DOL Fiduciary Rule Update

The Department of Labor announced the Impartial Conduct Standards were applicable effective June 10, 2017.  

Important dates

June 10 – Dec. 31, 2017

The fiduciary definition is in effect for all business involving a deposit to or withdrawal from an IRA, ERISA plan or 401K plan. 

Producers must use an exemption to receive a commission. During the transition period, PTE 84-24 covers all annuity and insurance product sales from Motorists Life.

How to use the PTE 84-24 exemption

As a producer you must:

1.     Comply with the impartial conduct standards, which requires producers to act in the client’s best interest, receive only reasonable compensation and avoid misrepresentations.

2.     Prior to the transaction, provide a written disclosure complying with PTE 84-24, which includes disclosing your relationship with the insurance company and commissions that will be received.

We have sample PTE 84-24 disclosures available on our agent website. It is not required to be submitted with an application. You do not have to use our disclosure, but you are responsible for complying with the requirement. 

You do not need to submit the disclosure to us as part of the new business process.

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.