Accredited Investor Form (Page 4 of 4) in pdf

Accredited Investor Qualifi cation

The limits on surrender charges for “Senior consumers” do not apply to those applicants who are considered

Accredited Investors. For applications received after December 30, 2010, we will be able to issue all products

regardless of the applicant’s age if they qualify as an Accredited Investor.

The applicant must certify they are an Accredited Investor based on at least one of the following qualifi cations:

•

The applicant’s net worth (either individually or with their spouse, if any) exceeds $1 million at the time of

application (real estate equity can be included in this calculation).

•

The applicant’s individual annual income is in excess of $200,000 in each of the 2 most recent years, and

expected to be at this level in the current year.

•

The applicant’s annual income, jointly with applicant’s spouse, is in excess of $300,000 in each of the two

most recent years, and expected to be at this level in the current year

Please note: The Accredited Investor qualifi cation will only be available during the transition period. Once the BAA

10 is available for use in Florida, we will discontinue allowing sales of the BAA 12 to Senior consumers using the

Accredited Investor qualifi cation. A new Accredited Investor Certifi cation form will be available and on the website

for sales occurring after January 1, 2011.

New Producer Conduct Rules

In addition to product changes, the state’s new law also includes new regulations regarding producer conduct.

Those regulations include:

•

Prohibition against the designation of an agent or his or her family member as a benefi ciary unless they

have an insurable interest. In addition, there is a new prohibition against an agent or his or her family

member from being designated as trustee, guardian, or attorney in fact, unless they are a family member

of the policy owner or insured or it is a bank/trust company duly authorized to act as a fi duciary.

•

New exemptions to Continuing Education requirements if a producer is not actively selling in the state.

•

New language regarding suspension/revocation of producer license. If the license was suspended or

revoked relating to the sale of a person 65 years or older, the department may not thereafter grant or issue

any insurance license to the individual.

•

Increased fi nes for willfully twisting, churning, or submitting fraudulent signatures from $40,000 to

$75,000.

As always we appreciate your business and value the long-term partnership, thank you for making 2010 a record

year and we look forward to 2011.

If you have any questions about these changes, please contact your Marketing Organization.

Accredited Investor Form Page 4