Life Producer Hierarchies Workstream Meeting Minutes 1/30/19

Transcription

1 Life Producer Hierarchies Workstream Meeting Minutes 1/30/19 Meeting Objective: Discuss this week s agenda items. Workstream Attendees: Attendee/Company Attendee/Company Attendee/Company Attendee/Company X Karen Slayton, Merrill Advantage Insurance Crump: Diane Stahr Crump: Erin Kulp Lynch (Council Chair) Network: Andrew Clapp Crump: Larry Knapp Lincoln: Chris Smith X Lincoln: Tami Polley X Lincoln: Todd France X Lincoln: Jenna X Lincoln: John Thorpe X Lincoln: James X Lincoln: Mark Knox Dulchinos Ealing X Mass Mutual: Joe Procacini X MassMutual: Holly Tomaino X Merrill Lynch: Lisa DeCamp X Merrill Lynch: Karen Slayton X Nationwide: Henry Nerida X Nationwide: Matt Meyers X Nationwide: Brian Baseler X Nationwide: Brian Baseler Pershing: L. Mason Pershing: Melissa Lasso X Principal: Joe Nelson X Raymond James: Beth Maziad Stifel: Deidre Birk X Stifel: Nicole Hamilton Stifel: Andy Johnson X Stifel: Kathi Carter Stifel: Shelley Wallace X Symetra: Heather Lyons X Symetra: Wendell Tobiason Proformex: Chad Neifer DTCC Attendees: Jeanann Smith, DTCC Chair Barb Smith Suzanne Brazeal Jamie Taylor Minutes: Subject/Agenda Review Homework Feedback; Finalize Role Definitions & Impacted Entities Notes 1. Jeanann opened the meeting by reviewing the agenda. The ultimate goal of the workstream is to understand the life cycle of the policy and who may need access to certain data within the process. There may be some confusion with the name Producer Hierarchy, however, eventually we will look at hierarchies when looking at transactions and defining impacts. 2. Started reviewing Roles on line 19. a. Affiliated Associate is this adequately labeled RJ responded that it s a different role in their organization that allows them to aggregate for the Agent that has agents underneath them, but not in a supervisory or management capacity. i. Beth responded she may call it a recruiting agent because they can be producing themselves, but also recruiting other agents. It s not supervision of the business, just looking for more sales folks. This is a role at the BGA and is not necessarily an employee of the general agency (but could be). They do receive commission, but not always paid by the insurance carrier. They must be 100% licensed with the carrier to sell and participate in compensation. The carrier does Page 2

2 -3- need to know of the affiliate so they can send information. The affiliate may also work with the end customer, although often works through the agent. 1. Stifel s Insurance Agency entity (allows for subsidiary businesses by state) does not have the same role as described by Raymond James. Jeanann removed Stifel s Affiliated Associate comment in the spreadsheet. a. Insurance Agency s data aggregation is a challenge because the state entities (TIN or other code) do not roll up. Action Item: Kathi would like to research Insurance Agency entities from a backoffice perspective and report back to the group. b. Karen from Merrill felt this didn t apply to them. Merrill has an Insurance Agency and Broker Dealer. But does not have multiple Agency TINs by state. ii. Decision: Upon further review. The group agreed that Affiliated Associate is really the Producer. Removing Affiliated Associate in favor of Managing Affiliated Associate (see below) b. Inforce Management: This is defined as a group within the BGA that needs to have associated information. Raymond James does not have this role. Larry Knapp, Crump, submitted the definition and we will circle back with him during next week s call. c. In-force Servicing Unit added by MassMutual for post-issue policies. Lincoln questioned if this was different than the backoffice operation. For MassMutual, Holly, conveyed that back office is broad and they break out by sales cycle: pre-sale (internal sales desk), processing (underwriting, new bus), inforce service unit questions on in-force policies and perform different functions on those policies. Merrill Lynch, Karen, asked if we were meant to keep the definition generic for the marketplace and handle the specificity by internal access points. Action Item: Karen/Jeanann ask the access point/definition question during the next Council meeting on Monday. i. The potential for the relevant data may be different based on the category vs role so that we can drill down to the data points when needed. ii. Nationwide, Matt Meyers, asked if we should be looking at this by business process vs categories, such as New Business, Case Management, L&A, Withdrawals, etc. Jeanann confirmed our group needs to look at the impacts of the role(s) on the business process this is how the spreadsheet is currently

