UPDATE Be Prepared for the Mailing Address Change

Transcription

1 American General Life Companies MARKETING UPDATE September 11, 2009 Be Prepared for the Mailing Address Change Bulletin You have received previous communications regarding the mailing address changes for New Business and Licensing & Commissions effective September 21, These changes impact mailings for both American General Life Insurance Company and The United States Life Insurance Company in the City of New York. Below are certain forms and supplies which are being updated to facilitate the changes. Policy number schemes will also be changing. For esubmission agencies, please see the the appropriate section in this bulletin. Revised New Business Envelopes Courtesy reply envelopes for New Business imprinted with the new addresses will be available for order in Forms Depot on the producer Web site, estation.aglife.com, on September 11, 2009: AGLC (9 x 12 envelope) AGLC (#9 envelope) New Licensing & Contracting Forms Licensing & Commissions also announces multiple updated forms, reflecting the new mailing address changes and other minor revisions. While the old forms will be accepted through December 31, 2009, these forms will be available in Forms Depot on September 18, Every effort should be made to begin using the new forms as soon as they are available. Questions about these changes can be directed to the Licensing and Commissions Call Center. The forms that have been revised will be available on Forms Depot as follows: Form Name Agent/Agency Address Change Form Agency/Corporate Coding Grid Annuity Compensation Commitment Letter Appointment Application Assignment of Commissions Commitment Letter Direct Deposit Authorization IW Election Form Licensing & Contracting Transmittal Form Licensing & Contracting Change Form Release of Assignment Termination Request Form Form Number AGLC Rev0809 AGLC Rev0809 AGLC Rev0809 AGLC Rev0809 B Rev0809 AGLC Rev0809 L1341 Rev0809 AGLC Rev0809 AGLC Rev0809 AGLC Rev0809 AGLC Rev Rev0809 Continued on the next page American General Life Companies, is the marketing name for the insurance companies and affiliates comprising the domestic life operations of American International Group, Inc., including American General Life Insurance Company and The United States Life Insurance Company in the City of New York. FOR PRODUCER USE ONLY NOT FOR DISSEMINATION TO THE PUBLIC

2 Policy Number Scheme Changes In addition to our mailing address change transition to our Houston facility, American General Life Companies wants to make our important distribution partners aware of the upcoming change in our policy number schemes. While this will affect some distribution partners more than others, we felt it was important that you had this information before the changes occur. Effective September 14, 2009, our policy number schemes will be as follows: AGL Term policies will begin with AGL Universal Life policies will begin with AGL Indexed Universal Life policies will begin with AGL Variable Universal Life policies will begin with AGL Health policies will begin with AGL Whole Life policies will begin with USL Term policies will begin with USL Universal Life policies will begin with USL Indexed Universal Life policies will begin with USL Whole Life policies will begin with YM UM A7 VM YMC YH WM WMU A7 UH Information Specific To esubmission Agencies We will continue to use an E in the third place of the policy number to identify an esubmitted policy. For esubmission Agencies Who Use Policy Number Stickers: esubmitted applications will transition to the new policy schemes only as agencies run out of existing stickers. Please continue to use your existing policy stickers until they are depleted. Your order for new stickers will be filled with the new policy number schemes but you are not required to order new stickers until the old stickers have been used. You may continue to order your stickers via the same fax number previously used. An updated Image Only Instruction Packet with the above policy number updates will be distributed this week via a separate communication. American General Life Companies remains committed to serving you and your clients in the most efficient and effective way possible. You may continue to contact us through your usual channels with any questions you may have. Thank you for your business and your support. American General Life Companies, is the marketing name for the insurance companies and affiliates comprising the domestic life operations of American International Group, Inc., including American General Life Insurance Company and The United States Life Insurance Company in the City of New York. FOR PRODUCER USE ONLY NOT FOR DISSEMINATION TO THE PUBLIC

