Key Trend on New Suitability Forms
As you know, we rolled out new suitability forms and product comparison forms nationwide over the weekend. We’ve already noticed a key trend however that I wanted to pass along to you from Eric Stanley, our compliance director:
Anytime a rider has a fee, the corresponding needs/objectives must be selected as well. If the rider has no charge, it does not have to be selected. What we are seeing is a trend of apps coming in with for charge riders selected, but the corresponding need/objective not being selected. This is most common right now on PE Plus. We know that producers purchase this for the bonus, but the rider is called “Enhanced Liquidity” so that has to be selected. On Firelight, they do get a warning message that it is inconsistent with the product chosen and they are bypassing the warning. I can see this causing frustration if we do not get out in front of it. Anything you can do to help push that message would be great.
Others where you may see this: BCA and Ascent Pro & Ascent Pro Bonus (where income rider or death benefit rider (for BCA) may not be marked as necessary).
Also I wanted to make sure to provide you with the new step-by-step guides to accompany the new national suitability form and product comparison worksheets. They will be very valuable resources for you and your producers moving forward.