P/N Version 1.6 User Guide. Document Date: September 16, 2007 Print Date: March 31, 2008

Transcription

1 P/N Version 1.6 User Guide Document Date: September 16, 2007 Print Date: March 31, 2008 Copyright 2006 Blue Frog Solutions, Inc. All Rights Reserved. No portion of this document may be reproduced without the express written permission of Blue Frog Solutions, Inc.

2 Table of Contents 1. INTRODUCTION ABOUT THIS DOCUMENT INTENDED AUDIENCE OVERVIEW About AFFIRM for Annuities About the release of AFFIRM TERMINOLOGY IN THIS GUIDE Conventions Used in This Guide THE USER INTERFACE SYSTEM REQUIREMENTS NAVIGATION General Browser Back and Forward Buttons SESSION TIMEOUT ONLINE HELP SYSTEM REQUIRED FIELDS BANNER ERRORS AND WARNINGS DATA ENTRY ON AFFIRM GHOSTED FIELDS ANNUITY ORDER ENTRY LOGIN SEED DATA ORDER ENTRY DASHBOARD ENTERING AND EDITING ANNUITY ORDERS Financial Advisor Product Tab Funding Tab Participants Tab Participant Details Tab Features Tab Feature Details Tab Sub Accounts Tab Suitability Tab Fulfillment Tab Notes & History Tab Summary Tab SUBMIT TAB SUB-PAY CONTRACT INFO TAB FUNDING TAB FEATURES TAB FEATURE DETAILS TAB SUB-ACCOUNTS TAB SUITABILITY TAB NOTES TAB SUMMARY TAB SUBMIT TAB

3 1. Introduction 1.1. About This Document This User guide details the functionality and use of the AFFIRM for Annuities Compliance and Order Management System. It focuses on the workflow involved in the order entry process and provides detailed information on the various fields and buttons found in the default configuration. It can be used as-is, or tailored for use within the Distributor s organization. AFFIRM for Annuities Compliance and Order Management System is highly configurable and therefore the User experience may vary. This document is provided as an overall reference so that Distributors may create training materials and guides that pertain to their organization s particular User interface (UI), workflow, and procedures Intended Audience This document is intended for the Distributor s project management, business analytics, training, administrative, help desk/support and technical staff Overview About AFFIRM for Annuities AFFIRM for Annuities was created in response to the ever-growing, everchanging regulatory landscape for annuity sales and the progress in automation and technology, affecting the life insurance and annuity industry. Violations and fines due to unsatisfactory agent oversight and unsuitable sales have reached hundreds of millions of dollars. Life insurance industry participants demand a measurable, predictable, and flexible means by which annuity orders can be measured to ensure the sale is suitable, auditable, complete, and In Good Order. Further, industry leaders have employed technology to enable straight through processing to reduce costs, increase revenue, improve customer servicing capabilities, improve access to information, to measure progress against goals and identify new opportunities, increase cross-selling to existing customers, increase quality, reduce training costs, and enable creative solutions and product to expand sales and entice new customers. AFFIRM for Annuities is Blue Frog Solutions solution to achieve these goals. AFFIRM for Annuities offers robust processing to enable sales of variable and fixed deferred annuities, including the many riders and features available in these products. 3

4 Because AFFIRM allows an unprecedented level of configuration and control, Distributors can now define annuity order workflow and business rules specific to their organizations and configure warnings and error messages that suit their needs. AFFIRM integrates with the Distributor s other systems and operates transparently within their enterprise. A convenient single sign-on provides secure access to only those functions necessary to a given User. AFFIRM may use data available from other Distributor systems to reduce data entry and improve quality. This data can pre-populate the order including forms required for signature, thus saving time and ensuring accurate data entry. Lastly, AFFIRM utilizes standards of the insurance industry to eliminate costly maintenance for proprietary solutions. AFFIRM electronically consumes industry-standard annuity product profiles, which eliminates the Distributor s maintenance costs. AFFIRM is compliant with the standards of the Association for Cooperative Operations Research and Development (ACORD), and supports ACORD or proprietary forms, configurable business rules, and file formats including ACORD messages and Depository Trust and Clearing Corporation (DTCC) About the release of AFFIRM 1.6 AFFIRM 1.6 includes enhancements to subpay processing, support for the Spring DTCC Enhancements, and user interface experience enhancements. For a full list of the changes available in 1.6, please review the release notes found on the Wikki Terminology in this Guide Table 1: Glossary Term Description AFFIRM Carrier The term AFFIRM in this document references AFFIRM for Annuities TM Compliance and Order Management System. When used in this document, the term Carrier references the statutory insurance manufacturer and/or the organization, which administers the applicable annuity product. 4

5 Term Description Configuration Indicates functionality within AFFIRM TM that may be controlled by the Distributor or the Carrier. Examples of Distributor configuration include the use of seed data for pre-fill of information about the new annuity, licensing and appointment processing and rules, and the allowable Funding methods and the functionality of the Funding page. Configuration enabled by the carrier includes the required and available forms that apply to the order, the available products, riders and funds, and the product business rules, which will be evaluated to ensure the entry is In Good Order. Distributor The term Distributor references the organization to which the User is associated which is responsible for configuration of the AFFIRM platform and oversight of the annuity process. Order Order Entry Participant PPfA Order is the term used in this Guide to indicate the new business application for a new annuity. Order Entry is the process by which a User enters new business information to purchase a new annuity. With regard to AFFIRM, Order Entry references the electronic gathering and verification of annuity information, rendering of forms for informational purposes and/or signatures, and electronic submission to the carrier. An individual or non-natural entity involved with an annuity contract. Product Profile for Annuities. The profile of the product, which contains characteristics of, business rules for and options available to the annuity, such as issue age and premium limits, available funds, riders, and service programs. The PPfA is created by the Carrier; it may be limited by the Distributor s configuration. For example, if the Carrier allows a product to be sold as a 403(b) funded by a Check, but the Distributor does not allow sales of either 403(b), or funding via Check, the product will not enable these options when an annuity Order is processed. 5

6 Term Description Seed Data The term seed data applies to either: a.) data which is transferred from the Distributor s system into AFFIRM to reduce data entry and enforce Distributor business rules, or Subpay UI User b) A process during which information is exchanged between a Distributor system and AFFIRM to evaluate business rules (such as Licensing and Appointment verification, to display only products that all Financial Advisors are eligible to sell, or a funds available verification). Subpay is the term used to indicate processing of additionally payments against an inforce annuity contract. It is sometimes referred to as Subsequent Payment. The AFFIRM User Interface. The UI references the screens the User uses to enter a new annuity. References to the User in this Guide indicate any User of the AFFIRM system, acknowledging that some Distributor workflows will involve the Financial Advisor entering the annuity order and some workflows may utilize staff in the back office to do so. 6

7 Conventions Used in This Guide The following formatting conventions are used in this guide to indicate usage within the Order Entry guide: Table 2: Document Conventions Convention Used Italic Indicates Data appearing in various fields is indicated using italics. Example: Enter

8 2. The User Interface This section details elements commonly found on AFFIRM for Annuities Order Entry screens, provides usage guidelines and includes a map of the default UI System Requirements The AFFIRM UI requires Microsoft s Internet Explorer (IE) browser, version 5.0 or above Navigation General The AFFIRM for Annuities Order Entry system includes a rich UI that provides functionality suitable for many organizations. While the interface is almost completely configurable, this guide highlights the interface elements included by default with the system. The following buttons or hyper-links appear frequently in the default implementation: 8

9 Table 3: UI Elements UI Element Location Function Found near the top of all screens Returns to the User s Home page Found near the top of all screens Found near the top and bottom of all screens Found near the top and bottom of all screens Logs the User out of the AFFIRM system Distributor, product and system business rules are not evoked to evaluate the data entry however Data Entry is saved at that point and user returns to the previous tab Cancels all new data input on that tab and returns to the order s prior state. Found near the top and bottom of all screens Saves the current contents of the annuity order Found near the top and bottom of all screens Advances to the next tab in the order entry process. Before the User is directed to the next tab, Distributor, product and system business rules are evoked to evaluate the data entry. Data Entry is saved at that point Browser Back and Forward Buttons Because AFFIRM for Annuities Order Entry dynamically generates screens based on data entry, the Back and Forward buttons supplied with many browsers cannot be relied upon to function as intended. This is a limitation of Microsoft s.net platform. Using the navigation buttons provided within the AFFIRM system, instead of those available from the browser is recommended Session Timeout AFFIRM for Annuity Order Entry is a Web-based application that creates a session when a User logs into the system. To ensure proper security and resource management, a Web user-session does timeout after a predefined period of 9

10 inactivity. The default timeout period is 20 minutes, but can be changed to meet a Distributor s requirements. Data is saved every time the User moves from one tab to another, and when the Save button is used. Sessions that have timed out will not retain any data entered since the last time information was saved Online Help System For example, rolling the mouse cursor over the Order Description edit box: Figure 1: Order Entry Edit Box provides this help text: Figure 2: Sample Help Text 2.5. Required Fields Required information is noted with red asterisk * Banner Between the navigation tabs and the User entry portion of the screen, general instructions and information is displayed, such as high-level information on the purpose of the page, as well as Order Description and selected product Errors and Warnings AFFIRM verifies administrative and product business rules interactively throughout the Order Entry process. Errors and warnings are displayed as applicable on AFFIRM on each page after User entry is complete, as well as on the Summary screen. The following is a sample: 10

11 Figure 3: Sample Error Messages The Errors and Warnings box can be removed from the screen by clicking the X on the upper right corner of the box. The box may be moved to a different location on the page by clicking on the heading bar of the box to drag and drop it Data Entry on AFFIRM AFFIRM uses consistent data entry formats: Text utilizes true case formats. For example, AFFIRM for Annuities. Note that the Carrier may convert the data provided by the order to all upper case once they process the information. The following characters should not be used: colon (:), tilde (~), asterisk (*). Dates are entered in the following format: MM-DD-CCYY. Note that either dashes or slashes can be used. For example, 12/14/2006. Currency may be entered with or without cents, and never includes commas. For example, $10, can be represented as or Percentages are entered in whole numbers without the percent sign. For example, 56% is represented as 56. If partial percentages are not allowed but are entered, such as 56.3% then a business rule will be invoked to indicate so to the User Ghosted fields Note that the current version of AFFIRM fields or questions may appear on the page but will not allow User input. AFFIRM TM utilized ghosting of fields making them display / read-only, on some pages when User entry is not applicable or not allowed. 11