3 Please join Tim Heslin, Vice President, Product Line Business Leader and Mike Murphy,Vice President, Marketing, as they introduce American General s new ContinUL Extend Plus SM guaranteed universal life insurance product. Highlights of the presentation will include discussion of u product design which builds industry-leading cash values for a guaranteed UL product u product flexibility that allows policy owners to select a guarantee period while retaining the ability to adapt to future changes u sales ideas and scenarios Don t forget to join us September 15, 2009 Date: Tuesday, September 15, 2009 Time: 11:00 AM Central Time To connect to the Webinar Audio Toll-free number: Code: Web Presentation Web meeting address: Meeting number: Code: Mark your calendar for a live presentation on this exciting new product. Policies issued by American General Life Insurance Company, 2727-A Allen Parkway, Houston, Texas and The United States Life Insurance Company in the City of New York, 70 Pine Street, New York, NY The underwriting risks, financial obligations and contractual obligations, and support functions associated with the policies issued by American General Life Insurance Company (AGL) and The United States Life Insurance Company in the City of New York (USL) are the issuing insurer s responsibility. USL is authorized to conduct insurance business in the state of New York. Policies and riders not available in all states. American General Life Companies, is the marketing name for the insurance companies and affiliates comprising the domestic life operations of American International Group, Inc. For additional information contact your American General Life Companies representative All rights reserved. AGLC FOR PRODUCER USE ONLY NOT FOR DISSEMINATION TO THE PUBLIC.

4 NDERWRITING NSIGHTS Vol. 2, Issue 2 September 2009 Case Studies for American General s Better Choice Preferred Underwriting and Healthy Credits Program* Case #1: Better Choice Preferred 61-year-old male client seeking $10 million of 20-year term coverage for income replacement and estate planning needs. The presenting issue was a history of Barrett s esophagus. The case had been shopped informally to two other carriers with quotes of StandardPlus and went formal to one of those carriers, resulting in a formal offer of StandardPlus. The total required premium continued to complicate the sale with the client. Due to discussions about our Better Choice Preferred program, the agency opened discussions with American General Life Companies to review the case. The client s condition was well-followed, welldocumented and showed a history of multiple biopsies with no dysplasia present. There was also a recent history of ventricular bigeminy on stress testing, followed by a normal stress echo. Both of these impairments were assessed at no debits, which qualified the case for our Better Choice Preferred program. Upon which we then went to the preferred criteria for final class. Since the client was being treated for hypertension, with excellent control, our formal offer was Preferred Nontobacco. The case was closed in less than 38 days from informal to placement for $65,000 of recurring premium! Case #2 Healthy Credits For more information, contact: 60-year-old female seeking $40 million of 20-year term was unable to obtain best class for term due to her Hypertension history, build, slightly high glucoses (with normal A1c s). Four other carriers could not move her to best class. Continued on the next page FOR PRODUCER USE ONLY - NOT FOR DISSEMINATION TO THE PUBLIC

5 NDERWRITING NSIGHTS We took into account a recent normal thallium, normal CBC, normal CXR, Normal Mammogram and good physical and were able to use our Healthy Credits and allow best class! Total premium is $149,265! Could this be your client? Partner with your American General Life Companies underwriting team today; we re open for business and we re here to help you win those difficult cases! *American General Life Companies Better Choice Preferred and Healthy Credits underwriting program is endorsed by our reinsurers including both our autobind and internal retention. American General Life Companies, is the marketing name for the insurance companies and affiliates comprising the domestic life operations of American International Group, Inc., including American General Life Insurance Company and The United States Life Insurance Company in the City of New York. FOR PRODUCER USE ONLY - NOT FOR DISSEMINATION TO THE PUBLIC

6 Vol. 2, Issue 27, August 2009 Advanced Sales For more information, contact: MAKERS Product Options for Executive Bonus Arrangements The classic executive bonus arrangement provides a business owner-employee a combination of life insurance protection and cash value accumulation that can be accessed in the future to supplement retirement income. But the executive bonus idea is not just for owner-employees. You can use it for any key employee and can selectively choose whom to cover and for how much. The insurers of American General Life Companies offer several good product options for executive bonus, depending on the client, the objectives and the budget. Elite Global Plus SM : A great plan to use in the classic executive bonus arrangement where the objective is additional life insurance and cash value accumulation and the client can afford to properly fund the policy. This plan offers the best potential for cash values when it is correctly funded. ContinUL Extend Plus SM : For the client who needs guaranteed life insurance coverage to a specified age, along with the potential for substantial cash value accumulation based on declared fixed rates. Coverage can be guaranteed to retirement or beyond with premiums funded to stop at retirement, if desired. AG ROP Select-a-Term SM : Falls between regular term and UL. It offers life insurance protection for a fixed period, such as to planned retirement, plus a cash value that grows to a full return of all base premiums (except for riders and ratings) at the end of the level premium period. The employee receives coverage to retirement and if he/she survives until that time, gets some cash to help transition from employed to retired. AG Select-a-Term : A pure protection plan with no cash value benefits, but the lowest annual cost. It can provide, at a guaranteed level premium, guaranteed coverage to retirement (with options to continue coverage subject to annual rate increases). A good choice for the client who is looking for the highest possible death benefit for the lowest annual premium. continued on next page FOR PRODUCER USE ONLY NOT FOR DISSEMINATION TO THE PUBLIC

