PDF California 4-Hour Annuity Training Course - Infinity Schools

California 4-Hour Annuity Training Course

4 Hour California Insurance Continuing Education Course

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Table of Contents

Section I

Introducing Types of Annuities

Defining Annuities

1

Annuity Types According To When Benefits Are Paid Out

1

Define Immediate Annuity

`

1

Types of Immediate Annuities

3

Define Deferred Annuities

4

Advantages of Deferred Annuities

5

Distinguishing Between Immediate Annuity and Deferred Annuity 5

Annuity Type According To How And When Premiums Are Paid

6

Define Single Premium Annuities

6

Define Flexible Premium Annuities

6

Distinguish Between The Characteristics Of Single Premium

Annuity vs. Flexible Premium Annuity

6

Annuity Type According To Investment Options Offered

7

Define Variable Annuities

7

Variable Deferred Annuities

7

Define Fixed Annuities

7

Define Indexed Annuities

9

Variable Annuity vs. Variable Immediate Annuity

11

Equity-Indexed Annuities vs, Other Fixed Annuities

11

Section II The Affect Of Fixed, Variable, and Index Annuity Contract

Provisions on Consumers

12

Contract Provisions Common to Annuities

12

Interest Rates and Compensation

12

Issue Ages

13

Maximum Ages For Benefits to Begin

13

Crisis Waivers

14

Riders vs. Waivers

15

Premium Payments

15

Settlement Options Upon The Death of The Owner or Annuitant 15

Surrender Charges

17

Policy Administration Charges and Fees

18

Withdrawal Privilege Options

18

Annuitization Options

18

Annuity Contract Provisions Common To Fixed Annuities

18

Death Benefits

19

Charges and Fees

19

Interest Rate Strategies

20

Crediting Methods

20

Minimum Guaranteed Interest Rates

21

Low Interest Rate Environment Impact on Interest Rates

21

Annuity Contract Provisions Common To Variable Annuities

22

Variable Options

22

Fixed Options

22

Charges and Fees

22

Dollar Cost Averaging

23

Annualized Interest Rate Calculations On Bonuses That Apply

To Fixed Accounts

24

Death Benefit Guarantees

24

Living Benefit Guarantees

24

Contract Provisions Common To Indexed Annuities

24

Primary Interest Crediting Strategies

25

Combination Methods

26

Spreads

26

Cap Rates

26

Participation Rates

27

Minimum Guaranteed Interest Rate

27

Impact of Premature Surrender Charges

27

Charges and Fees

27

Considering Available Riders

27

Life Insurance Riders

27

Taxation of LTC Benefit Riders

28

Terms of Riders

28

Differentiate Between Crisis Waivers and Long Term Care Riders 28

Loan Provisions

29

Section III The Senior Market, Required Disclosures and Sales Practices

The Senior Market and Their Risks

30

Senior Citizens and Surrender Charges

30

The Senior`s Investment Objective

30

Required Disclosures

31

AB 2107

31

Specifics of Disclosures

32

Types of Disclosures

32

Disclosures and The Prospectus

33

Fair vs. Unfair Sales Practices

33

Living Trust Mills

34

Warning From Attorney General To Seniors about "Living Trust

Mills" and Annuity Scams

35

Understanding SB 620

36

Fair Sales Practices

36

Section IV Annuity Sales Practices and Prohibitive Sales Practices

Appropriate Advertising

37

Advertising For Persons 65 Years and Older

37

Prohibited Sales Practices

39

Selling Annuities for Medi-Cal Eligibility

39

In-Home Solicitations: 24-hour Notice requirement for

persons 65 years and older

41

Sharing Commission With Attorney

42

Unnecessary Replacement

42

Bait and Switch

44

Suitability Standards

44

Fact Finding Assessing Annuity Suitability

44

Suitability of Riders

45

Continuing To Pursue Suitability

45

Senior Protection In Annuity Transactions Model Act

45

Insurer Sales Supervision Standards

46

Section V Policy Cancellation and Refunds & Legal and

Ethical Obligations

48

Policy Cancellation

48

Free Look For Persons 60 Years and Older

50

Policy Refund

51

Legal and Ethical Obligations

51

Legal Authority

52

AB 2107 (Scott, Chapter 442), Elder Abuse:

53

Section VI -- Keeping The Annuity Sale Suitable For The Consumer

54

Challenges For Consumers and Annuity Sales Personnel

54

Appropriate Disclosures

54

Suitable Sales

54

Supervision and Monitoring

54

Various Distribution Channels

54

Industry Regulations

54

Ensuring Compliance

55

Consumer Considerations

55

Evaluating The Suitability of An Annuity

56

Tracking Annuity Sale Abuses

56

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