12 3. Annuity Order Entry The Annuity Order Entry portion of the AFFIRM system provides detailed order data and tools to manage the ordering process. Agents, branch managers, and other Users can create orders, monitor their approval status, and, if necessary, edit orders for compliance. The following AFFIRM for Annuities pages are used for both User entry and review of previously entered new annuity orders. Orders that have not been submitted may be updated; orders that have reached the submitted status may not. This Guide will refer to User input and review of previously entered data. The general flow of order entry, along with dashboard display and functionality is as follows: Need to update table. For User Saves Order to be Completed Later Action should be Edit not View Table 4: Dashboard Display and Functionality Dashboard Display Rules User Action Display Dashboard Status Text Dashboard Actions Available View Edit Copy Cancel Delete User Initiates New Order In Progress x x x User Saves Order to be Completed Later. In Progress x x x User Completes Order and Forms are Generated Forms Rendered x x x User Submits Order for Approval Pending Approval x x x Order is Pending Approval. Pending Approval x x x Order is Rejected by Approver. Cancel/Rejected x x x Order is Sent to Agent for Rework by Approver. Cancel/Reworked x x x Agent Rework is Pending. Rework Pending x x x Order is Sent to Agent for Additional Information by Approver. Info Requested x x x Order is Cancelled by Agent, Broker/Dealer, or Approver. Cancelled x x x Order is sent to Carrier or DTCC Executed x x x After the Order is successfully transmitted to the Carrier, further information on the status of the Order, including the status of Carrier receipt of money from replacements and bank accounts as well as the policy issue status, is found (if applicable and available) outside of the AFFIRM for Annuities system Login Typically, Users involved with maintenance and development will log directly into the AFFIRM Annuity Order Entry system using an assigned Username and password. In a production environment, most other Users will use login to their firm s own Web or Windows application where corporate security protocols are deployed. 12

13 To access the AFFIRM system, the User is redirected to the AFFIRM Gateway, which will authenticate the User and direct them to the appropriate AFFIRM application according to their role, privileges and desired task. For example, an agent who wishes to see his or her saved orders is directed, to the Order Entry Dashboard screen, where all order data is summarized Seed Data Data that resides in a distributor s database can seed the order. Seed data can be utilized to improve quality, enable Distributor workflow and business requirements, and reduce data input requirements. Based on the Distributor configuration, AFFIRM gathers (or the Distributor sends) seed data from a distributor s system and automatically populates order as appropriate. Any information required on the order can be included, but more frequently includes information such as identifier(s), roles, and name of the financial advisor and distributor; account owner s name, address and identifiers, and other known assets, which may fund the new annuity or administer a subpay Order Entry Dashboard The Order Entry Dashboard organizes previously entered annuity orders. Information such as the type of order, the product, financial advisor, order name and order status are available. Based on the Distributor s configuration, the Dashboard may allow for the initiation of a new order. As with other areas of the AFFIRM system, the Order Entry Dashboard only displays orders appropriate to the user. For example, the Dashboard displays orders for one financial advisor, or all orders for all financial advisors for which a sales manager is responsible. Figure 4: Order Entry Dashboard Search Criteria 13

14 This screen provides the ability to narrow the list of orders based on specific criteria. o Show All This button returns a list of all of the new business and subpay orders available. o Search Orders This button returns a list of the orders that meet the search criteria selected. o Order ID System generated o Or Order Desc. Enter free-format text o Order Type Select New Business or Sub-pay o Client Name Usually populated by seed data o Status System generated o Create Range Order Created From/To Enter date range o Update Range Order Updated From/To Enter date range Search functionality supports the following wildcard parameters: 14

15 Figure 4a: Order Entry Dashboard The Order Entry Dashboard screen provides action links, and contains information about previously entered orders. Each User is identified by a Username. When establishing and maintaining the Username, the Distributor also defines the rights and privileges of that User. Note that the orders contained on this page include only the orders that exist in the database to which the User has privileges. If a User does not have rights to see an order, it will not appear on the Dashboard. Each Distributor may define the schedule in which orders will be purged, archived, or removed from the Dashboard. For example, submitted, approved orders over 14 days old may not be available for review on the Dashboard. o Edit Selecting Edit retrieves an existing order such that it can be modified. Edit is available if the User has the appropriate security privileges, and if the order has not been submitted previously. Orders cannot be modified once they are Submitted. o View View allows the User to review the information in an order, which was previously Submitted. o Copy This button adds a new order by copying the existing annuity order. All data except the order identifiers (Order ID, Order Description and DTCC 15

16 Confirmation Number) and that which is related to suitability approval is copied. The system automatically adds a note indicating that the order is a copy and references the original order. o Delete The Delete button, if available for an order, removes the order from the Order Entry Dashboard display. To maintain a proper audit trail, the order is not removed from the system. o Cancel The Cancel button is only available for Orders that are in a Pending Approval status. This button cancels an order and stops/retrieves the Order back from the Approval process. o Status Details Info on messages and approval status. Adjacent to the action links columns, there is descriptive information provided about a previously entered order. The Order Entry Dashboard screen may be sorted by any of the available columns by clicking on the column-heading link. Sortable columns are indicated by an underline which is viewable when you mouse over the column heading. The following information about a previously entered order is displayed on this screen: o Type Type details the order s type. Available types are: New This type denotes a new annuity order (i.e. new business). SubPay This type denotes an additional subsequent premium order. o Status Status lists the order s status. o Order Description This field contains the description of the annuity order that was entered by the User that added or modified the order. o Product The Product field displays the product name associated with the order. o Client Name This field contains the name of the Owner listed on the order. o Client Acct# - Client Acct# displays the distributor's client account number to which this order will be linked. o Created The Created field is the date this order was first entered into AFFIRM. o Updated The Updated field contains the date on which the order was entered or last modified. 16

17 o Order ID Order ID is a unique identifier, which identifies the order on AFFIRM. o NSCC App Contract # - This field is the identifier, which has been or will be included with the order when it is sent to the carrier via the DTCC. o Submitted - This field indicates the date the order was submitted for approval Entering and Editing Annuity Orders AFFIRM provides a configurable interface to input and manage annuity order data. In the default configuration, the Next button takes the User, step-by-step, through the order entry process. Tabs across the top of the screens identify all the pages, which must be completed to submit the order. The tabs change color if the User is currently on a page, and when a User has previously visited a page. Distributors, using seed data and configurable business rules, can control whether the tab is displayed or not, in many cases and/or if needed. As with most aspects of the AFFIRM system, the appearance and functionality of these tabs can be configured to suit the distributor s need. For instance, tabs can display as links, instead of buttons. Distributors can also define the actions associated with buttons, such as where the Home button directs the User, or whether buttons appear at all. If your organization has no need for a Logout button, for example, it is possible to remove it from the display. Finally, a distributor can distinctively brand the entire display using a style sheet to affect system colors and fonts as well as the logo, while still accessing the full power of the underlying AFFIRM system. 17

18 Financial Advisor Figure 5: Financial Advisor Tab The Financial Advisor tab records the sales staff associated with the order. See the AFFIRM Business Requirements Document for the configuration options available with this page. Note that the name of this page itself is configurable. The first section of the page is used to record the primary financial advisor involved with the sale. This information may be sent from the Distributor s systems in seed data to pre-populate the page. Distributor business rules may disable modification of the data. At least one Financial Advisor is required, and the total percentages of all must total 100%. The number of financial advisors may not exceed the number allowed by the carrier or DTCC s limit of 25; this business rule is evaluated once the carrier and product is selected. The Financial Advisor Tab contains the following buttons and fields for sales representative data: 18

19 o Keep - The Keep checkbox allows the User to indicate which financial advisors are associated with the order, particularly when financial advisor information is included in seed data to pre-fill the page. The agents from seed data will be displayed. If Distributor business rules allow this action, the User may select which financial advisors to associate with the order using the Keep checkbox. All financial advisors associated with the order must have the Keep checkbox checked. o Rep ID Rep ID indicates the financial advisor s identification number with the Distributor. o The format of this number is determined by each distributor individually. Depending on the Distributor configuration, if this number is found in the distributor s database, many of the subsequent fields will populate automatically. o Representative Name (First, Middle Initial, Last Name) These fields contain the sales representative s complete name. First and Last Name are required; Middle Initial is optional. o SSN # The representative s social security number appears in this field. This field requires all nine numeric digits without dashes. o Split Percent This field details the commission percentage applicable to each sales representative involved in an order. The split percent of all financial advisors must be equal to 100 percent. If a single representative handles the order, his or her split percentage must be 100. o Add Rows While AFFIRM provides fields for up to four agents to be applied to an annuity order, Add Rows can be used to add additional agents. The second section of the page is used to record the Order Taker, Sales Assistant or Back-Office Staff person involved with entering the order. This information may be sent from the Distributor s systems in seed data to pre-populate the page. If so, Distributor business rules may disable modification of the data. o Order Taker the Order Taker field will only be enabled if that specific User Role / User Action is passed from the Distributor in the New Order seed data token. The Order Taker fields are disabled otherwise. The last section of the Financial Advisor page is enabled if sales teams are included in seed data. The sales team is a grouping of individual financial advisors. If a sales team is used both a Team Name and a Team ID are required. 19

20 Product Tab Clicking the Product tab, or proceeding with the order process using next from the Financial Advisor page displays the following screen: Figure 4: Product Tab Data entered into the fields of the Product tab is used to establish a list of products that are available for sale, and is used for processing in later pages. For example, the qualified plan selected from the Annuity Plan Type drop-down list is used to identify annuity products that allow the selected plan type, and, if the new annuity is a replacement and is qualified, is subsequently used on the Funding Tab to determine if a replacement is a direct or indirect rollover. The Product page involves three steps: 1.) Complete the required and, if desired fields. 2.) Create a Product List by clicking Search Products 3.) Select a product using the radio buttons, then use the Next button to move to the next page. The data entered in the Product tab is used to provide a list of products that fit the selection criteria, and to identify the selected product. The list of products available is filtered based on required fields, including the Annuity Owner Type, Annuity Registration, Annuity Plan Type, Solicitation State plus optional fields if they are used, which include Product Type, Share Class and Carrier Family. Note: Some combinations of Annuity Owner Type, Annuity Registration, and Annuity Plan Type may not be supported by any product available to the financial advisor. The particular combinations available will depend on the Distributor configuration and the products available. For example, some Distributors do not allow Non-Qualified custodial accounts. In this case, the combination of Person 20

21 Custodial Non-Qualified will not return any available products on the Products page. Other criteria, such as licensing and appointment results or Distributor business rules may further restrict the list of annuity products available for purchase. When a product is selected, a much smaller subset of data applicable to that product is selected from the data available to that distributor. If the User returns to the Product page after the product have been selected, it will appear at the bottom of the Product screen. Note that the name of the Product is also available in the banner at the top of the subsequent pages. The following buttons and fields may be present on the Product tab, depending on distributor-defined rules: The fields that may appear on the Product tab are detailed below: o Order Description Enter a descriptive name for the order. This information is used to identify the order by the financial advisor and distributor only; this data is not sent to the insurance carrier. The Order Description is displayed on the Dashboard. o Client Account # Enter the client s account number. The Client Account Number is the account identifier at the Distributor to which the new annuity will be linked by the Carrier. This field may be required depending on the Distributor s business rules. o Annuity Owner Type Owner Type describes the type of ownership of the annuity. This field is required. Available values follow; this list may be limited based on rules defined by the distributor. o Charitable Organization o Corporation (general) o Person o Plan o Trust o Annuity Registration Designates the manner in which an account is controlled and may contain the following values: o Custodial This registration is used when an account is held for the benefit of another (typically the annuitant) in a custodial arrangement. Typically, the issuing insurance company does not register the beneficial owner of the annuity as the Owner of the account; the organization, which is reflected as the Owner, is a custodian. Therefore, when the Custodial value is used, the Owner Type must be Corporation. 21