7 MAKERS Let s examine these four possibilities for a Male, Age 42, Preferred Plus seeking $500,000 of level life insurance coverage. Male, Age 42, Preferred Plus Non Tobacco, $500,000 Death Benefit OBJECTIVE Protection Plus Cash Value Guaranteed Protection Plus Cash Value Protection Plus Premium Back Lowest Cost Protection PRODUCT ANNUAL PREMIUM PAID TO AGE 65 PROJECTED CASH VALUE AT AGE 65 DEATH BENEFIT GUARANTEE Elite Global Plus $8,109 $386,309 1 Age 72 ContinUL Extend Plus AG ROP Select-a- Term (23 years) AG Select-a-Term (23 years) $3,530 $92,133 2 Age 86 $1,830 $42,090 3 Age 65 $630 0 Age 65 Premium rates current as of August 2009, state of Texas; rates may vary by state. Premiums available for other rate classes, ages and payment plans.premium charges depend on evidence of insurability. Premiums increase at the end of the guaranteed term if policy is renewed. Death benefit remains level. 1 Elite Global Plus cash value based on current, non-guaranteed assumptions including a 9% assumed rate of return. 2 ContinUL Extend Plus cash values based on current, non-guaranteed assumptions including a 5% assumed interest rate. 3 AG ROP Select-a-Term cash value is guaranteed if insured survives and policy is maintained to the end of the term period. The policy accumulates a cash value that first appears beginning the fifth policy year. At the end of the level premium period, the cash value of the in force policy provides the endowment benefit equal to the total of all cumulative premiums paid, less any charges for substandard ratings, riders and any outstanding loan balance. In an executive bonus arrangement, the employee s annual cost is just the taxes on the premium/ bonus and where desired, the employer can double-bonus to cover the tax as well. No matter which plan is used, the bonus is deductible to the employer as salary if considered reasonable compensation. Pick one? Actually there is no need to pick just one plan to use in any business. You can mix and match to meet the needs of the employees and the budget of the employer. The employer could even offer to pay the premium for AG Select-a-Term, but allow the employee to add his/her own out-of-pocket premium to upgrade to AG ROP Select-a-Term or ContinUL Extend Plus. For more information on Executive Bonus arrangements or on the life products discussed herein, visit our producer Web site ( or contact your American General Life Companies representative. continued on next page FOR PRODUCER USE ONLY NOT FOR DISSEMINATION TO THE PUBLIC

8 MAKERS Policies issued by: American General Life Insurance Company 2727-A Allen Parkway, Houston, Texas ContinUL Extend Plus, Policy Form Number Elite Global Plus, Policy Form Number AG ROP Select-a-Term Policy Form Number AG Select-a-Term Policy Form Number The United States Life Insurance Company in the City of New York 70 Pine Street, New York, New York ContinUL Extend Plus, Policy Form Number 05337N Elite Global Plus, Policy Form Number 08444N AG ROP Select-a-Term Policy Form Number 08701N AG Select-a-Term Policy Form Number 09007N The underwriting risks, financial and contractual obligations and support functions associated with the products issued by American General Life Insurance Company (AGL) and The United States Life Insurance Company in the City of New York (USL) are the issuing insurer s responsibility. All guarantees are subject to the claims-paying ability of the issuing insurance company. USL is authorized to conduct insurance business in the state of New York. American General Life Companies, is the marketing name for the insurance companies and affiliates comprising the domestic life operations of American International Group, Inc., including AGL and USL. Policies and riders not available in all states. Important: Prior to soliciting business, be certain that you are appropriately licensed and appointed with the insurer and that the product has been approved for sale by the insurer in that state. If uncertain, contact your American General Life Companies representative for assistance All rights reserved. REV0809 FOR PRODUCER USE ONLY NOT FOR DISSEMINATION TO THE PUBLIC

