted. You will need to show a copy of the email and your copy of the review form showing when
the piece was first approved to Purchasing at the time you submit the request for reprinting so they
can assure the request is within one year of approval.
Advertising Violations
Failure by an American National appointed Marketing Organization, producer, broker, broker/dealer
or registered representative to submit advertising material regarding American National Insurance
Company or its products to the Company for approval, prior to its distribution, is a direct violation of
the contract or selling agreement of such producer and state laws and regulations.
Advertising violations jeopardize the Marketing Organization, their producers, broker-dealers and their
registered representatives relationships with the Company as well as impact product availability.
Consequently, it is American National’s policy, upon discovery of the first violation, to impose a penalty
ranging from a formal warning to termination, depending on the nature of the infraction. If a violation
occurs, and a producer/agency is contracted with American National directly, through the Marketing
Organization, the Independent Marketing Group will send an advertising violation warning letter to the
producer/agency and send a copy of the letter to the Marketing Organization. If the producer/agency is
appointed to sell American National products, but is contracted with the Marketing Organization, rather
than American National, it is the responsibility of the Marketing Organization to send an advertising
violation warning letter to the producer/agency upon discovery of the violation and submit a copy of the
letter to the Independent Marketing Group of the Company.
The penalty for repeat violations could result in termination of the appointment, contract or selling
agreement of the Marketing Organization, producer, broker or broker-dealer. The Independent Marketing Group will provide a copy of its advertising guidelines, along with revisions
as they occur to ensure adherence to the guidelines via IMG’s Web site. The Marketing Organization or
broker-dealer will provide each producer, agency or registered representative with American National’s
Statement on Producer Developed Advertising, Form # 4512 (ANY-4512 for New York) upon application
for appointment of the producer, agency or registered representative with American National.
Advertising Review of Concept Sales Materials
Concept Sales Materials” are those sales materials that are designed to present a concept to help
create a need for an insurance product and/or the funding for the product. If such materials refer to
an American National company or to products or services provided by an American National company,
they will be subject to formal review and approval under these guidelines. If such materials are generic
in nature and do not refer to any specific company, product or service, they will be subject to the
expedited review process described below.
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Compliance 88
Non-Variable Products
When concept sales materials are submitted to a marketing area, the head of the marketing area must
first determine that the materials are acceptable for use by its producers. If the material is acceptable
to the marketing area, it will then be sent to Actuarial and Corporate Compliance for review. The
reviews conducted by Actuarial and Corporate Compliance will be conceptual, “big picture” reviews,
rather than the detailed reviews required for product or company-specific materials, and will look for
possible conflicts with features of American National products that might be sold, “tie-ins” to other
products or services, overall fairness and clarity of the piece and the absence of tax advice. If both
Actuarial and Corporate Compliance find the material to be unobjectionable, it will be returned to the
marketing area with a statement that the materials have been reviewed and there is no objection to
their use. Concept sales materials will not be formally approved by Corporate Compliance.
Do Not Call Procedures (DNC) Rules to implement a National Do Not Call list were passed by both the Federal Trade Commission (FTC)
and the Federal Communications Commission (FCC). The FCC has applied these rules to the business
of insurance and to intrastate telephone calls. Simply put, if a phone number is on the National list, as
state list or the company list, you are not to call that number to solicit the sale of a product or service.
In reality, the FTC/FCC rules are complicated. It is clear that the public perceives phone calls selling products and services as an intrusion on their
privacy and wants telephone solicitations limited. American National Insurance Company intends to
comply with the law and expects its agents, who make telephone calls to solicit the sale of its insurance
products, to be familiar and to comply with both the Federal Do Not Call and any applicable State Do
Not Call restrictions.
If someone’s phone number is on the National Do Not Call list some of the exceptions that would
permit you to call that number are:
• You have a written, signed consent to call the specific telephone number;
• You or the company have an established business relationship with the person;
• You have a personal relationship with the person.
Note, referrals are not an exception nor are calls to set up face-to-face meetings!
