Life Producer Hierarchies Workstream Meeting Minutes 02/06/19 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 Lincoln: Tami Polley X Lincoln: Todd France X Lincoln: Jenna X Lincoln: John Thorpe X Lincoln: James X Lincoln: Mark Knox Dulchinos Ealing Mass Mutual: Joe Procacini X MassMutual: Holly Tomaino X Merrill Lynch: Lisa DeCamp X Merrill Lynch: Karen Slayton X Nationwide: Henry Nerida Nationwide: Matt Meyers X Nationwide: Brian Baseler X Morgan Stanley: Kevin Marrero Pershing: L. Mason Pershing: Melissa Lasso X Principal: Joe Nelson X Raymond James: Beth Maziad Stifel: Deidre Birk X Stifel: Nicole Hamilton X Stifel: Andy Johnson Stifel: Kathi Carter Stifel: Shelley Wallace X Symetra: Heather Lyons Symetra: Wendell Tobiason Proformex: Chad Neifer DTCC Attendees: Jeanann Smith, DTCC Chair Barb Smith Suzanne Brazeal Jamie Taylor Minutes: Subject/Agenda Producer Role definitions and internal access points Notes 1. Jeanann opened the meeting by reviewing the conversation we started last week about the roles within the distributor back office and who should manage the access points the Firm or DTCC. We sent a request via email and all responded that access roles should be controlled at the Firm level rather than in the Marketplace. Karen agreed with this approach. 2. Continued with the roles definition review: 3. Soliciting FA/Agent three distributors had different definitions and questioned whether the Soliciting Agent is different than a Writing Agent. The Soliciting Agent term is used by ML Karen felt the soliciting and writing are the same. If the writing agent is no longer on the case, then the commission is paid to who is on their books of record, which may not be the same person who solicited the policy. If not the servicing agent, then they do not need access to the policy data. However, ML felt the Servicing agent is a different role in their organization. a. ML pays the person who is on the brokerage account for the policy. Servicing agents can be teams. Access to the information needs to be controlled by ML as the agent might not be the agent of record at the Carrier. Beth from Raymond James also handles this the same way. Page 2
i. If the Carrier does not have the agent listed on the policy, they would reject allowing the agent access to that policy. Nationwide and MassMutual agreed. ii. Henry, Nationwide, conveyed that the data feeds would contain the servicing agent vs writing agent. If original BD is no longer on the policy, they will not share the original BD information. iii. Decision: Remove Soliciting Agent in favor of Writing Agent. Symetra agreed. b. Writing Agent changed definition to state that this is the agent that sold the business and may or may not be the servicing agent receiving commissions on the policy. c. Clearinghouse Broker/Dealer reviewed Nationwide s definition. Beth looked at this a bit differently because at times Raymond James acts as the Clearing BD. There are two different types of Broker Dealers. Decision: Change Clearinghouse to Wholesale in order to differentiate between the two. Decision: Added Nationwide s definition to Wholesaler BD. d. Add Clearing Broker Dealer? RayJay would want to receive data on customers they are supporting through their internal clearing firm. This is different than wholesale because the BGA cannot receive commission directly. RayJay s situation is that the firm is a BD and has a FINRA number. i. Karen feels the individual entity needs to control access. Beth agreed the control is at the BD so therefore this role is not needed in the marketplace. Decision: Do not add Clearing BD e. Commissionable Agent: Merrill and RayJay provided definitions that are like soliciting and servicing agents. Karen felt that the RayJay definition provides better context. i. Beth mentioned that there needs to be consistently across carriers with respect to who wrote the policy and who is the servicing and is the commissionable agent. Stifel, Andy, feels this commissionable agent is not applicable to them. 1. MassMutual is working on adding this commissionable agent role today they are breaking out writing agent and commission agent to report correctly to ML. 2. Nationwide keeps track of writing agent for captives because there may be some kind of compensation so long as the policy is in force. They have not received requests to transmit the data. -3-
