Reserving Requirements, Premium Volume Top DOL’s IMO Exemptions
January 23, 2017 by Cyril Tuohy
Insurance intermediaries will need to reserve 1 percent of annual premium from fixed annuity sales and sell at least $1.5 billion in fixed annuities for each of three preceding years to qualify as a financial institution under the Department of Labor’s class exemption.
The class exemption allows insurance intermediaries such as independent marketing organizations (IMOs) to sell fixed annuities under the best interest contract exemption of the DOL’s conflict of interest rule, also known as the fiduciary rule. The requirements are not similarly imposed on other entities considered financial institutions, such as banks, broker-dealers and registered financial advisors (RIAs).
Click HERE to view the full story via INN; subscription required