An existing business relationship exists when:
• the consumer has made a purchase or entered into another transaction with the business within
18 months prior to the call; or
• when the consumer has made an inquiry or application to the business within 3 months before the
call.
A personal relationship means an individual personally known to the agent making the call. In
determining whether a personal relationship exists the FCC has indicated it will look at whether a
reasonable consumer would expect calls from such a person (the agent) because they have a close or,
at least, firsthand relationship.
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Compliance 89
The process that American National provides to determine whether numbers are on the National or
Company list is to be used only to check phone numbers when the agent is calling on behalf of
American National. Agents may go through the Web site portal they use for E-Agent to access the
Company’s DNC information, which give agents the ability to:
• View and send a copy of the Company’s DNC policy to persons that request it
• Add the phone number of persons that request to be placed on the Company’s DNC list
• To view “Frequently Asked Questions” about the DNC rules
• Send Questions concerning DNC requirements to ANICO Corporate Compliance
• To enter phone numbers to determine whether the numbers are on the National or Company DNC
lists
Some states maintain a separate State DNC list and have additional rules…it is the agent’s responsibility
to know their state’s requirements.
Anti-Money Laundering (AML) Training
American National (ANICO) has implemented an AML program to comply with federal anti-money
laundering regulations for insurance companies effective May 2006. The regulations apply to all
Individual Life Insurance and Annuities (includes individually sold group products), Individual Registered
Life Insurance and Annuities, Term with Return of Premium and Group Registered Variable Annuities.
As a result, in order to obtain an appointment with the Company, all producers are required to provide
proof that they have completed basic AML training within the last 12 months that is acceptable to the
Company, and they must complete the Company-Specific training course. Producers will be required
to receive periodic AML training in order to maintain their appointment.
• AML training is required for every ANICO producer and is offered at no cost to producers appointed
with ANICO.
• American National does not issue new business from any producer who has not completed the
required AML training.
Training requirements are:
• Completion of LIMRA’s basic AML training course or another American National approved basic
training course.
• Completion of American National’s company-specific training course (Company Guide to AntiMoney Laundering).
Information regarding AML Training Requirements is available at IMG’s Web site under the following
tabs; Compliance, Anti-Money Laundering Information.
ANICO producers can access LIMRA’s training course and ANICO’s company-specific training course
at www.aml.limra.com
The producer’s ID will be the first four digits of his/her last name and the last six digits of his/her social
security number. The temporary password will be his/her last name (no Sr., Jr., and no upper case).
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Compliance 90
Once a producer had completed both courses, LIMRA will notify ANICO of the “Course Completed”
status and our files will be updated to reflect completion of both training requirements. However,
if only one course is completed, LIMRA will verify completion of that course only. Producers must
complete both courses in order to fulfill ANICO’s AML training requirements.
What if the producer has completed the basic course through a provider other than LIMRA?
1. The producer must provide appropriate documentation that they have completed training through
another provider. Form CA-2006-1 (Certification of Completion-Anti-Money Laundering Training) is
available at the Independent Marketing Group Web site (www.img.anicoweb.com) in the Compliance
Issues section and can be submitted, along with evidence of completion of the course, to American
National when requesting credit for an alternative course. Page 2 of CA-2006-1 outlines specific
instructions for completing this form. ANICO has approved over 40 alternate courses, and you can
find a list of currently approved course providers in the Compliance Issues section of the Web site.
2. The producer must also complete ANICO’s company-specific course, which is available at the
Independent Marketing Group Web site. Producers may access E-Agent and complete the course,
or go to the Compliance Issues section, print the Company Guide to Anti-Money Laundering,
complete the Receipt and Acknowledgement section, and return to American National. If the
producer requires assistance accessing E-agent, they can contact our Field Support Center at
1-888-501-4043, option 1.
Form CA-2006-1 or questions about this form should be directed to:
Judith L. Regini, AVP, Corporate Compliance
Chief AML Compliance Officer
P. O. Box 1896, Galveston, TX 77553-9902
Phone: (800)933-5975
Fax: (409) 621-3885
Email: [email protected]
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