Allianz Updates

Published January 4th, 2017 in News, Updates and Announcements | No Comments »

Happy New Year! We wanted to share a number of updates from Allianz this week.

To view Rate Watch for January rates and business rules, click here.

To view the January letter of instruction, click here.

As you may recall, we launched new fixed index annuity (FIA) applications on October 17, 2016. While we are currently still accepting the March 2016 revision of the application, beginning January 16, 2017, the new application (with revision date 10/2016) will be required prior to issue. Please be sure you are using the new application and that you recycle any old versions you may have.

2017 tiers
Allianz will offer the Allianz Preferred and standard producer production bonuses to eligible producers using the following tiers:

Production Preferred bonus percentage Standard bonus percentage
$1,500,000 – $3,999,999 0.50% 0.25%
$4,000,000 – $5,999,999 1.00% 0.50%
$6,000,000 – $11,999,999 1.50% 0.75%
$12,000,000 and above 2.00% 1.00%


2017 tier lock
We also evaluate the opportunity to continue to reward you for your loyalty by allowing your 2016 production to positively affect your “starting point” for 2017 tiered compensation. For 2017, producers who earned at least a 1% bonus rate in 2016 will again not have to start from scratch for our agent tiered compensation program. As we did this past year, we will use your 2016 bonus rate and subtract one tier to determine your 2017 starting tier. For example, if your Allianz Preferred 2016 production level was $3 million and you achieved a 1.00% bonus rate, your starting bonus rate for 2017 will be 0.50%. And then, every time you achieve a higher production threshold according to the 2017 tiers, we will apply the new bonus rate retroactively to eligible production issued since January 1, 2017.

Impact of the DOL fiduciary rule
As we have discussed with many of you individually when you have asked us about the future of this program, we believe and have also heard directly from many entities who would be operating as financial institutions under the new DOL fiduciary rule that participation in our Agent Tiered Compensation Plan would not be approved by them after the applicability date (April 10, 2017) of the DOL rule. As a result, at this time, we can only plan to offer tiered compensation to eligible producers until March 31, 2017 as noted below.

In addition to the qualifications outlined in the Preferred compensation guidelines, Allianz will pay the production bonuses to eligible producers for all applications that meet the following criteria:
·        Applications must be signed by March 31, 2017
·        Applications must be submitted by April 7, 2017
·        Applications must be issued by June 30, 2017
Bonus payments will generate automatically through March 31, 2017. For all other applications meeting the above criteria issued between April 1 and June 30, Allianz will make a one-time lump-sum payment in July 2017.

Retroactive proration of tiers due to discontinuation of the program as of March 31, 2017As a result of the decision to limit bonus to the first quarter, we understand that it may be difficult to meet the 2017 Preferred and standard bonus tiers. Therefore, Allianz will prorate the bonus tiers in March 2017. The following prorated tiers will be applied to eligible business retroactive to business issued on or after January 1, 2017.

Production Preferred bonus percentage Standard bonus percentage
$375,000-$999,999 0.50% 0.25%
$1,000,000-$1,499,999 1.00% 0.50%
$1,500,000-$2,999,999 1.50% 0.75%
$3,000,000 and above 2.00% 1.00%

 

What happens if the DOL rule is repealed or the applicability date of the rule is deferrred?
Many of you have asked us this question, and we are actively evaluating potential options that we could pursue if the rule is either repealed or the applicability date is delayed past the current date of April 10, 2017. Due to the wide range of uncertainty around potential scenarios involving the DOL rule, we are not in a position at this time to conclude as to how any such future change could affect the continuation of this program after March 31, 2017. Please be assured that we will continue to monitor developments in Washington, and we will keep you posted as the first quarter of 2017 progresses. Please also note that if the program is continued beyond March 31, 2017, the retroactive proration of the tiers described above will not occur.