3 -4- formatted. Eventually, will create roles and access in marketplace to control APIs. Our task is to identify all the potential roles. d. Internal Product Specialist ML, Stifel, Raymond James definitions were all similar for product selection and new business/underwriting requirements. Stifel is okay with removing reference to case design. Jeanann will add to definition that the Advisor needs to be on the phone if product specialist is talking to the end client. Group agreed definition looks good. e. Internal Sales Desk for the Carrier vs Distributor. Lincoln s description had merged Nationwide, MassMutual and Raymond James to come up with a common definition. Symetra and MassMutual agreed that this includes illustrations. We don t need to include reference to wholesalers as it s too specific. However, we added they do not work with end clients. Group agreed definition looks good. f. Licensing Associate for distributor a few definitions were reviewed, and the group agreed Stifel s definition will be used. Merrill/Raymond James agreed. g. Licensing Associate for carrier three carriers provided definitions and were reviewed during the call. Group agreed to use Lincoln s definition and include contracting as well. h. Managing Affiliated Associate this is like affiliated, but at the management level. The affiliated associate is really the producer and we will use the affiliated associate definition to describe Managing Affiliated Associate. i. Money Manager for the purpose of fee-based policies, this is the RIA for Nationwide. Stifel feels it is whoever is managing the sub-accounts (American Funds, etc). The carriers receive a value for calculation but are not accounting for money manager during the policy cycle. i. Raymond James agreed that the RIA would potentially need access because of their role. ii. Group agreed to remove Money Manager role. j. Registered Investment Advisor added by the group. The group felt there are RIAs that do life insurance, but not feebased, yet. i. Does the group need to look at RIA as the same as the Advisor? Raymond James felt it would be different. They may act as an Agent or may be that the client also works with the RIA in addition to the Agent and may need access to policy information. The RIA may only have access to act on financial transactions (vs non-financial). There are carriers (on the annuity side) that Raymond James has seen provide the RIA as and interested party. Action Item: Carriers confirm that they need to recognize the RIA as a role on the policy.

4 -5- k. New Business & Underwriting hold for after next week s Council call. l. Paramed Associate for Carriers this is an outside party that is contracted to provide a service. Is this also a service the BGA would perform or do they access an outside policy as well? Stifel is unsure. Raymond James conveyed that the Paramed information resides on the application. It may not need to be in scope because the relationship ends once the check is performed. Jeanann asked if the Council might consider the Paramed vendor to be a source for the distributor for inbound to the marketplace. They are part of the underwriting process but the information does not belong in the marketplace as it is protected information. Group agreed to remove this role. m. Point of Sales associate for distributor Raymond James felt this is different than the product specialist because they share in the compensation. ML just has external and internal sales specialists. Group agreed to the definition provided by Raymond James. n. POS associate for GA is the same as for the distributor. o. Product Development MM provided description and the other carriers agreed. Jeanann asked if there was a need for the PD team to access the marketplace. MM felt there could be a need to display generic data to spot trends in the market and the evolution of products from an in-force perspective. The carrier provides the data that is rolled up to product line level for reporting/trends. The data would be publicly available, but easier to access. p. Registered Assistant for Distributor Stifel provided the description. This is different that the limited sales associate for Stifel. The limited does not need to have the Series 7. Once they achieve their Series 7 then they move to the Registered Assistant status. The registered assistant would not necessarily receive a direct compensation but may participate in an override. Group agreed with the definition provided by Stifel. Added Sales to the field name and changed Series 7 to required FINRA or insurance license. q. Sales Area for carrier reviewed definitions provided by MM, Lincoln, and Nationwide. For MM, this is the actual sales area that negotiates and sets compensation with the distributor and manages sales at the carrier level. Symetra has a similar role referred to as their Sales Operations team. Nationwide it s a function in Key Account managers. The nature of the relationship dictates who the carrier works with but primarily the product managers at the home/back office of the distributor. Group agreed to the definition provided. r. Sales Assistant reviewed definitions provided by Raymond James, Merrill Lynch and Stifel. This is non-registered, unlicensed (vs the Registered Assistant). Action Item: Kathi is

