Insurance & Investments Simple. Fast. Easy.

Transcription

1 Insurance & Investments Simple. Fast. Easy.

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3 Qualification Standards FOR ADVISORS AND AGENCIES BASED ON INDIVIDUAL BUSINESS Qualification Period January 1, 2016 to December 31, 2017 Destination San Diego, California Hotel del Coronado Program Dates Monday April 23 to Thursday April 26, 2018

4 HOW TO Qualify TOP 100 ADVISORS Top 100 qualifiers that reach 100,000 credits TOP 15 AGENCIES Top 15 qualifiers that reach; 2,500,000 credits 1 invitation 5,000,000 credits 2 invitations (maximum of 2 attendees per grouped Agency marketing entity)

5 ELIGIBILITY You must have a Producer s Agreement, General Agency (GA), Managing General Agency (MGA) or National Account Agreement with Empire Life in place prior to December 31, 2017 that is still inforce and in good standing at the time of the Program. For the purposes of Program qualification, eligible agencies according to Empire Life are those it defines as GAs, MGAs or National Accounts. Those agencies defined by Empire Life as Associate General Agencies (AGAs) or Regional MGAs are not eligible. If over 80% of your Program credits come from life and health business, you must have a persistency index 1 of at least 90% on that life and health business at the end of the qualification period, and a minimum new policy count of 10 life cases during the qualification period. Business booked in the last three months of the Program qualification period must still be inforce at the time of the Program. You must comply with all provincial and federal regulations, as well as Empire Life rules and standards of ethics and conduct. Empire Life reserves the right to decide whether or not to invite advisors or agency representatives who meet the qualification criteria, for any reason whatsoever, including current or ongoing compliance or conduct investigations. Agencies and Agency Principals: If you choose to qualify as an advisor, your agency s total credits will be reduced by the total Program credits you earned as an advisor. If you choose to qualify as the principal, your total Program credits will count towards your agency total. For example, if you qualify with 350,000 total credits and choose an advisor invitation, your firm s total credits are reduced by 350,000. Or, you can choose to not qualify as an advisor and have all 350,000 credits count towards your agency total. Advisors: Only business submitted under an Individual advisor code is eligible. Pooled business or business under a GA, corporate or joint FundSERV code is not eligible.

6 Advisor Qualification CRITERIA TOP 100 Top 100 qualifiers that reach 100,000 credits Life and Health Business All Life & Health products Qualification measure $1 NFYC 2 = 1.25 credit Excluded: business written on your life or your immediate family members. 3 Any policy that terminates during the qualification period without 24 months premiums paid will have the unearned FYC/credits deducted (chargeback). Investment Business SPIAs Guaranteed Interest and Treasury Interest Options Money Market Fund All other Segregated Funds Qualification measure $1 NFYC = 1 credit 2% of premium deposits generating NFYC = 1 credit Excluded: If business submitted by the end of the qualification period subsequently does not settle, the unearned credits will be deducted. Group (Employee Benefits) Business Group Qualification measure $12.50 of actual adjusted group premium (8%) = 1 credit

7 Once you are 50% on track to qualify, you will receive your monthly ranking and the credits of those directly ahead and behind you. This allows you to keep on track of where you are in the Top 100. A maximum of 62,500 Group credits can be combined with Individual credits to qualify as an Individual advisor. If your Group business is placed through an Individual advisor code, it is automatically credited (to the maximum). If your Group business is placed through a Group producer code, it may be credited, if the criteria below are met and subject to approval by Empire Life on a case-by-case basis: You must be the primary producer submitting business under the Group contract/producer code. You must ask Empire Life to combine your Individual and Group business. You can do so by contacting your Empire Life Account Executive. To qualify, business must be paid through, which means that it is totally settled with no outstanding requirements by end of business on Friday, December 29, 2017, as published by Empire Life. On cases with split commissions, the percentage of credits will be the same as the commission split (i.e., if commission is split 50/50 between 2 advisors, the credits will be split 50/50). If Empire Life contracts, commission schedules or compensation arrangements change, the ratio of NFYC and NFYC on premium deposits to credits may also change. New products may have different methodologies for calculating credits.

8 Agency Qualification CRITERIA TOP 15 Top 15 qualifiers that reach; 2,500,000 credits 1 invitation 5,000,000 credits 2 invitations (maximum of 2 attendees per grouped Agency marketing entity) Life and Health Business All Life & Health products Qualification measure $1 NFYC 2 = 1.25 credit Excluded: business written on your life or your immediate family members. 3 Any policy that terminates during the qualification period without 24 months premiums paid will have the unearned FYC/credits deducted (chargeback). Investment Business SPIAs Guaranteed Interest and Treasury Interest Options Money Market Fund All other Segregated Funds Qualification measure $1 NFYC = 1 credit 2% of premium deposits generating NFYC = 1 credit Excluded: If business submitted by the end of the qualification period subsequently does not settle, the unearned credits will be deducted.

