You must complete the contracting packet for Alternative Brokerage Annuities. Also any carriers that you are currently contracted to write annuities with will need to be transferred to Alternative Brokerage so be sure to include this information somewhere on the documents you submit.
State Insurance License
You must provide a copy of your personal state license for every state you want to sell in
If you will be doing business as your company, and having commissions paid to your company you must provide your company’s state license for all states you intend to sell in
EFT and Void Check
Your void check must show your name, or the name of your company
The address listed on the check must match either your mailing, residential, or business address
If you are unable to provide a void check you must submit a letter from your bank that lists your name, address, transit number, and account number. This must be on bank letterhead and signed by a bank employee.
Errors & Omissions (E&O)
You only need to submit the declarations page
Coverage must be current, when expired you will need to submit a copy of your current E&O to Alternative Brokerage to keep your file up to date
You must be listed as covered by the policy on the declarations page
If doing business as your company both you and your company must be listed as covered by the policy
State Annuity Training (NAIC Annuity Training)
You must provide a certificate showing you’ve completed your states required Annuity Suitability training
The certificate must show your name, the date taken, and the course provider
If your state requires continuing education courses for Annuities you must provide a copy of the certificate for the most recently completed course
Anti-Money Laundering (AML)
AML must have been taken within the last 2 years (some carriers like Oxford Life will require you take it every year)
If taken with LIMRA you need to provide the most recent date you completed the course and a screen shot that shows the course title, date you completed it, and your name (some carriers do not subscribe to LIMRA and by providing us with this screen shot it will be less likely the carrier will require you to take another AML course)
If taken outside of LIMRA you must provide a certificate of completion that shows the date you took the course, your name, the name of the course, and the name of the provider
There are several forms that require your signature in the contracting and these require an original or ‘wet’ signature
Electronic signatures will not be accepted
Documents that require your ‘wet’ signature are: the EFT form, page 2 of the legal questions, the Authorization to Obtain Producer Database Report, and the Signature Authorization form
If you answer all questions as ‘No’ then you only need to sign page 2
If you answer any question with a ‘Yes’ you will need to provide an explanation for each yes (see guide to explanations below)
Explanations for 'Yes' Answers on Legal Questions
Your explanation should follow the general format of: Incident Date, Action that caused Incident (short), Reason behind the Action, and finally an explanation of the incident (see 3 part formula for explanations)
When crafting your explanation using this 3 part formula will help:
1) What’s the situation?
2) What did you do to correct the situation?
3) What action are taking to make sure the situation does not happen again?
Include any official documents that relate to the resolution of the incident
Explanations for Bankruptcies/Bad-Debt/Vectors/Tax-Liens/Felonies
If yourself, or your agency, is either currently going through, or has been through any of the situations referenced above, you/they will to to provide a formal typed letter of explanation. In this letter you still follow the 3 part formula but each part should be it’s own paragraph (No more than 3 paragraphs)
Paragraph 1: What’s the situation?
Paragraph 2: What you’ve done to correct the situation
Paragraph 3: What you’re doing to prevent it from happening again (do NOT mention sell more products, this is a hypothetical statement)
Letter should fit on one page
1) Do you have an offer or an acceptance letter? (If so please provide)
2) Have you made any payments? (Supply proof of at least 3 consecutive payments)
1) Supply letter of discharge
Please Note – providing explanations/letters with your initial contracting does not mean that the carrier will be satisfied with the information given and they may request more information or detail on a certain aspect of the situation.