IMOs Have Tricky Path To Sales Under DOL Rules
June 27, 2017 by John Hilton
Insurance marketing organizations (IMOs) are playing a guessing game while selling annuities under the Department of Labor fiduciary rules, experts say.
The issue is how to sell variable and fixed indexed annuities for the remainder of the year. Phase one of the DOL rules went into effect June 9, but with two “transition” exemptions: the Best Interest Contract Exemption (BICE) and Prohibited Transaction Exemption (PTE) 84-24.
Ideally, IMOs and field marketing organizations (FMOs) would sell under the transition BICE, said Michael P. Kreps, a principal at Groom Law Group. The transition BICE is less onerous than the transition PTE 84-24.
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