9 To qualify, business must be paid through, which means that it is totally settled with no outstanding requirements by end of business on Friday, December 29, 2017, as published by Empire Life. If Empire Life contracts, commission schedules or compensation arrangements change, the ratio of NFYC and NFYC on premium deposits to credits may also change. New products may have different methodologies for calculating credits.

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11 GENERAL RULES You may not transfer your credits or persistency index to anyone else. Advisor transfers and status changes If a contracted advisor transfers from one agency to another during the qualification period, his/her credits, case counts and persistency indexes from all agencies are combined for the purposes of qualifying based on personal production. Each agency will retain or receive agency credits only for the period the advisor was contracted with that agency. Any transactions that reduce credits will affect the agency total where the advisor is/was contracted at the time the transaction occurs. The combined total for an advisor will be reported under the most recent active code. Changes of status (e.g. from advisor to AGA or MGA, or from an AGA to an MGA, or from a GA to an MGA) will be handled on an individual basis. Please consult your Empire Life Account Executive. Agency transfers and status changes If a contracted AGA or Regional MGA transfers from one MGA to another during the qualification period, the credits stay with the MGA where they were earned. Changes in your book of business ownership Changes will be handled on an individual basis. Please consult your Empire Life Account Executive. PUBLICATION OF RESULTS During the qualification period, Empire Life will provide an individual standings letter to advisors who are at a minimum of 50% on track to qualify. Qualification standings for advisors will be sent via their MGA, GA, Direct AGA (if applicable) or firm. Eligible agencies will receive an individual standing letter and a listing of all advisors with their rank. Standings will be published monthly. As part of the final program materials, qualifier standings will be published without credit totals. By accepting an invitation from Empire Life to attend the Program, you grant Empire Life the right to publish your name in program materials, in standings order, and to recognize you as a Top National or Regional Performer, if applicable. RECORDS The official records are maintained by the Empire Life Head Office and will be accepted as conclusive. All decisions made by Empire Life will be deemed final.

12 ONCE YOU VE QUALIFIED Who is invited to the Program? Advisors: the advisor and his/her spouse, significant other or life partner ( spouse ). Agencies: the principal that receives program standings and his/her spouse, significant other or life partner ( spouse ). There is a maximum of 2 attendees per agency. Since the purpose of the Program is to provide a business and networking environment for qualifiers and their spouses who contributed to their success, no substitutions will be allowed where there is no spouse or the spouse cannot attend. This includes assistants or other colleagues or associates, friends, children or other relatives. Once you have qualified, your attendance and that of your spouse is by invitation only from Empire Life and is not a contractual right. Attendance The Program is an optional event and attendance is not mandatory if you qualify for an invitation. If you do choose to attend, you must be prepared to: Agree to accept the travel and accommodation arranged for you by Empire Life; and, Attend all Program events including business sessions. The Program invitation must be accepted as awarded. There are no substitutions, exchanges for cash, credit or transfers available if you are, or your spouse is, unable to or chooses not to: attend the Program; accept any upgrade; or, use travel or accommodation arranged by Empire Life. Taxation As deemed by the Canada Revenue Agency, Program attendance for both the invitee and his or her spouse is a taxable benefit and will be reported as such on the invitee s T4A. The value will be based on, but not limited to: transportation, accommodation, meals, cash allowances, and any other prizes and/or benefits provided for invitee and spouse. Disclosure Remember, advisors are solely responsible for disclosing to clients any aspect of participation in Program qualification or attendance at programs. If you qualify as an Individual advisor, to attend the Program you will be required to submit an acceptable sample of the disclosure notification you use with clients. Continuing education credits If you participate in business sessions you may be eligible for continuing education credits.

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16 1 Persistency index measures the probability that $1 of premium income will stay inforce for at least 24 months. Included in the calculation are all individual life and health coverages issued during the preceding 24 months and any terminations occurring in the past 12 months. Coverages use annualized premium as the basis. Investment riders and excess premiums are excluded, as well as involuntary claims such as death claims and critical illness claims, term conversions, maturities and expiries, premium waiver, rescinded and not taken policies. The formula is: persistency index (%) = (Issues Terminations)/Issues. 2 Net First Year Commission as defined by the current Empire Life Producer Agreement as of January 1, As defined by the Empire Life Commission Schedule in place when the business was booked. In the Commission Schedule as of January 1, 2016, personal business is defined as: Any policy where the insured, life insured, beneficiary, payor or owner is a life insurance agent or the spouse or dependent child of an agent. In the case of incorporated agencies, personal business is defined as any policy where the insured, life insured, beneficiary, payor or owner is an officer, board member, significant shareholder, or a spouse or dependent child thereof of the agency or an associated company. Registered trademark of The Empire Life Insurance Company. Policies are issued by The Empire Life Insurance Company. Insurance & Investments Simple. Fast. Easy. info@empire.ca MKTG-1258-EN-05/16