Draft Labor Regulations Allow Annuity Commissions
November 6, 2023 by Allison Bell
New draft regulations released Tuesday by the U.S. Department of Labor would let annuity sellers continue to earn commissions for selling non-variable indexed annuities.
Independent agents who operate under one set of Labor Department regulations, Prohibited Transaction Exemption 84-24, would have to become fiduciaries, but they could continue to earn commissions. They would have to disclose their initial commissions and renewal commissions, both in terms of dollar amounts and as a percentage of the premium payments.
Wink’s Moore on the Market: U.S. Department of Labor– are you out of your finger lickin’ mind?
“Labor Department analysts estimate that only 1,577 insurance and brokers use the exemption to earn commissions for selling annuities.”
Oh my word, this is going to be sticky and paintful… -sjm