22 Carriers products typically assume the Annuity Owner Type is Corporation (general). The Custodial Account Registration may trigger unique processing and validation errors on future pages based on Distributor configuration. For example, some Distributors require that the Owner and Beneficiary are the same entity. o Joint Joint is used when an account is held by two or more individuals with rights of survivorship. The Joint Account Registration requires two Owners (specifically, one Participant that has a Role = Owner, and a second with Role = Joint Owner). o Owner Owner specifies an account controlled by the client who is the Owner of the contract. If two Owners are allowed and identified, no rights of survivorship are assumed. o Self-Directed This registration is used when a client handles some or all investment decisions related to this annuity. The beneficial owner, typically the annuitant, may make decisions regarding the contract, even though the owner may be another individual, or a Plan or some other non-natural entity. o Trust Trust is used when an account is held in trust for another. If the Account Registration is Trust, then the Owner Type must be Trust. The inverse is not required. o UGMA/UTMA This registration is used for annuities, which qualify under the Uniform Gift to Minors Act, or Uniform Transfer to Minors Act enables adults (typically parents, grandparents and other family members) to transfer ownership of cash and other financial assets to children who are too young to own or manage such assets. This type of registration has specific requirements for data entry and structure: o The child is named as the Owner and the Annuitant. The child's own Social Security Number is used. o The child is also the Beneficiary. This indicates that the child's estate will benefit in the case of the child's death before they reach the age of majority. o The adult that is acting as the custodian is identified on AFFIRM with the role of "Custodian." o Annuity Plan Type Identifies the applicable provision of tax law or regulatory compliance to which the account is associated, or indicates that the annuity is 22

23 Non-Qualified. The list of available plan types may be limited based on Distributor availability. Plan Type is required. o Resident State Enter the state in which the primary Owner resides. Resident State is required. If enabled via Distributor configuration, this field may be used for Licensing and Appointment verification. The Owner s State on the Participant Detail screen will be defaulted from the Resident State field. o Solicitation State Enter the state from which the order was solicited. This field will be sent to the Carrier as the Issue State, and, if enabled via Distributor configuration, this field may be used for Licensing and Appointment verification. o County County is required if the Solicitation State is Florida. o Insurance Carrier Allows the User to select a carrier from those available. This field is optional. The names of the statutory insurance carrier (also known as writing company) will be displayed in the list of results of the product search. o Product Type Check either the Variable or Fixed annuity box to narrow down the product listing available from the selected carrier. Product Type is optional. Display of this field is controlled by Distributor configuration. o Share Class The Share Class further describes or defines the product with which the User wishes to search. The share classes are as follows: A Share, B Share, C Share, L Share, Bonus or No Share Class. The No Share Class indicates that the product cannot be associated with a share class. If the search should not be refined by Share Class, leave the Share Class field blank (do not select No Share Class ). Share Class is optional. o Search Products Displays a list of products available for this order, based on data entered in the Product Selection Criteria fields and on data entered in previous tabs. o Select The User will click on one radio button to select the product for the order after the search function locates and displays products appropriate for the order. Figure 5a: Product List for Selection 23

24 Funding Tab Figure 5: Funding Tab for a Non-Qualified Purchase AFFIRM for Annuities supports seven standard annuity funding methods: o Brokerage Account Cash, which is available in the client s Brokerage Account held at the Distributor is transferred through DTCC Money Settlement from the client s brokerage account to the insurance carrier. o Bank Account The premium will be funded by an Electronic Funds Transfer. The insurance carrier will request funds from the client s personal bank account. o Check The financial advisor will send the paper check to the insurance carrier after the electronic order is sent. o Qualified Policy Transfer/Rollover replacement of qualified annuities or life insurance policies. o Qualified Funds Transfer/Rollover Qualified funds held in non-policy sources such as CDs, mutual funds and Brokerage Accounts external to the Distributor. o 1035 Exchange Funds that qualify as a 1035 Exchange; a replacement of (generally) non-qualified annuities or life insurance. NOTE: the term 1035 Exchange on AFFIRM is intended to reference the Internal Revenue Code definition of a 1035 Exchange, as opposed to a colloquial term, which may be used to reference any replacement. 24

25 o Non-Qualified Funds Transfer Non-qualified funds from non-policy sources such as CDs, mutual funds, and Brokerage Accounts external to the Distributor. Funding may come from a single source or from a combination of those available. Distributors may determine which funding sources are available, of all that are offered by the Carrier, as well as those that are applicable to a particular order (using pre-defined seed data). When any button is pressed, the page will be re-painted to include the applicable fields required or allowed for entry of that funding method. The new fields will appear above the funding button that was selected. This Guide illustrates all Funding Methods available on AFFIRM. A Distributor s configuration or a Carrier s product may restrict the available means by which a new annuity can be funded. To add a payment, click on the name of the Funding Method. Note that some Distributor configurations may pre-fill all or some available Funding methods, and disable the User s ability to add new payments. If the User s ability to add new funds is disabled, the User is required to cancel the order and re-initiate a new order to add additional funds. If allowed by the Distributor s configuration, each available funding method may be (but does not have to be) used once, or multiple times. For example, one or several 1035 Exchanges may fund an annuity. To delete a payment, click the X in the upper right hand portion of the funding method box. Note that some Distributor configurations disable the User s ability to delete a funding method. This configuration would require the User to cancel the Annuity Order and re-initiate it through the Distributor s primary portal if the funding method, or payment amount (for example), varies from that which was originally entered. Once all payments have been added and verified, click on Next. AFFIRM will ensure that all business rules (including but not limited to required fields) are satisfied before the next page is displayed. Note that because the total initial premium that will be submitted is entered on this page, the minimum and maximum initial premium values for the product selected will be reviewed. If either one of these criteria are violated on the product selected, either the amount of the total initial premium entered will have to be adjusted or a new product selected. NOTE: Some Distributor s configuration requires the entry of original source of funds. Source of funds descriptions can be found at the end of this section of the User Guide. 25

26 Figure 6a: Original Source of Funds The Funding tab features the following buttons and fields: Add Brokerage Account Most distributors will require that a client have an account with the firm for the order to proceed. This button allows the User to fund the new annuity using money that is currently held in a Brokerage Account that is controlled by the Distributor. Based on the Distributor s business, this money could have been cash, replacements from other sources, etc. Clicking the Add Brokerage Account button displays this data entry box: Figure 6: Brokerage Account This box contains the following fields: o Client Account Number This field displays the client s Brokerage Account number. If the Client Account Number field was populated automatically from seed data, or if it was entered on the Product tab, it will be pre-filled. Distributor configuration will determine if the information may be modified. o Funds Available This field is read only and displays the total amount of funds available from the indicated Brokerage Account. If there is a dollar amount in this field, it was populated from seed data. o Premium Purchase Amount Premium Purchase Amount is required. This amount will be applied to the new annuity from the Brokerage Account funding method. 26

27 o Is this a Non-Qualified Contribution or a Qualified Fund Rollover? This question applies to Qualified Plans to indicate if the funds are a contribution (new cash) or rollover (money from a replaced policy, account or fund). o Qualified Plan This field explains the tax status of the money from the Brokerage Account that will fund the new annuity. The field is a drop down list box comprised of various Qualified Plan Types that represent the type of brokerage account being used to fund the annuity. The list is refined based on the Annuity Plan Type entered on the Product page. o Total Order Funding Reflects total funds from all original sources. Appears only if Original Source of Funds Configuration is activated. o Tax Year This field applies to Qualified Plans and is used to enter or display the tax year to which the funds from this Brokerage Account will be applied when this payment is applied to the annuity Add Bank Account This button allows the User to fund the new annuity from the client s bank account. The funds will be requested and obtained by the Carrier when this Funding Method is used. Clicking the Add Bank Account button displays this data entry box: Figure 7: Bank Account This box may contain the following fields: o Premium Purchase Amount - Premium Purchase Amount is required. This amount will be applied to the new annuity from the Bank Account funding method. o Payment Form Funds may transfer by electronic funds transfer (EFT). 27

28 o Routing Number Routing Number gathers the Bank Routing Number of the Bank Account. Note that the Routing Number is not verified for accuracy on AFFIRM, so care should be taken when entering this information. Routing number is required. o Account Number Input Bank Account Number. Account number is required. o Account Holder Name Input name(s) of the owner(s) of the bank account. Account Holder Name is required. o Bank Account Type This required field indicates if the Bank Account is a Checking Account or a Savings Account. Bank Account Type is required. o Financial Institution Name Input the name of the company that manages the bank account. Financial Institution Name is required. o Is this a Non-Qualified Contribution or a Qualified Fund Rollover? This question applies to Qualified Plans to indicate if the funds are a contribution or rollover. If it is not read only this field is required. o Tax Year This field applies to Qualified Plans and is used to enter or display the tax year to which the funds from the Bank Account apply when funding this annuity. If it is not read only this field is required. o Total Order Funding Reflects total funds from all original sources. Appears only if Original Source of Funds Configuration is activated 28

29 Add Check This button allows the User to indicate that the new annuity will be funded by a check from the client. Clicking the Add Check button displays this data entry box: Figure 8: Check This box contains the following fields: o Premium Purchase Amount Premium Purchase Amount is required. This amount will be applied to the new annuity from the Check funding method. o Check Number Enter the check number of the check that was written to fund the annuity account. Check Number is required. o Is this a Non-Qualified Contribution or a Qualified Fund Rollover? This question applies to Qualified Plans to indicate if the funds are a contribution or rollover. If it is not read only this field is required. o Tax Year This field applies to Qualified Plans and is used to display or enter the tax year to which the funds from the Check apply when funding the new annuity. If it is not read only this field is required. o Total Order Funding Reflects total funds from all original sources. Appears only if Original Source of Funds Configuration is activated Add Qualified Policy Transfer/Rollover This button allows the User to specify that a Transfer, using a qualified insurance policy or annuity, will fund the annuity contract. The replacement process to obtain the funds from the ceding carrier will be initiated and overseen by the Carrier of the new annuity when this Funding Method is used. 29

