News Article

Rich Lane
Director,
Sales and Marketing

With the current state of the financial markets and the extreme volatility we see on a daily (even hourly) basis, The Standard will be making changes to some of our annuity sales and new-business procedures beginning with the next rate cycle.

Rate Setting Practices

Beginning this month The Standard will be setting rates more frequently than we have in the past, which was generally once per month. This will allow us to react more quickly to market conditions and to more effectively control the flow of business.

Rate-Hold Practices

In concert with this change, we will also be altering the way rates are held in those scenarios where rates are decreasing. Below are the new application-acceptance and rate-hold procedures that will become effective with the next rate change. Please note that every effort will be made to give at least 72 hours notice of a rate change, but we’ll always reserve the right to act more quickly if required.

Effective Immediately

• All applications must be signed prior to the rate change.
• The original, completed application (including all required supplemental forms) must be received in the home office within four business days of the change.
  • Faxed or scanned applications will no longer be accepted.
• If these conditions are met, the crediting rate of a fixed-rate product and the index rate cap of an index-rate product will now be held for 45 days from the day the application is received in the home office. Note that this is a change from the 60 days we previously used.

Example: A rate reduction to be effective March 10 is announced March 5; an application must be signed by March 9 and be in the home office by March 13 to hold the rate for 45 days.

It’s our hope that these changes will help our new-business team more efficiently process rollovers, transfer and exchanges while also allowing us to continue to offer competitively priced products.

New-Business Tips

• Make sure to have all new business forms accounted for and complete.
  • We now have forms packets available online that include the most common forms required for each product in each state.
• Track your pending and in force business on Policy Inquiry.
• Contact our new-business team at annuitynewbiz@standard.com or (800) 378-4578.
• Take the time to initiate follow-up calls to the original carrier for rollovers, transfers and exchanges.

Please keep in mind that while we are reacting to a very different marketplace, we’re also making an effort to more effectively manage the flow of business. We take very seriously the goal of regaining our reputation for superior — and timely — customer service. We truly do believe this is who we are and how we’re different. And we know that we need to work hard to make you believe that again.

If you have any questions, please contact our sales team at annsales@standard.com or your Master General Agent’s office.

Thank you for your business.

Not For Use With Consumers

The above message is only for contracted representatives of Standard Insurance Company, a subsidiary of StanCorp Financial Group, Inc. This information is not intended for use with consumers.