California Product Changes, Effective 9/7/17 – Revised Forms Available Now
EquiTrust Product Changes for California, Effective Today, 9/7/17
At year-end 2016, California passed a legislative bill (Assembly Bill 2884) that places certain restrictions on fixed annuity surrender charges. Further surrender-schedule revisions than those originally announced are necessary, plus the removal of the MVA on four products.
Products with Reduced Surrender Charge (9 years: 8.3, 7.4, 6.5, 5.6, 4.7, 3.8, 2.9, 1.9, 0.9%) and No MVA for California Clients:
• MarketValue Index
• MarketTen Bonus Index
• DynaMARC Index
• Certainty Select
Products Not Impacted
• ChoiceFour – California variation announced 1/1/17 applies
• Confidence Income – No changes
Previously Issued Contracts and Surrenders
• Contracts with effective dates after 1/1/17 will be reissued with the
revised surrender schedule and MVA removal.
• Full and partial surrenders on contracts issued after 1/1/17 which
resulted in surrender charges/MVA will be adjusted.
Reissued contracts will be mailed directly to customers, and writing agents will be notified in advance of the mailing. Additional details to follow.
Revised Forms/Materials on Website and E-Apps Now
Revised Disclosure Statements and sales materials reflecting the surrender charge and MVA changes are available now on the Agent Website and FireLight (E-Applications), and apply to new sales of MarketValue Index, MarketTen Bonus Index, DynaMARC Index, and Certainty Select.
Detailed Transition Rules - click here