5 double-checking but feels they may have an insurance license but would not be FINRA. Changed the wording to say that the license isn t required for this role. s. Servicing Agent for carrier definitions submitted by both entity types and were very similar. However, there is a distinction between Agent and Agent(s). i. Merrill asked that we adjust the definition to include pool and team members (vs just one agent). Lincoln only allows one servicing agent on Life business but unsure if they are unique. MassMutual treats it the same as Lincoln. Merrill is making the distinction because the carrier only allows one, but the distributor has team members that they can map to in their back office. The group agreed with that distinction. ii. For the marketplace, may need to open this up so that they can recognize the multiple agents on the distributor side. The carrier would not be able to recognize or provide teaming agents. Suggest defining the Servicing Agent as a Carrier role and create a new role as Team Member Agent for the distributor role. 1. Added new role: Team Member Associate. Adjusted the definition to include pool or team of agents. 2. Modified Servicing Agent description to be agent only. Review Functions (Steps) in the Life Cycle of a Life Policy Next Call: Homework & Action Items Not discussed. 1. Work on action items and prep for Council meeting on Monday. 2. Workstream members to review the definitions as final and return to Jeanann as agreed. 3. Start reviewing the functions or components in the spreadsheet. 1/23 Action Items: # Action Item Assigned To Due Date Status 1 Action Item: Kathi from Stifel will research internally and confirm whether this is a role they use. Merrill Lynch does not use this role. Kathi Carter 1/29/19 1/30 discussed during call 2 Action Item: Jeanann to follow up with Beth to see if Affiliated Associate is actually a more generic role that can be labeled less specifically. Jeanann 1/29/19 1/30 discussed during call -6-

6 3 Action Item: Stifel needs to confirm their scope with how they are using BGA Operations (both pre-sale and post-issue). 4 Action Item: Jeanann will ask Crump for clarity on what is meant by Case Manager role at the account level. 5 Action Item: Matt to send Jeanann a description of the Clearinghouse/BD Role in relation to BGAs and Qualified business. 6 Action Item: Kathi is checking with Andy to see if the in-force management is at the BGA or BD level for them. 7 Action Item: ML & Raymond James define from their perspective the role interactions between writing, service, and commissionable agent and share with Stifel. 8 Action Item: Jeanann: Add Lines of Authority requirements to future agenda. 9 Homework for Next week: 1. Review the definition changes and agree to them, let us know if any questions. 2. Line 19 and forward, please add, modify your definitions so we can review next week. Add new roles not yet captured, if any. 3. Verify the impacted entities. 4. Look at lifecycle silos and be prepared to discuss as a group. Kathi Carter 1/29/19 1/30 discussed during call Jeanann 1/23/19 Matt Meyers 1/29/19 Done Kathi Carter 1/29/19 Carol & Beth 1/30/19 Jeanann 1/23/19 All 1/30/19 Done 1/30 Action Items: # Action Item Assigned To Due Date 1 Action Item: Kathi would like to research Insurance Agency entities from a back-office perspective and report back to the group. Kathi Carter 2/5/ Action Item: Karen/Jeanann ask the access point/definition question during the next Council meeting on Monday. 3 Action Item: Carriers confirm that they need to recognize the RIA as a role on the policy. 4 Action Item: Kathi is double-checking but feels they may have an insurance license but would not be FINRA. Karen Slayton & Jeanann 2/5/2019 Carriers 2/5/2019 Kathi Carter 2/5/

7 5 Action Item: Homework for next week: 1. Review the definition changes and agree to them, let us know if you have any questions. 2. Line XX and forward, please add, modify your definitions so we can review next week. Add any new roles not yet captured, if any. 3. Verify the impacted entities. 4. Look at the lifecycle silos (components) and be prepared to discuss as a group. All 2/5/