30 Clicking the Add Qualified Policy Transfer/Rollover button displays this data entry box: Figure 9: Qualified Policy Transfer/Rollover This box may contain the following fields. o Estimated Surrender Amount Estimated Surrender Amount is required. This amount will be applied to the new annuity from the surrendered Qualified Policy Transfer or Rollover funding method. o Liquidation Type Indicates if the policy being replaced is a Full Cash Surrender or a Partial Cash Surrender. Liquidation Type is a required field. o Transfer After Date Input the date on or after which the Qualified Transfer should occur. This field is optional; if the transfer should take place immediately, leave this field blank. o Qualified Plan This field contains a list of qualified plans, such as IRA - Traditional. This field explains the tax status of the policy being replaced. This information is used to determine if the new annuity is a like for like replacement. Qualified Plan is a required field. o Surrendering Company Name Input the name of the company from which the policy will be transferred. Surrendering Company Name is a required field. o Surrendering Product Name Input the name of the product associated with the policy being replaced or transferred. This information is optional. o Product Type Select from the list of policy types that can be surrendered; Fixed Annuity, Indexed Annuity, Universal Life, Variable Annuity, Variable Universal Life, Variable Whole Life or Whole Life. Product Type is a required field. o Surrendering Policy Number Input the policy number assigned by the surrendering carrier to the policy being replaced or transferred. Surrendering Policy Number is a required field. o Estimated Policy Value Estimated total policy (cash) value of the policy, regardless of whether the policy will be fully/partially surrendered. Estimated Policy Value is a required field. 30

31 o Policy Status Select status of policy as either I have enclosed the contract or I certify that the contract has been lost or destroyed. This information is optional. o Effective Date Input the date on which the policy being fully/partially surrendered became effective. This information is optional Add Qualified Funds Transfer / Rollover This button allows the User to authorize funding for the new annuity from qualified sources such as CD s, mutual funds, and brokerage accounts that are not controlled by the Distributor. The transfer process to obtain the funds from the ceding financial institution will be initiated and overseen by the Carrier of the new annuity when this Funding Method is used. Note that a different button called Qualified Policy Transfer/Rollover is used to transfer qualified annuities and life insurance policies. Clicking the Add Qualified Funds Transfer/Rollover button displays this data entry box: Figure 10: Qualified Funds Transfer/Rollover All fields are required unless noted below: o Estimated Surrender Amount - Estimated Surrender Amount is required. This amount will be applied to the new annuity from the surrendered Qualified Funds Transfer or Rollover. o Liquidation Type Indicates if the funds being used are a Full Cash Surrender or a Partial Cash Surrender. Liquidation Type is a required field. o Transfer After Date Date on or after which the Qualified Transfer should occur. This field is optional; if the transfer should take place immediately, leave this field blank. o Investment Type Select from the list of investment types that can be used; Certificate of Deposit, Investment Account, or Mutual Funds. Investment Type is a required field. o Qualified Plan Select from the list of qualified plans, such as Traditional IRA. This field explains the tax status of the funds being used, which will fund the 31

32 new annuity. This information is used to determine if the new annuity is a like for like transfer. Qualified Plan is a required field. o Financial Institution Name The name of the company from which the funds will be transferred. Financial Institution Name is a required field. o Account Number The fund Account Number. Account number is a required field. o Account Holder Name Name of the owner(s) of the account. Account Holder Name is a required field Exchange This button allows the User to specify a replacement that meets the US Internal Revenue Code requirements as 1035 Exchanges, using a non-qualified insurance policy or annuity, to fund this annuity contract. The replacement administration to obtain the funds from the ceding carrier will be initiated and overseen by the Carrier of the new annuity when this Funding Method is used. Clicking the Add 1035 Exchange button displays this data entry box: Figure 11: 1035 Exchange ( Short Form Distributor Configuration) This box may contain the following fields. The fields are required unless otherwise noted. Under Surrendering Policy Information: o Estimated Surrender Amount Estimated Surrender Amount is required. This amount will be applied to the new annuity from the surrendered 1035 Exchange. o Liquidation Type Select either Full Cash Surrender or a Partial Cash Surrender. Liquidation Type is a required field. o Transfer After Date Input the date on or after which the transfer of assets should occur. This field is optional; if the transfer should take place immediately, leave this field blank. o Surrendering Company Name Input the name of the company from which the asset will be transferred. Surrendering Company Name is a required field. 32

33 o Surrendering Product Name Input the name of the product associated with the policy being replaced or transferred. This information is optional. o Product Type Select from the list of policy types that can be surrendered; Fixed Annuity, Indexed Annuity, Universal Life, Variable Annuity, Variable Universal Life, Variable Whole Life or Whole Life. Product Type is a required field. o Surrendering Policy Number Input the policy number assigned by the surrendering carrier to the policy being replaced or transferred. Surrendering Policy Number is a required field. o Estimated Policy Value Input the estimated total policy (cash) value of the policy, regardless of whether the policy will be fully/partially surrendered. Estimated Policy Value is a required field. o Policy Status Select from the two options: I have enclosed the contract or I certify that the contract has been lost or destroyed. This information is optional. o Effective Date Input the date on which the policy being surrendered became effective. This information is optional. The Long Form may be displayed if specified in the Distributor configuration. The purpose of the Long Form is to collect comparison information utilized to determine suitability of the 1035 Exchange. 33

34 Figure 12: 1035 Exchange ( Distributor Configuration ) Add Non Qualified Funds Transfer This button allows the User to authorize funding for the new annuity from Non- Qualified sources such as CD s, mutual funds, and brokerage accounts that are not controlled by the Distributor. The transfer will be initiated and overseen by the Carrier of the new annuity when this Funding Method is used. Note that a different button called 1035 Exchange is used to transfer Non- Qualified annuities and life insurance policies. Add Non Qualified Funds Transfer button displays this data entry box: Figure 13: Non-Qualified Funds Transfer 34

35 o Estimated Surrender Amount - Estimated Surrender Amount is required. This amount will be applied to the new annuity from the Non Qualified Funds Transfer. o Liquidation Type Select funds being used as either a Full Cash Surrender or a Partial Cash Surrender. Liquidation Type is a required field. o Transfer After Date Input the date on or after which the Transfer should occur. This field is optional; if the transfer should take place immediately, leave this field blank. o Investment Type Select from the list of investment types that can be used; Certificate of Deposit, Investment Account, or Mutual Funds. Investment Type is a required field. o Financial Institution Name Input the name of the company from which the funds will be transferred. Financial Institution Name is a required field. o Account Number Input the fund Account Number. Account Number is a required field. o Account Holder Name Input the name of the owner(s) of the account. Account Holder Name is a required field. 35

36 Original Source Of Funds (OSOF) Original Source of Funds (OSOF) is a Distributor configurable option to require the Advisor to enter information regarding the original funds used to make this annuity purchase. For example, funds in a Brokerage Account may have been recently surrendered from a mutual fund. If this configuration is used by the Distributor, the six Original Source Of Funds buttons will appear for the following funding sources: Add Brokerage Account, Add Bank Account, Add Check. If the OSOF configuration is activated, the Premium Purchase Amount must be totally accounted for in the OSOF. An error message is generated until the total of the OSOF equals the Premium Purchase Amount entered for the Funding Method. Figure 15: Original Source of Funds Options The following list is the six different options from which funds could have originated: Equity, Bonds & Cash This section records money from (the funding method, such as Brokerage Account) being used to fund the annuity where the original source is from cash or the sale of equities and bonds. o Amount from this Source The dollar amount associated with this original source, as described by the Type field. Amount is required. o Type Input descriptive text regarding the source, such as Sale of 3 Year Bond. 36

37 Mutual Fund / UIT This page records money from (the funding method, such as Brokerage Account) being used to fund the annuity where the original source is from the sale of mutual funds and/or unit investment trusts. Figure 16: Mutual Fund/UIT o Amount from this Source Indicates the dollar amount associated with this original source, as described by the other information provided in this section. Amount is required. o Were you the original advisor on this Purchase Answer Yes or No. o Original Purchase Date Indicates the original purchase date of the mutual fund or UIT. o Product Sponsor Company underwriting the investment. o Product Name Indicates the name of the mutual fund or unit investment trust. o Value Prior to Liquidation Indicates the dollar amount of the mutual fund of unit investment trust before liquidation charges were assessed. o Liquidation Type Indicates if the asset was fully or partially liquidated. o Actual Sales Charge Levied Amount that was assessed during the liquidation of the asset. o Symbol Ticker symbol of the mutual fund or unit investment trust. o Please provide the reason for liquidating this asset in association with this annuity purchase Comment regarding why the mutual fund or unit investment trust was liquidated in order to purchase this annuity. 37

38 Alternate Investment This section records money from (the funding method, such as Brokerage Account) being used to fund the annuity where the original source is from alternative investments such as Real Estate Investment Trust (REIT). Figure 17: Alternate Investment o Amount from this Source Indicates the amount associated with the original source that pertains to and is described by the other information provided. Amount is required. o Were you the original advisor on this Purchase Answer Yes or No. o Original Purchase Date Indicates the original purchase date of the investment. o Product Sponsor Company underwriting the investment. o Product Name Indicates the name of the investment. o Value Prior to Liquidation Indicates the dollar amount of the investment before liquidation charges were assessed. o Liquidation Type Indicates if the asset was fully or partially liquidated. o Actual Sales Charge Levied Indicates the dollar amount that was assessed during the liquidation of the asset. o Please provide the reason for liquidating this asset in association with this annuity purchase Indicates an explanation regarding why the investment was liquidated in order to purchase this annuity. 38

39 Variable Annuity This page records money from (the funding method, such as Brokerage Account) being used to fund the new annuity where the original source is a variable annuity. Figure 18a: Variable Annuity 39

40 Figure 18b: Variable Annuity Funding Detail section o Amount from this Source Indicates the amount associated with this original source funding the new annuity that pertains to and is described by the other information provided. Amount is required. o Liquidation Type Indicates if the asset was fully or partially liquidated. o Insurance Company Indicates the name of the issuing insurance company associated with the annuity that was replaced. o Product Name Indicates the name of annuity product that was replaced. o Product Type Variable Annuity is pre-selected. o Policy Status Indicates whether the original contract was lost or destroyed, or returned to the original insurance company. o Value Prior to Liquidation Indicates the policy value before the policy was replaced. o Surrendering Policy Number Policy number of the policy being surrendered. o Effective Date Indicates the original effective date of the annuity policy that was replaced. 40

41 Surrendering Policy Detail o Death Benefit Prior to Liquidation Indicates the death benefit of the policy before it was liquidated. o CDSC Amount Levied Indicates the surrender charges that were levied on the policy. o Mortality & Expense Indicates the M&E policy/product charge of the policy. The amount is stated as a percentage (for example, 25bps is 0.25%). o Total Years with surrender charges Indicates the surrender charge duration of the policy. o Admin Fee Any applicable administrative fees. o Upfront Sales Charge Indicates the sales charge stated as a percentage that was paid when the policy was issued. o Avg Fund Expense Indicates the average fund expense charge assessed on the policy. The amount is stated as a percentage (for example, 25bps is 0.25%). Rider Cost (select all that apply) o Rider Type/Rider Sub type and % Types of riders that were active on the policy and the associated fee. To indicate a fee applies, check the checkbox to the left of the type of rider. The amount is stated as a percentage (for example, 25bps is 0.25%). Reason for the Exchange Questions section o Check all that Apply Reasons why the annuity was replaced. o Add/Replace a Living Benefit Indicates the one or several riders that were added that the policy did not have. o If the reason for the exchange is Reduce Market Risk and/or Step Up in Death Benefit, did you review and discuss with the client the option of moving his or her current variable annuity into the guaranteed rate alternative product offered by most companies? Yes or No. 41