3. Symetra is similar in that they have the data available but have not sent it outbound. They can send it, if needed. 4. Beth suggested that even if the carrier can t convey who the agent is, they will have the role available in the file, which would help RayJay determine to expect another agent. f. Track RIA which is the entity registered advisor. g. Track IAR which is the individual registered advisor. The roles were submitted last year s cycle. Action Item: Jeanann: will bring over the RIA and IAR definitions from last year s cycle for inclusion in the roles spreadsheet. h. Homework: Review the 5 revised definitions and approve. Reviewed Roles in relation to Distributor, Carrier or General Agency -4-1. Decision: Remove Inforce Servicing Unit 2. Distributor: Branch Manager. Action Item: GA: Confirm if GA has a Branch Manager Role 3. Commission Associate all three back offices use commission associate. Decision: this role handles both associate and manager. 4. Commission Manager carrier and distributor. Holly and Beth felt the access to data is the same as the associate. Decision: Removed Commission Manager role. 5. Compliance Associate for distributor and carrier. 6. External Wholesaler for carrier and GA. a. Beth felt that we should add Distributor even if the distributors don t have this today. It s a different entity and RayJay had this role in the past in favor of point of sale specialist. Stifel does not have this role. RayJay doesn t have this role today. Decision: Add this for distributor 7. Internal Product Specialist for distributor add BGA 8. Internal Sales Desk for carrier 9. Licensing Associate for distributor, carrier, and BGA 10. Managing Affiliated Associate for distributor is the recruiting agent updated definition to reflect that. 11. Removed Money Manager. 12. Removed New Business & Underwriting dept in favor of a generic role. 13. Point of Sale Specialist for BGA and Distributor 14. Registered Sales Assistant for distributor 15. Sales Area for carrier generic role this should be sales support associate made the change 16. Servicing Agent for Carrier would be for distributor as well, but the distributor doesn t communicate it to the carrier. Distributor only provides soliciting agent and manages the servicing agent internally. Added carrier-assigned current agent to the definition. James from Lincoln, mentioned that during a merger or acquisition, when the acquiring firm does not want the agent, they
would orphan the agent, and Lincoln would reassign to someone internally. This only applies when there is no BD associated with the policy. 17. Writing Agent for distributor does not change over time. 18. Wholesale BD for the GA only 19. Commissionable Agent for distributor 20. RIA/IAR for distributor Functional Labels Reviewed and agree on the functional labels and Jeanann will pull definitions these will contain specific data points based on the step of the process and/or business process. a. Licensing & Appointment (pre-sale) agreed b. Identify Insurance Need (pre-sale) - agreed c. Illustration (pre-sale) Karen mentioned that the pre-sales is typically internally and need to look at if this is an opportunity for the marketplace to help them with running the process vs access to existing data needed to support the sales/post-sales process. d. Application Submission e. Choose an Offer Crump offered this function the offer is extended and the agent/customer is making the selection. This may be an in-progress type function vs pre or post sale. The Group needs to walk through the data points to determine if this step is needed f. Policy Delivery keep this for now. g. Commission h. In-force Policy includes financial/non-financial. i. The group agreed that these functions cover each step of the pre-post sales transactions. j. Policy status is this a separate function or within each component. Perhaps change Choose an Offer to Policy Status tracking through the underwriting process. Group agreed. Discussion: Using Back Office Operations Role as an example, how do they access or participate in the process. The firm will say which functions they need to support. And, the access to the data will be assigned by the Firm within each function/business process. Karen felt that the first phase in defining the role answers the who. The next phase, need to look at the data points around the function to determine what role needs access. This is additional definition that needs to occur in order to tie the roles to the functions. Homework for next week 1. Review last 5 definitions for the roles to finalize -5-
2. Review list of function definitions that Jeanann provides and be prepared to wordsmith during the next meeting. 3. Modify the impacted functions and select the roles where you think the data needs to be provided for review during the next meeting. 1/30 Action Items: # Action Item Assigned To Due Date Update 3 Action Item: Carriers confirm that they need to recognize the RIA as a role on the policy. Carriers 2/5/2019 Registered Investment Advisor at entity and individual level are tracked in the Policy Admin system and would need to track that type in the Marketplace. The additional roles were added. 2/6 Action Items: # Action Item Assigned To Due Date Update 1 Action Item: Jeanann: will bring over the RIA and IAR definitions from last year s cycle for inclusion in the roles spreadsheet. 2 Action Item: GA: Confirm if GA has a Branch Manager Role Jeanann 2/13/19 Roles were added to the Producer Roles Summary document. General Agency 2/13/19 3 Homework for Next week: 1. Review the definition changes and agree to them, let us know if any questions. (highlighted in green) All 2/13/19 2. Review lifecycle functions definitions and be prepared to discuss as a group any modifications -6-