9 The latest Dalbar Rankings are in and estation, our producer website, is now ranked #1 among the top 25 financial professional websites. Dalbar s WebMonitor ranking is based on evaluation of the following categories: functionality, usability, content currency, consistency and behavior centricity. In addition, estation continues to have page-loading times that are faster than the industry average. From pending case status updates to customer correspondence to relevant content, we are committed to continually improving our producer website so you can get the information you need when you need it. Watch for more exciting enhancements later this year. If you aren t using the industry s #1 producer website, now s the time to get on board estation and see what you re missing. Just go to the site and click on Register in the upper right-hand corner of the screen. Stay connected! For more information, contact: EXCELLENT 2 st 2009 We re also proud to announce that American General Life Companies consumer website, has landed in the Top 10 for the first time, with a #9 ranking a jump of 7 spots! As part of our Go Green initiative, American General policyowners now have the option to receive their premium notices via and pay online. A plethora of tax resources is now available for client viewing, too. See the many eservice capabilities available for your clients at VERY GOOD 2 st 2009 American General Life Companies, is the marketing name for the insurance companies and affiliates comprising the domestic life operations of American International Group, Inc., including American General Life Insurance Company and The United States Life Insurance Company in the City of New York All rights reserved. FOR PRODUCER USE ONLY NOT FOR DISSEMINATION TO PUBLIC

10 American General Life Companies NEW BUSINESS UPDATE September 4, 2009 Bulletin Reminder of Requirements Relating to Application Amendments and Document Signatures An amendment to the application is either a counter-offer or a clarification that is made to the application which modifies the original information submitted. An amendment is required any time information, which becomes part of the policy, is changed or revised during the approval process. Applications, forms, amendments questionnaires, illustrations and other documents are required to be signed by the client and/or producers as part of the insurance sales process. It is crucial that these documents be accurately signed and dated by the appropriate parties. By following the guidelines below, you can assist in placing your business in force much faster. Amendment Guidelines As a general rule, the following are situations which require a signed amendment to the application. Changes to: Risk Classification Plan of Insurance Amount of Insurance Benefits The following are situations which will not be amended, but require a corrected, re-signed and re-dated Part A Application and/or Part B Exam: Reassigning of the Proposed Insured, Other Insured or Owner Changing the Replacement Question from no to yes Missing Signature Date(s) on the Part A Application and/or Part B Exam Signature Guidelines Proposed Insured The proposed insured s signature is required to be on the Part A Application at submission. The case will not be underwritten without the proposed insured s signature. If the applicant is under age 15, the signature of the parent or guardian is required. If the parent or guardian is also the owner of the policy, he/she must sign on both the proposed insured s and owner s signature lines. Power of Attorney signatures require a copy of the power of attorney (POA) form. Continued on the next page American General Life Companies, is the marketing name for the insurance companies and affiliates comprising the domestic life operations of American International Group, Inc., including American General Life Insurance Company and The United States Life Insurance Company in the City of New York. FOR PRODUCER USE ONLY NOT FOR DISSEMINATION TO THE PUBLIC

11 Owner If the proposed insured and the owner are the same person, only the applicant is required to sign on the proposed insured s signature line. Joint Owners, Co-owners or multiple owners require all signatures. Trusts, Corporations and Partnerships require the signature and title of at least one trustee or representative. Signatures Obtained on Delivery Replacement Forms cannot be signed on Delivery. (Must be signed prior to or on the same day as the Application.) Signatures that cannot be obtained on delivery and must be obtained prior to producing policy pages: Indexed Universal Life Products Part A: Must have all required signatures on the appropriate state form Part B: Must have all required signatures on the appropriate state form Questions regarding this communication may be directed to the New Business Contact Center. American General Life Companies, is the marketing name for the insurance companies and affiliates comprising the domestic life operations of American International Group, Inc., including American General Life Insurance Company and The United States Life Insurance Company in the City of New York. FOR PRODUCER USE ONLY NOT FOR DISSEMINATION TO THE PUBLIC