42 o If No, please provide details as to why this discussion did not take place. Free format comments. o Were you the original advisor on this purchase? Yes or No. o Did the in-force contract originate from a 1035 Exchange? Yes or No. o What date will the in-force contract be free of surrender charges? Indicate the date. o Original investment plus additions less withdrawals? - Indicate the total investment the client has made in this asset. o Can the riders selected in the rider cost comparison be added to the existing contract? - Yes or No. o What is the primary source of this information Provide the primary source of information from the available selections. 42

43 Variable Life This page records money from (the funding method, such as Brokerage Account) being used to fund the new annuity where the original source is a variable life insurance policy. Figure 19: Variable Life o Amount from this Source Indicates the amount associated with the original source that pertains to and is described by the other information provided. Amount is required. o Source of Info - Indicates the primary source of information from the available selections. o Were you the original advisor on this purchase? Answer Yes or No. o Original Purchase Date Indicates the original effective date of the policy that was replaced. o Insurance Company Indicates the name of the issuing insurance company associated with the life insurance policy that was replaced. o Product Name Indicates the name of life insurance product that was replaced. o Value Prior to Liquidation The dollar amount of the life insurance policy before liquidation charges were assessed. o Liquidation Type Indicates if the asset was fully or partially liquidated. o CDSC Amount Levied - Indicates the surrender charges that were levied on the life insurance that was replaced. 43

44 o Surrender Schedule Indicates the policy surrender charge, stated as a percentage. o Upfront Sales Charge Indicates the sales charge stated as a percentage that was paid at issue of the life insurance policy that was replaced. o Other Fees Indicates any policy/product charge paid by the life insurance policy that was replaced. The amount is stated as a percentage (for example, 25bps is 0.25%). o Death Benefit Prior to Liquidation Indicates the total death benefit before the liquidation. o Actual Death Benefit Loss Indicates the decrease in death benefit caused by the liquidation. o Please provide the reason for liquidating this asset in association with this annuity purchase Comment regarding why the investment was liquidated in order to purchase this annuity Fixed Insurance This page records money from (the funding method, such as Brokerage Account) being used to fund the new annuity where the original source is a fixed life insurance or annuity policy. Figure 20: Fixed Insurance o Amount from this Source The amount associated with the original source that pertains to and is described by the other information provided. Amount is required. o Were you the original advisor on this purchase? Answer Yes or No. 44

45 o Original Purchase Date Indicates the original effective date of the policy that was replaced. o Insurance Company Indicates the name of the issuing insurance company associated with the life insurance policy that was replaced. o Product Name Indicates the name of life insurance product that was replaced. o Product Type Indicates the type of product that was replaced. o Value Prior to Liquidation Indicates the dollar amount of the life insurance policy before liquidation charges were assessed. o Liquidation Type Indicates if the asset was fully or partially liquidated. o CDSC Amount Levied - Indicates the surrender charges that were levied on the life insurance that was replaced. o Surrender Schedule Indicates the policy surrender charge, stated as a percentage. o Please provide the reason for liquidating this asset in association with this annuity purchase Comment regarding why the investment was liquidated in order to purchase this annuity. When the User completes entry and before they may move to the next screen, distributor business rules will be evaluated. Business rules include (but are not limited to) minimum and maximum amounts from specific sources, required fields, liquidation types and sales charges incurred. The User must correct errors before proceeding. The distributor firm determines the procedures for use of the OSOF feature. The figures above illustrate the expanded view of each option. Please refer to distributor documentation for details. 45

46 Participants Tab The names and roles of individuals and non-natural entities, such as trusts or corporations, involved in the new annuity are entered on the Participants tab. If it is allowed in the business rules configured in the PPfA, a single Participant may assume multiple roles in the annuity contract. Each role a Participant plays must be identified on the annuity such that product business rules can be verified, forms can be pre-filled by AFFIRM correctly and the appropriate information will be sent to the Carrier. If any information regarding the Participants involved with the Order was included in seed data, the screen will be pre-filled. Some information may prevent information from being modified based on Distributor configuration of AFFIRM. The screen is divided into one section for individuals and a second for organizations. The Owner is always listed first in the Individuals section if the Ownership Type was Person, and in the Entities if the Ownership Type was not Person. Note that all people and entities involved with the contract except agents and order takers are entered on this page. 46

47 Figure 14: Participants Note the following AFFIRM terminology regarding Roles: 47

48 Table 5: AFFIRM Annuity Contract Roles Role Comments Annuitant Designates the primary annuitant of the contract. The Annuitant is always a person. Every annuity must have one and only one Individual identified with the Annuitant role. If there is more than one annuitant, the second annuitant is called the Joint Annuitant. The same Participant may not be identified as both the Annuitant and Joint Annuitant. Beneficiary Designates a participant as a primary beneficiary to the contract. One or multiple Participants may be identified with this role, and may be either a person or an entity. AFFIRM 1.5 assumes every annuity must have one or more primary beneficiaries. The rules of the product control the maximum number of Beneficiaries that may be named. The same Participant may not be identified as both a Beneficiary and a Contingent Beneficiary. Contingent Beneficiary Designates a Participant as a contingent beneficiary. The contingent beneficiary may be either a person or entity. The rules of the product control whether contingent beneficiaries may be identified, and the maximum number of Contingent Beneficiaries that may be named on the new annuity. The same Participant may not be identified as both a Beneficiary and a Contingent Beneficiary. Custodian Joint Annuitant Designates an individual as a Custodian of the annuity. This role type is used on UGMA/UTMA accounts if configured in the PPfA, and identifies the adult or entity that will manage the account for the child until they reach the age of maturity. Designates the second annuitant of the contract. The Joint Annuitant is always a person. This role will be available in the Individual section of the page if the product rules allow this role. The same Participant may not be identified as both the Annuitant and Joint Annuitant. 48

49 Joint Owner Designates the second owner of the contract. This role will be available in the Role drop down list box if the product allows for a Joint Owner, considering the information entered on the Product page. For example, Joint Owners are commonly allowed only on Non-Qualified accounts owned by a person. The same Participant may not be identified as both the Owner and Joint Owner. Owner Payee Designates the primary owner of the contract. One individual or entity must be identified with the Owner role; the type of Participant that must be identified is controlled by the Owner Type field on the Order Info tab. If there is more than one owner, the second owner is called the Joint Owner. The same Participant may not be identified as both the Owner and Joint Owner. Designates an individual or entity as a Payee of a Systematic Withdrawal service feature. If the Payee is the Owner or Joint Owner, the individual or organization does not require the Payee Role. Power of Attorney Trustee Designates a Participant as a/the Power of Attorney of the annuity asset. Note that the Power of Attorney role does NOT indicate a Power of Attorney responsibility over a person. This role may be used if it is enabled by the Carrier s product. Designates a Participant as a/the Trustee of a Trust. This role may be used if it is enabled by the Carrier s product. The Participants tab features the following buttons and fields: o Delete This button deletes a Participant from the order. Individuals section: o Prefix Prefix to the person s name, such as Mr., Ms., or Mrs. This field is optional, but is recommended. o First Name First name of the person whose role will be defined. This field is required. 49

50 o MI Middle initial of the person whose role will be defined. This field is optional, but is recommended. o Last Name Surname of the person whose role will be defined. This field is required. o Suffix Suffix of the person s name, such as Jr. or Sr. This field is optional. o Primary Role Named person s primary role in the annuity contract. The Primary Role is required. Values available in this list are populated directly from the roles allowed by the product, and may include: Anuitant, Contingent Anuitant, Joint Anuitant Owner (if the Person value was entered on the Order Entry screen), Contingent Owner, Joint Owner Beneficiary, Contingent Beneficiary, Custodial Beneficiary Custodian, Trustee, Payee, Power of Attorney o Secondary Role Named person s secondary role in the annuity contract, if any. Values available here may be the same as, or a subset of, the roles available for primary roles. o Additional Role Named person s additional role in the annuity contract, if any. Values available here may be the same as, or a subset of, the roles available for primary roles. o Add Rows This button allows the User to add an additional Participant to the Order. Entities section: Fields available on the Non-Natural Entities section of the Participants tab may include: o Name Name of the trust, corporation, or other entity associated with the annuity contract. Note that, if Custodial was entered as the Account Registration on the Order Info tab, the name of the Distributor will be pre-filled in the first row and it will be ghosted to prevent it from being changed. o Organization Participant s type of organization. Values available in this list are populated directly from the organization types allowed by the product. Examples include: o Corporation o Estate o Government Agency 50

51 o Limited Liability o Nonprofit Organization o Partnership o Plan o Sole Proprietorship o Trust o Unknown o Primary Role Select the non-natural entity s primary role in the annuity contract. Note that, if Custodial was selected in the Account Registration field on the Order Info tab, the Owner role will be selected in the first row and it will be ghosted to prevent the value from being changed. Values available in this list are populated directly from the roles allowed by the product, and may include: o Owner, Contingent Owner o Beneficiary, Contingent Beneficiary o Trustee, Payee, Power of Attorney o Secondary Role Non-natural entity s secondary role in the annuity contract, if any. Note that, if Custodial was selected in the Account Registration field on the Order Info tab, the Beneficiary role will be selected in the second row. Values available here may be the same as, or a subset of, the roles available for primary roles. o Additional Role Named person s additional role in the annuity contract, if any. Values available here may be the same as, or a subset of, the roles available for primary roles Participant Details Tab The Participant Details tab contains additional information about each Participant, including their address, gender, contact information, and other required data about a Participant. If any information regarding the Participants involved with the Order was included in seed-data, the screen will be pre-filled. Some information may prevent information from being modified based on Distributor configuration of AFFIRM. In part, data is required or optional based on the role the Participant has on the contract. For example, the address may be required if a Participant is an Owner, but optional if the only role the Participant plays is Beneficiary. The sample screen that follows illustrates this point. 51

52 Like all screens, when the User completes entry of this screen, AFFIRM business rules will be evaluated to ensure that the product business rules are satisfied. Of particular note on the Participant Details page is validation of the role(s) the Participant plays on the annuity. If a Participant acts in multiple roles on the Order, and the product business rules do not allow a Participant to be identified with the specific roles that were selected, an Error will be presented, and the User will be forced to correct the information before moving forward. For example, some products require the Owner and Beneficiary to be the Owner (the Distributor) in Custodial-owned contracts; if the entity Owner is not also the Beneficiary, then a business rule will force correction. Likewise, some products do not allow the owner or annuitant to be the beneficiary; the User must correct the named Error condition if a Participant is identified with both roles on products with this restriction. The Participant Detail page identifies allowed relationship(s) that a Participant may have to another Participant. The Relationship to Owner or the Relationship to Annuitant will be displayed as appropriate based on the business rules of the product. These Relationship To lists contain the intersection of relationships that are allowed for all roles the Participant plays. For example, if the allowed relationships between the Owner and the Annuitant may be child, parent and sibling and the allowed relationships between Owner and Beneficiary may be child, grandparent, and parent and a Participant plays the roles of both Annuitant and Beneficiary, then the list will contain only the roles common to both: child and parent. If a Relationship To list box is empty, a named Participant may not play all identified roles on the Order and the information must be corrected before proceeding. When the User completes entry and before they may move to the next screen, product business rules will be evaluated. Business rules include (but are not limited to minimum and maximum issue ages for the Owner and/or Annuitant, allowed relationships, required fields. The User must correct errors before proceeding. For each Participant, there is always one section and there may be a second if the Carrier s product rules enable it. The first section gathers demographic information such as gender, address and citizenship. If the carrier s product enables it, authorizations may also be gathered. This information indicates the actions which the Owner has authorized other Participants such as an authorization to allow a Financial Advisor to perform electronic fund transfers. Authorizations may be available for any Role which is supported on AFFIRM. If more than one authorization is available on the Participant page and the role is not Writing Agent or Additional Writing Agent, AFFIRM business rules will allow only one authorization to be checked (true). 52

