DOL Fiduciary Rule change to applications
Effective May 20, 2017, Motorists Life changed all applications to ensure compliance with the Department of Labor Fiduciary Rule.
We recognize that as our agents you already work in your clients’ best interest, so we feel it is important to communicate the specific standards the DOL Fiduciary Rule outlines. The rule expects all agents dealing with ERISA-qualified funds to follow the impartial conduct standards as outlined in the regulation, effective June 9, 2017.
These standards include:
- Best interest advice: prudence and loyalty
- No more than reasonable compensation
- No misleading statements about investment transactions or compensation and the disclosure of any conflicts of interest to client.
Changes to applications have been made to incorporate the new DOL Fiduciary Rule scheduled to be phased in April 10, 2017-Jan.1, 2018, that expands the "investment advice fiduciary" definition under the Employee Retirement Income Security Act of 1974 (ERISA). No additional changes to the contract or policy pages or rates have been made.
Outline of application changes:
- Agent's statement – all applications
- Existing insurance or insurance history – new business applications
- Rollover, transfers and 1035 exchanges – annuity applications
Be sure you are using the following apps:
| App type | Previous | Current |
| Annuity | ICC10-5001 (11-10) | ICC17-5001 (1-17) |
| Easy App | ICC16-777 (7-13) | ICC17-777 (1-17) |
| Easy App Florida | ML-777 FL (4-12) | ML-777 FL (1-17) |
| Single Premium | ICC10-855 (3-12) | ICC17-855 (1-17) |
| Single Premium Florida | ML-855 FL (3-12)v1.01 | ML-855 FL (1-17) |
| SIWL/GBWL | ICC10-853-AP | ICC17-853-AP (1-17) |
| SIWL/GBWL Florida | ML-853-APSI FL (4-12) | ML-853-APSI FL (1-17) |
| UWNB | ICC10-677 (6-16) | ICC17-677 (1-17) |
| UWNB Florida | ML-675 FL (6-16) | ML-675 FL (1-17) |
| Youth Life | ICC10-671 (4-12) | ICC17-671 (1-17) |
| Youth Life Florida | ML-671 FL (4-12) | ML-671 FL (1-17) |
Old apps will not be accepted after June 20, 2017.
Motorists Life will continue to monitor the ruling for additional information. We will communicate with you as this process develops over the coming months. Thank you for your patience and understanding as we navigate these new regulations. If you have questions, please contact Jamie Kibler at 614-225-8409 or jamie.kibler@motoristsgroup.com.