SILA Agency-Carrier Subgroup (SACS) Meeting
2nd Quarter 2018 Meeting
Date: Thursday, May 17, 2018
Time: 2:00 -3:00 PM Eastern
Call Number: 303-248-0285; Code 3405506#
1. Welcome –Sandy Von Ruden, Paul Willis Co-Chairs
2. 2018 SACS Task Groups:
· Best Practices Handbook – Content Update
o Agency Affiliations
o Agency Branch Office Licensing
3. Best Practices Handbook Update – Linda Brunette
4. Producer Licensing Task Group Updates – Linda Brunette
5. 2018 SILA National Education Conference – Diana Capes
6. Open Forum Discussion Topics (as time permits) – no minutes taken during this portion of the meeting
· Affiliations that require a fee. How are other agencies paying for affiliations in states where a fee is charged? For example, the State of Washington has an $20.00 affiliation fee which we pay from an individual credit card. How are other firms paying for the required fee?
· Commissions - Paper vs Direct Deposit
In my company we currently offer Producers the option to receive paper checks and paper commissions statements as well as the option to have their commission payments direct deposited into their account via Electronic Funds Transfer and receive auto-generated eStatements (.pdf format). What are some of the industry best practices for motivating Producers to opt into EFT and eSTatements as opposed to remaining on paper? I have heard that some companies no longer offer paper statements while others charge their Producers a set annual fee to continue to receive paper statements. Could you share some tactics that your company uses to motivate Producers to go paperless?
· Where is a License needed in a multiple state scenario
When an agency is selling a product in one state but the insured actually is a resident of another state, in which state(s) does the agency need a license. One example would be involving a trust which is settled in state A but the heirs are in state B. If the product sold to the heirs is transacted in state A (meaning they meet the agent in that state and sign the documents there, etc.) would the agent have to have only the license in state A? Would it matter if the product was life insurance versus a variable annuity versus a fixed product? Presumably if the agent transacted this electronically or via the mail with the person while they are in state B, a license would be needed there, but otherwise the location of the physical sale would dictate the need for a license. Thoughts?