53 If the carrier s product includes an authorization statement for the Writing Agent or Additional Writing Agent, the Agent s name and Rep ID will appear at the bottom of the Participant Details page with the authorization questions. To authorize the Participant for the authorization, check the box to the left of the questions. If the Participant is not authorized, leave the checkbox blank. Figure 15: Participant Detail Tab For individual persons, the Participant Details tab features the following fields: o Relationship to Owner If the product rules require the collection of the relationship between the Owner and other Participants on the contract, then this field will display. If not, then this field will not display. If the named individual is the Owner of the contract, this field is pre-populated with Self and cannot be changed. Otherwise, any of several values may be selected, based on the product rules. This field is required if it is present on the screen. 53

54 o Relationship to Annuitant If the product rules require the collection of the relationship between the Annuitant and other Participants on the contract, then this field will display. If not, then this field will not display. If the named individual is the Annuitant of the contract, this field is pre-populated with Self and cannot be changed. Otherwise, any of several values may be selected, based on the product rules. This field is required if it is present on the screen. If the Participant is a Person, the following fields are available: o Prefix This field is pre-populated from the Participant screen. To correct this information, return to the Participant screen. o First Name This field is pre-populated from the Participant screen. To correct this information, return to the Participant screen. o MI This field is pre-populated from the Participant screen. To correct this information, return to the Participant screen. o Last Name This field is pre-populated from the Participant screen. To correct this information, return to the Participant screen. o Suffix This field is pre-populated from the Participant screen. To correct this information, return to the Participant screen. o Gender Select Male or Female. A blank row will be present in the drop down list box if the gender is optional. o Date of Birth Participant s date of birth in MM-DD-CCYY format. o SSN Social Security number of the Participant. o Beneficiary Percentage (%) - Enter a value between 1 and 100 to indicate the percentage to which the participant is a Beneficiary or Contingent Beneficiary in the annuity contract. This field is visible only for Participants with a Beneficiary or Contingent Beneficiary role. o Irrevocable? No or Yes to indicate whether the named individual s participation in the annuity contract is revocable for Beneficiary roles. This field is visible only for Participants with a Beneficiary or Contingent Beneficiary role, and if the carrier s product allows a beneficiary to be named as irrevocable. o Address Select or displays Business or Residence from the list. If the address is optional, chose a value from the list only if the address will be provided. Enter the appropriate address information for the Participant in Line 1 and (if applicable) Line 2. AFFIRM only gathers one address per Participant at this time. 54

55 Note that a Same As Owner button is available on Participants sections. If this button is used, it will copy the address from the Owner s section to this Participant. Type, Line 1, Line 2, City, State, Country and Postal Code will be copied. After this copy is performed, if the Owner s address is modified, the User must also change the (other) Participant s address if applicable. o City Participant s City. o State Participant s State. If the Participant is the Owner, the state will be prepopulated from the Residence State from the Order Info tab. The Owners Residence State on the Order Info and Participant Details pages cannot differ. o Country Country associated with the address. At present, AFFIRM only supports US and Canadian addresses. o Zip Code Participant s Zip Code. o Phone Type Type of phone number that will be provided. The list contains Business, Home or Other. At this time, AFFIRM only gathers one phone number for each Participant. If the phone number is optional, chose a value from the list only if the phone number will be provided. o Phone # & Ext Enter the contract participant s phone number and extension, if provided. o Enter the contract participant s address and select the type of address from the list. o Citizenship - Citizenship field is required for Owner, Joint Owner, Contingent Owner, Annuitant, Joint Annuitant and Contingent Annuitant if a person. This is a drop-down list of countries provided by the DTCC master list of country codes. The DTCC APP file will populate the 2-digit country code. Authorizations If the carrier s product enables a Participant to be authorized for an action, the Authorizations box will be enabled. To authorize the Participant for the activity, check the checkbox to the left of the authorization statement. For non-natural entities, the Participant Details tab includes the following fields that are unique to entities. The other fields available to organizations have the same meaning and functionality as the Individual characteristics, described above. 55

56 Figure 16: Participant Details for Non-Natural Entities o Name - this information is pre-filled from the Participant screen. o Organization this information is pre-filled from the Participant screen. o Tax ID Enter the contract participant s federal Tax ID number. o Trust Date Enter the date that the trust became, or will become, effective, if applicable. This field is used only if the Organization Type on the Participant screen was Trust Features Tab The Features tab presents a list of features that are available with the product. A feature is an annuity rider or a service program such as dollar cost averaging or systematic withdrawal program, or describes how the initial premium will be invested. The features that are available or required are displayed here and are determined by the Carrier PPfA and Distributor configuration. A feature is a categorization of annuity options; each feature has one or more feature options that may or must be selected. The Feature page is organized into three sections based on information in the Carrier s product profile: 56

57 Figure 17: Features Required Features o All mandatory features, such as Initial Premium, are listed in the first section. The Select box will be automatically checked and ghosted to prevent de-selection. o If there is a default feature option specified in the carrier s product profile, it will be automatically selected. If there is more than one feature option available, the User may modify the default using the drop down list box. o Because the feature is mandatory, there will not be a blank line available in the feature option drop-down list box. Optional Riders o Any optional annuity rider will be present in the Optional Riders section. To select an optional rider, click the Select checkbox to the left of the feature classification name to enable the feature option drop down list. o If there is a default feature option, it will be automatically selected when the Select checkbox is checked. If there is more than one feature option available, the User may change the selection. Optional Service Features o Any optional service feature will be present in the Optional Service Features section. To select an optional service feature, click the Select checkbox to the left of the feature classification name to enable the feature option drop down list. 57

58 o If there is a default feature option, it will be automatically selected when the Select checkbox is checked. If there is more than one feature option available, the User may change the selection. Before the User may leave the Features page, product business rules will be evaluated. The types of rules that are evaluated include rider-specific issue ages for the owner and/or annuitant. Some features or feature options require that other features or feature options be selected concurrently. If a feature or feature option is required but not selected, then an error with the relevant information will be presented and must be corrected before proceeding from the Features page. Likewise, some features or feature options may not be selected concurrently; if conflicting features or options were selected, an Error will be presented. Note that required features and feature options of the Initial Premium feature will be automatically selected. Any conflicting features and feature options of the Initial Premium feature will be automatically removed. Each feature contains two fields: o The left-hand column references the feature category. The feature category uses industry-standard terminology to describe the Tier 1 type of rider or service program, such as Initial Premium, Dollar Cost Averaging, Guaranteed Minimum Accumulation Benefit. o The right-hand column includes two pieces of information that is concatenated into each row in the drop-down list box. o The first piece of information references the feature sub-category. The sub-category uses industry-standard terminology to describe the Tier 2 type of rider or service program, such as Initial Premium Allocation, Special Dollar Cost Averaging, Premium Enhancement and Stepped Up GMLB. o The second piece of information is the Carrier s marketing name of the rider or service program. To select a rider or service program, 1. Place a checkmark in the corresponding box to the left of the Feature Name if it was not automatically checked. 2. Select a Feature Option using the list, if the feature option was not defaulted. Before moving to the Feature Detail tab, product, platform and distributor business rules will be validated and any warnings and errors will be presented to the User before moving to the next page. Examples of validate rules include rider issues 58

59 ages, and required and conflicting options. Errors must be resolved before proceeding to the Feature Detail page Feature Details Tab The Feature Details tab displays the feature options that were selected on the previous tab, and collects additional information if the Carrier s product rules require or allow it. If the Systematic Withdrawal feature is chosen, for example, the Feature Details tab will collect additional specifics on the service program, such as payment mode and bank account information. NOTE: Durations and allocation types will be ghosted if not applicable. Some feature detail fields will only be displayed when applicable. Figure 18: Feature Details Review the Feature Details tab carefully to ensure that the correct features, and options for them, have been added to the annuity contract. There are several fields that may be required or optional when completing information regarding service features. Generally, the usage of a field with a feature option is controlled by the carrier s product profile. If a field does not allow entry, it will be ghosted. Not every field listed below will apply to every feature 59

60 option, but the meaning and usage of each is the same across all types of service programs. The usage of the fields, the contents of drop down lists and validation of data entry is controlled by the carrier business rules from the PPfA. o Feature Name Displays the name of the feature option. This information cannot be modified. This field applies only to Initial Premium features. o Feature Selected - Displays the name of the feature category. This information cannot be modified. o Feature Opt Selected Displays the marketing name of the feature option. This information cannot be modified. o Duration Indicates the period for which the feature is applicable. o Payment Form Indicates the form the payment will take, such as a check or EFT. Typically used with Auto Payment/Bank Drafting and Systematic Withdrawal service features. o Total Number of Occurrences Indicates the duration of the service program the number of times the service program will execute. Note that the Frequency of Payment indicates how often it will execute. o Percentage Indicates the percentage applicable to the service program. For example, if the feature option is a Systematic Withdrawal of interest from a stated fund, Percentage indicates what percent of the interest will be taken of the total accumulated fund interest such as 100%. o Amount Per Occurrence Indicates the amount applicable to the service program each time the program executes. For example, Amount is used to indicate the fixed dollar amount for a Fixed Dollar Amount Systematic Withdrawal feature option. o Payment Amount Indicates the amount applicable to the service program each time it executes. For example, Amount is used to indicate the fixed dollar amount, which will be applied to the policy in an Auto Pay/Bank Draft feature option. o Frequency of Payment Indicates the frequency the service program will execute, such as Monthly or Quarterly. The carrier marketing materials are currently required to explicitly state if the frequency is on a calendar-basis or policy year-basis, but most are calendar-based. o Day of Month Indicates the day of the month upon which the service program will be scheduled with respect to the frequency selected. The 60

