Internal Replacements with Evidence of Insurability

Protective, West Coast, Empire General, Acquired Companies, and Affiliates

Effective August 1, 2019, Acquired Companies include Great-West Life & Annuity Insurance Company

(See Chase, Federal Kemper, and Zurich Life specific guidelines)

Chase
Federal Kemper
Zurich Life
  • Replacements will receive no new commissions, unless there is new additional premium above the original premium. Additional premiums would be fully commissionable.
  • Term replacements at the end of the guaranteed term period will receive full commissions.
  • No commissions will be paid on rolled over cash value.
  • Rollover values from these existing policies are non-commissionable.
  • The surrender charges are not waived.
Term or Whole Life Internal Replacement to Any Product
  • For contracts less than 8 years, first year commission will be paid only on increase in premium, if any.
    • No commissions will be paid on rolled over cash value.
  • For contracts eight years old or greater, new first-year commission rate will be paid.
    • The first-year excess premium commission rate of the new policy will be paid on rolled over cash value.
Secure T/Custom ChoiceSM Universal Life 10-30 to Any Product Allowed
(or Any Available Product)
  • For contracts less than eight years, first-year commission will be paid up to the net commissionable target premium of the new policy.
    • No commissions will be paid on rolled over cash value.
  • For contracts eight years old or greater, new first-year commission rate will be paid
    • The first-year excess premium commission rate of the new policy will be paid on rolled over cash value.
Universal Life to Universal Life Internal Replacement
(Includes Variable Life, Fixed Life, and Indexed Universal Life)
Internal Replacement with 1035 Exchanges
  • For contracts less than 12 years, if the new policy’s target premium is greater than the old policy’s target premium, the first-year commission rate of the new policy will be paid on the difference in target premium.
    • The first-year excess premium commission rate of the new policy will be paid on premium that is greater than the difference in target premiums.
    • No commission will be paid on rolled over cash value.
    • Rolled over cash value will not count toward the target premium for commission purposes.
  • For contracts 12 years old or greater, the first-year commission rate of the new policy will be paid on the full premium equal to the new annual target premium.
    • The first-year excess premium commission rate of the new policy will be paid on premium greater than the new target premium and rolled over cash value.
    • Rolled over cash value will not count towards the target premium for commission purposes.
Universal Life to Term Internal Replacement
  • For contracts less than 12 years, if the new policy’s annual premium is greater than the old policy’s annual target premium, the first-year commission rate of the new policy will be paid on the difference in the old target premium and new policy premium.
  • For contracts 12 years old or greater, the first-year commission rate of the new policy will be paid on the full new policy premium.
Internal Replacement of Any Universal Life Product
(Includes Variable Life, Fixed Life, and Indexed Universal Life)
to Single Premium Whole Life
  • For contracts less than 12 years, first-year commission will be paid only on increase in premium, if any.
    • No commissions will be paid on rolled over cash value.
  • For contracts 12 years old or greater, new first-year commission rate will be paid.
    • Commissions will be paid on rolled over cash value.
Rollover Loans
  • Rollover loans will be allowed if the new policy allows rollover loans
  • Internal rollover loans are not commissionable.
  • If the new plan does not allow rollover loans, the loan must be paid off before the policy replacement is processed. Existing loans may be paid off using the old policy’s existing cash value.
Surrender Charges
  • The surrender charge of the replaced policy will be waived if the new policy’s surrender charge is greater than or equal to the surrender charge of the replaced policy.
  • If the surrender charge of the new policy is less, the difference between the charge on the replaced policy and the newly issued policy will be charged against the value of the replaced policy. The remaining cash value will be rolled over to the new policy.

 

Let’s deliver on our promises. Together.

PLAG.1309269.07.19
For Professional Use Only. Not for Use With Customers.

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