NIGO Resolution Timing for Fixed Annuities Shortened to 45 Days Effective 09/01/21

Effective September 1, the normal 90-day resolution window for fixed deferred, indexed, and income annuity contracts that are not in good order (NIGO) will be shortened to 45 days. If issues with paperwork or missing information aren’t resolved within 45 days, the application will be canceled. 

Once the paperwork is in good order, we’ll request transfer funds from the current carrier (if applicable). Transfers will still follow our standard timing of 90 days once the paperwork is in good order.

We’ll work diligently with you to quickly resolve any items that are not in good order within the 45-day window and to obtain funds from ceding carriers.

As a reminder, new applications for these products must be signed by September 30 and received in the Principal home office by October 15.  

Servicing existing fixed annuities

We recently announced our exit from retail fixed annuities and the evaluation of possible transactions for our in-force block. These types of transactions take time, and it’s too early to say what the administrative and servicing provisions will be as the result of any transaction. It’s possible that we could retain the customer service responsibility long-term. Until a decision has been made, there will be no changes to the administration of in-force fixed annuity business. You and your clients will continue to receive the same high level of service you’ve come to expect from Principal.