61 carrier marketing materials are currently required to explicitly understand if this is the date a check is to be drawn or received, or if the day of month is on a calendar-basis or policy year-basis, but most are calendar-based. o Start Date Indicates the specific date, in MM-DD-CCYY format, the service program will first execute. o Source Allocation Type Indicates the means by which allocations are stated for the source funds. Source funds may be used on the following types of service programs: Dollar Cost Averaging, Systematic Withdrawal. Supported Allocation Types include: Amount the money removed from a source fund is stated in dollars. The total dollar amount of all source funds entered in the Sub Accounts page must sum to the Payment Amount or Amount Per Occurrence entered on Feature Details. Percentage the money removed from a source fund is stated as a percentage (all allocation percentages must total 100%). Prorata across Selected Funds the money will be removed pro-rata according to fund positions from the funds selected. Prorata across All Funds the money will be removed across all funds; no funds are selected. o Destination Allocation Type Indicates the means by which allocations are stated for the destination/target funds. Destination funds may be used on the following types of service programs: Dollar Cost Averaging, Initial Premium, Asset Rebalancing, Asset Allocation, Standing Allocations, Automatic Payment. Supported Allocation Types are described in the Source Allocation Type description, above. Auto Pay/Bank Drafting service programs may enable additional fields: o Bank Name Indicates the name of the bank from which the payment will be drawn. o Bank Account Type Indicates the type of bank account from which the payment will be drawn, such as Checking or Savings. o Routing Number Indicates the routing number of the bank account from which the payment will be drawn. Note that the Routing Number is not verified for accuracy on AFFIRM aside from it being numeric, so care should be taken when entering this information. Routing number is required. o Account Number Indicates the account number of the bank account from which the payment will be drawn. For Systematic Withdrawal service programs may enable additional fields if enabled in the carrier product profile: 61

62 o Tax Withholding Instructions (Federal section and State section): o Withholding Type Indicates the withholding instructions, such as Do Not Withhold, Specified Amount or Specified Percentage. o Withheld Amount If the Withholding Type is Specified Amount, indicates the amount to withhold every time the Systematic Withdrawal processes. o Withheld Amount If the Withholding Type is Specified Percentage, indicates the percentage to withhold every time the Systematic Withdrawal processes. o Payee Selection Select the payee to which the disbursement should be directed. The drop down list box will contain the names of the Owner, Joint Owner, Annuitant and Joint Annuitant, and any Participant with a Role = Payee. AFFIRM currently allows one Payee per Systematic Withdrawal program. o Financial Institution o Company Name Indicates the name of the financial institution to which the disbursement will be sent. o Routing Number Indicates the routing number of the bank account to which the disbursement will be directed. Note that the Routing Number is not verified for accuracy on AFFIRM aside from it being numeric, so care should be taken when entering this information. Routing number is required. o Account Number Indicates the account number of the bank account to which the disbursement will be directed. o Account Type Indicates the type of bank account to which the disbursement will be sent, such as Checking or Savings. If a Complex Asset Allocation model was selected on the Feature page, additional information on funds and allocations is gathered on the Feature Detail page. Complex Asset Allocation models are comprised of one or several Categories (groupings of funds), and each Category is comprised of one or several funds. If the percentage allocation to each Category is not pre-determined by the Carrier, the percentage for each Category is input on the Feature Detail page Sub Accounts Tab The fixed and/or variable funds available are presented based on the Carrier s product profile and are displayed on the Sub Accounts tab. This screen allows the 62

63 User to see all of the funds available to any feature, select the fund allocations for the Initial Premium, the fund allocations that apply to service programs selected on the Features screen, and the funds available to any Complex Asset Allocation models and categories selected on the Feature Details page. Note that, if a selected feature option restricts the availability of some product funds, they will not be present on the Sub Accounts page. For example, if Funds A, B and C may not be used if the GMWB rider is elected, these funds will not be displayed on the Sub Accounts page. The Sub Accounts page is divided into a matrix: The available funds (Fund Manager or the Carrier s Name, and the Name of the fund) are listed on the left and the applicable service program is listed across the top. Some service programs gather source funds (i.e. funds from which money will come, such as the fund(s) from which a dollar cost averaging dollar amount will be removed), some gather, destination funds (i.e. target funds into which money will be moved, such as the funds into which the Initial Premium will be deposited) and some gather both. The Carrier s product profile determines whether source, destination, or both fund allocations are gathered. Note that, in order for a fund to be selected as a source fund, it must be designated as a destination fund on any other program. The Source Allocation Type and Destination Allocation Type on the Feature Details page, as well as the Carrier s product profile, controls the means by which information is gathered on the Sub Accounts page: o If one fund may be selected and one fund is available, the fund will be automatically selected by AFFIRM. o If one fund must be selected and several funds are available, a radio button will appear in the applicable column and will require the User to select one and only one fund. o If multiple funds may be selected and Pro rata Across Selected Funds was selected as the applicable Allocation Type on the Feature Detail page, checkboxes will be enabled in the appropriate column. o If more than one fund may be selected and Pro rata Across All funds was selected as the Allocation Type, there will be no entry necessary on the Sub Accounts page. o If more than one fund may be selected and Amounts was selected as the Allocation Type, an entry field will be enabled. User entry must be in dollars and must total the applicable Amount per Occurrence, or Payment Amount as noted on the Feature Detail page. 63

64 o If more than one fund may be selected and Percentage was selected as the Allocation Type, then whole percentages of the selected funds must total 100%. Special Dollar Cost Averaging (SDCA) is indicated using two features. The appropriate Initial Premium feature option must be selected along with one feature option of the Special Dollar Cost Averaging feature. (Note that some Carriers use different terms for this service program). 1. Indicate the specifics about the SDCA program, as required or allowed by the Carrier s product profile, on the Feature Detail page. Information that may apply includes the Mode (Frequency), the day of the month in which the transfer will occur, and the number of transfers. 2. On the Sub Accounts screen, indicate the percentage of the Initial Premium to be deposited into the SDCA Source Fund. This is entered in the Initial Premium Destination column. 3. On the Sub Accounts screen, indicate the funds into which the SDCA transfers should be deposited. When User entry is complete, Carrier product rules will be evaluated. If any Errors are present, they must be corrected before proceeding. Figure 19: Subaccounts To allocate monies to one or more of the sub accounts listed on this screen, enter the initial fund allocation percentage or dollar amount for each applicable fund until the total is 100% or the dollar amounts equal the initial premium. Any additional 64

65 sub account columns for optional features must also equal 100%, such as Systematic Withdrawal, DCA, etc Suitability Tab The Suitability tab displays all suitability questions that apply to the new annuity. The specific questions available in this tab are determined by the Distributor s configuration. These questions can include topics of interest to the Distributor to determine whether the new annuity is a suitable sale or to gather other information. The Suitability page can include queries such as a client s investment objectives, tax bracket, other insurance/annuities, and whether the client requires tax deferral. Figure 20: Suitability Several types of questions may be present on this page, including those with multiple choice selections, Yes/No answers, and text answers. The response to questions may or may not be defaulted based on the Distributor s configuration. Questions on the Suitability page that are required will have a red asterisk to the right of the response control. Required questions must be answered before advancing to the next page. When User entry is complete, Distributor rules will be evaluated. If any Errors are present, they must be corrected before proceeding. 65

66 Fulfillment Tab The Fulfillment tab collects information required by the insurance Carrier, such as whether this order is replacing other insurance coverage. The Carrier also provides the commission options allowed for the order, based on the sales agreement with the distributor and the specific product selected. See information under the Fulfillment page regarding when questions appear, when questions are required, etc. Figure 21: Fulfillment Questions In addition to order fulfillment questions, the commission option(s) that may be selected are also displayed on this tab. When User entry is complete, Carrier business rules will be evaluated. If any Errors are present, they must be corrected before proceeding Notes & History Tab Figure 22: Notes and History Tab 66

67 The Notes tab enables a notepad type function for notes, comments and information intended to document the sale and/or provide information for the suitability and administrative review. For example, if the Financial Advisor previously discussed the sale with a reviewer or supervisor, the discussion can be referenced on the Notes page. This tab can be enabled, or disabled using the distributor configuration flexibility of AFFIRM. The default configuration makes the information on the Notes page optional. The information on this page will not be transmitted to the Carrier. Once a note is added, it becomes part of the order record and for compliance purposes, cannot be deleted. The purpose and usage of this page will be determined independently by each Distributor, to determine procedures for their staff. When accessing the Notes page, existing Notes are listed on-page. To add a new Note, click on the Add button. The following fields are present on the Notes page: o Subject - Enter a descriptive summary of the Note. o Message Text - Enter the message text to record with the order. o Severity - Chose a severity value (informational only). Figure 23: Enter a Note Summary Tab The Summary tab contains all data collected during the order entry process and displays an Order Summary Report. The Order Summary Report also displays any errors or warnings associated with the order. The User must correct all Errors on the previous order entry tabs before the order can be submitted for approval. The following page illustrates and example of an Order that has passed all the Error checking in AFFIRM. 67

68 Figure 24: Order Summary Report 68

69 Notice that the Proceed to Submit button is ghosted if there are Errors present on the Order, and is enabled if there are no Errors or are warnings only. Any warning messages generated with the order are a permanent part of the record and will be passed to approvers with the order Submit Tab The Submit tab contains a list of all the necessary forms, as defined by the distributor, which must be completed so that the annuity order or subpay may be submitted for final review and approval. Figure 35: Submit Dialogue Figure 36: Submit tab The Submit tab features the following buttons and fields: 69

70 o View Retrieves the selected form and displays it in Adobe.PDF format. Only available after Render Forms. o Form Number The number of the form is displayed in this area. o Form Name The name of the form is displayed in this area. o Required This area indicates whether the form is required or not. Possible values are "Yes" and "No". o Form Origin This area indicates from where the form originated from either the Distributor or the Carrier. o Control Indicates sequencing of the forms. o Submit Submits the annuity order for approval, if no error or warning messages prevent it. When the user clicks the Submit Button, there will be one opportunity to confirm. Figure 37: Submit When the user proceeds, he or she will be presented with a confirmation of Submission: 70

71 Figure 38: Order Submitted Dialogue Box Order Submitted Thank you for your Order. 71

72 4. Sub-pay The sub-payment option allows input or display of data relevant to the deposit of additional funds into an existing annuity contract Contract Info Tab Figure 26: Sub-pay Contract Info Tab The following buttons and fields may be present on the Contract Info tab, depending on distributor-defined rules: Subsequent Payment Contract: o Order Description Descriptive name for the order. This information is used to identify the order by the financial advisor and distributor only; this data is not sent to the insurance carrier. The Order Description is displayed on the Dashboard. 72

73 o Client Account # Client s account number. The Client Account Number is the account identifier at the Distributor to which the new annuity will be linked by the Carrier. This field may be required depending on the Distributor s business rules. o Annuity Owner Type Owner Type describes the type of ownership of the annuity. This field is required. Available values follow; this list may be limited based on rules defined by the distributor. o Charitable Organization o Corporation (general) o Person o Plan o Trust o Annuity Registration Designates the manner in which an account is controlled and may contain the following values: o Custodial This registration is used when an account is held for the benefit of another (typically the annuitant) in a custodial arrangement. Typically, the beneficial owner of the annuity is not registered as the "Owner" of the account by the issuing insurance company; the organization, which is reflected as the Owner, is a custodian. Therefore, when the Custodial value is used, the Owner Type must be Corporation. Carriers products typically assume the Annuity Owner Type is Corporation (general). The Custodial Account Registration may trigger unique processing and validation errors on future pages based on Distributor configuration. For example, some Distributors require that the Owner and Beneficiary are the same entity. o Joint Joint is used when an account is held by two or more individuals with rights of survivorship. The Joint Account Registration requires two Owners (specifically, one Participant that has a Role = Owner, and a second with Role = Joint Owner). o Owner Owner specifies an account controlled by the client who is the Owner of the contract. If two Owners are allowed and identified, no rights of survivorship are assumed. o Self-Directed This registration is used when a client handles some or all investment decisions related to this annuity. The beneficial owner, typically the annuitant, may make decisions regarding the contract, even though the owner may be another individual, or a Plan or some other non-natural entity. 73

74 o Trust Trust is used when an account is held in trust for another. If the Account Registration is Trust, then the Owner Type must be Trust. The inverse is not required. o UGMA/UTMA This registration is used for annuities that qualify under the Uniform Gift to Minors Act or Uniform Transfer to Minors Act enables adults (typically parents, grandparents and other family members) to transfer ownership of cash and other financial assets to children who are too young to own or manage such assets. This type of registration has specific requirements for data entry and structure: o The child is named as the Owner and the Annuitant. The child's own Social Security Number is used. o The child is also the Beneficiary. This indicates that the child's estate will benefit in the case of the child's death before they reach the age of majority. o The adult that is acting as the custodian is identified on AFFIRM with the role of "Custodian." o Annuity Plan Type Identifies the applicable provision of tax law or regulatory compliance to which the account is associated, or indicates that the annuity is Non-Qualified. The list of available plan types may be limited based on Distributor availability. Plan Type is required. o State of Issue State of issue of the original contract. o Date of Issue Date of issue of the original contract. o Policy Number Original policy number. o Cusip Number The unique industry identifier for the funding component. o Product Type Product type. o Search Products Displays a list of products available for this order, based on data entered in the Product Selection Criteria fields and on data entered in previous tabs. o Select The User will click on one radio button to select the product for the order after the search function locates and displays products appropriate for the order. Annuitant: for verification purposes only: 74

75 o First Name Annuitant s first name. o Middle Name Annuitant s middle name. o Last Name Annuitant s last name. o SSN Annuitant s social security number Funding Tab The sub-pay funding tab identifies the funding source of the subsequent payment. The available funding sources are: o Brokerage Account Cash that is available in the client s Brokerage Account held at the Distributor is transferred through DTCC Money Settlement from the client s brokerage account to the insurance carrier. o Bank Account The premium will be funded by an Electronic Funds Transfer. The insurance carrier will request funds from the client s personal bank account. o Check The financial advisor will send the paper check to the insurance carrier after the electronic order is sent. o 1035 Exchange Funds that qualify as a 1035 Exchange; a replacement of (generally) non-qualified annuities or life insurance. NOTE: the term 1035 Exchange on AFFIRM is intended to reference the Internal Revenue Code definition of a 1035 Exchange, as opposed to a colloquial term that may be used to reference any replacement. o Non-Qualified Funds Transfer Non-qualified funds from non-policy sources such as CDs, mutual funds, and Brokerage Accounts external to the Distributor. o Qualified Policy Transfer/Rollover replacement of qualified annuities or life insurance policies. o Qualified Funds Transfer/Rollover Qualified funds held in non-policy sources such as CDs, mutual funds and Brokerage Accounts external to the Distributor. When any button is pressed, the page will be re-painted to include the applicable fields required or allowed for entry of that funding method. The new fields will appear above the funding button that was selected. 75

76 To add a payment, click on the name of the Funding Method. Note that some Distributor configurations may pre-fill all or some available Funding methods, and disable the User s ability to add new payments. Figure 27: Sub-pay Funding Tab NOTE: Distributor configuration may require entry of original source of funds. Source of funds descriptions can be found at the end of this section of the User Guide. Original source of funds screens are described in Section Original Source of Funds (OSOF). Figure 28: Original Source of Funds 4.3. Features Tab The Features tab presents a list of features that are available with the product. A feature is an annuity rider or a service program such as dollar cost averaging or systematic withdrawal program, or describes how the subsequent premium will be invested. The features that are available or required are displayed here are determined by the Carrier PPfA and Distributor configuration. 76

77 A feature is a categorization of annuity options; each feature has one or more feature options that may or must be selected. The Feature page is organized into three sections based on information in the Carrier s product profile: Figure 29: Sub-pay Features Tab Required Features o All mandatory features, such as Subsequent Premium, are listed in the first section. The Select box will be automatically checked and ghosted to prevent de-selection. o If there is a default feature option specified in the carrier s product profile, it will be automatically selected. If there is more than one feature option available, the User may modify the default using the drop down list box. o Because the feature is mandatory, there will not be a blank line available in the feature option drop-down list box. Optional Riders o Any optional annuity rider will be present in the Optional Riders section. To select an optional rider, click the Select checkbox to the left of the feature classification name to enable the feature option drop down list. o If there is a default feature option, it will be automatically selected when the Select checkbox is checked. If there is more than one feature option available, the User may change the selection. Optional Service Features o Any optional service feature will be present in the Optional Service Features section. To select an optional service feature, click the Select checkbox to the left of the feature classification name to enable the feature option drop down list. o If there is a default feature option, it will be automatically selected when the Select checkbox is checked. If there is more than one feature option available, the User may change the selection. 77

78 Before the User may leave the Features page, product business rules will be evaluated. Some features or feature options require that other features or feature options is selected concurrently. If a feature or feature option is required but not selected, then an error with the relevant information will be presented and must be corrected before proceeding from the Features page. Likewise, some features or feature options may not be selected concurrently; if conflicting features or options were selected, an Error will be presented. Each feature contains two fields: o The left-hand column references the feature category. The feature category uses industry-standard terminology to describe the Tier 1 type of rider or service program, such as Initial Premium, Dollar Cost Averaging, Guaranteed Minimum Accumulation Benefit. o The right-hand column includes two pieces of information that is concatenated into each row in the drop-down list box. o The first piece of information references the feature sub-category. The sub-category uses industry-standard terminology to describe the Tier 2 type of rider or service program, such as Initial Premium Allocation, Special Dollar Cost Averaging, Premium Enhancement and Stepped Up GMLB. o The second piece of information is the Carrier s marketing name of the rider or service program. To select a rider or service program, 3. Place a checkmark in the corresponding box to the left of the Feature Name if it was not automatically checked. 4. Select a Feature Option using the list, if the feature option was not defaulted. Before moving to the Feature Detail tab, product, platform and distributor business rules will be validated and any warnings and errors will be presented to the User before moving to the next page. Examples of validate rules include rider issues ages, and required and conflicting options. Errors must be resolved before proceeding to the Feature Detail page Feature Details Tab The Feature Details tab displays the feature options that were selected on the previous tab, and collects additional information if the Carrier s product rules require or allow it. If the Asset Rebalancing feature is chosen, for example, the Feature 78

79 Details tab will collect additional specifics on the service program, such as Frequency of Payment and Day of Month. NOTE: Durations and allocation types will be ghosted if not applicable. Some feature detail fields will only be displayed when applicable. Figure 30: Sub-pay Feature Details Tab There are several fields that may be required or optional when completing information regarding service features. Generally, the usage of a field with a feature option is controlled by the carrier s product profile. If a field does not allow entry, it will be ghosted Sub-Accounts Tab The fixed and/or variable funds available are presented based on the Carrier s product profile and are displayed on the Sub Accounts tab. This screen allows the User to see all of the funds available to any feature, select the fund allocations for the Subsequent Premium, the fund allocations that apply to service programs selected on the Features screen, and the funds available to any Complex Asset Allocation models and categories selected on the Feature Details page. The Sub Accounts page is divided into a matrix: The available funds (Fund Manager or the Carrier s Name, and the Name of the fund) are listed on the left and the applicable service program is listed across the top. Some service programs gather source funds (i.e. funds from which money will come, such as the fund(s) from which a dollar cost averaging dollar amount will be removed), some gather, destination funds (i.e. target funds into which money will be moved, such as the funds into which the Subsequent Premium will be deposited) and some gather both. 79

80 The Carrier s product profile determines whether source, destination, or both fund allocations are gathered. Note that, in order for a fund to be selected as a source fund, it must be designated as a destination fund on any other program. The Source Allocation Type and Destination Allocation Type on the Feature Details page, as well as the Carrier s product profile, controls the means by which information is gathered on the Sub Accounts page. Figure 31: Sub-pay Sub-Accounts Tab To allocate monies to one or more of the sub accounts listed on this screen, enter the subsequent fund allocation percentage or dollar amount for each applicable fund until the total is 100% or the dollar amounts equal the subsequent premium. Any additional sub account columns for optional features must also equal 100%, such as DCA, etc. When User entry is complete, Carrier product rules will be evaluated. If any Errors are present, they must be corrected before proceeding Suitability Tab The Suitability tab displays all suitability questions that apply to the new annuity. The specific questions available in this tab are determined by the Distributor s configuration. 80

81 These questions can include topics of interest to the Distributor to determine whether the new annuity is a suitable sale or to gather other information. The Suitability page can include queries such as a client s investment objectives, tax bracket, other insurance/annuities, and whether the client requires tax deferral. Figure 32: Sub-pay Suitability Tab Several types of questions may be present on this page, including those with multiple choice selections, Yes/No answers, and text answers. The response to questions may or may not be defaulted based on the Distributor s configuration. Questions on the Suitability page that are required will have a red asterisk to the right of the response control. Required questions must be answered before advancing to the next page Notes Tab The Notes tab enables a notepad type function for notes, comments and information intended to document the sale and/or provide information for the suitability and administrative review. For example, if the Financial Advisor previously discussed the sale with a reviewer or supervisor, the discussion can be referenced on the Notes page. This tab can be enabled, or disabled using the distributor configuration flexibility of AFFIRM. The default configuration makes the information on the Notes page optional. The information on this page will not be transmitted to the Carrier. Once a note is added, it becomes part of the order record and for compliance purposes, cannot be deleted. The purpose and usage of this page will be determined independently by each Distributor, to determine procedures for their staff. 81

82 When accessing the Notes page, existing Notes are listed on-page. To add a new Note, click on the Add button. The following fields are present on the Notes page: o Subject - Enter a descriptive summary of the Note. o Message Text - Enter the message text to record with the order. o Severity - Chose a severity value (informational only). Figure 33: Sub-pay Notes Tab 82

83 4.8. Summary Tab The Summary tab contains all data collected during the order entry process and displays an Order Summary Report. The Order Summary Report also displays any errors or warnings associated with the order. The User must correct all Errors on the previous order entry tabs before the order can be submitted for approval. The following page illustrates and example of a Sub-pay Order that has passed all Error checking. 83

84 Figure 34: Sub-pay Summary Tab 4.9. Submit Tab The Submit tab contains a list of all the necessary forms, as defined by the distributor, which must be completed so that the annuity order or subpay may be submitted for final review and approval. Please refer to section 3.5 for details. 84