Jefferson National Reg 60 Guidebook

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Jefferson National Life Insurance Company of New York is offering its highly innovative flat fee VA in New York. This brochure will help you understand the Regulation 60 procedures you’ll need to replace life insurance policies and annuity contracts with Monument Advisor of New York.

Regulation 60 Procedures Replacement of Life Insurance Policies and Annuity Contracts | Jefferson National Life Insurance Company of New York | 866.667.0561

What is Regulation 60?

New York Regulation 60, which became effective on November 10, 1998, seeks to protect contract owners who are considering replacing their life insurance or annuity contracts, including variable contracts. This guide provides you with information regarding certain procedures that must be followed with respect to internal and external replacements of life insurance and annuity contracts.

In particular, Regulation 60 requires insurers and their agents/brokers to provide certain hypothetical illustrations to prospective customers when a life insurance contract or annuity contract is to be replaced with another. The New York State Insurance Department enacted these procedures to ensure full disclosure of information to the consumer.

Parties that may be involved in the Regulation 60 process Advisor Registered Investment Advisor who is not appointed with Jefferson National Life Insurance Company of New York (“JNL NY�).

Broker Licensed as a Broker in the state of New York and is representing a customer purchasing an annuity from JNL NY.

General Guidelines - All replacement forms must be printed in at least 12 point type.

- As per section 51.6(d) on outgoing replacements, the Company will take the business back for 60 days.

- As per section 51.6(d) when the Company is the replacing carrier, we will grant a 60 day free look to owners.

- All Agents must be trained on the Regulation 60 process.

Agent Internal JNL NY licensed and appointed agent.

60

REGULATION

The steps outlined below describe how the Company will obtain a listing of all policies being replaced, proposals, sales materials, important notices, and disclosure statements.

FOR NY ADVISORS: Some preliminary work must be completed prior to step 1. A Jefferson National Agent must first

educate New York Advisors about the Monument Advisor New York variable annuity. Once he/she identifies a potential MA NY client, an internal JNL NY licensed agent must then discuss the product features with the potential client (via phone with the Advisor).

Step 1: The Agent/Broker determines whether the client is replacing or otherwise changing the status of an existing annuity contract or life insurance policy.

Note: The following forms must be obtained with or as part of the application. Applicant must sign and receive a copy of each form.

- Complete Form A (also referred to as Appendix 11 in Regulation 60) – Definition of Replacement. Note: applicant must sign.

• If the applicant answers “No” to all questions on the form, the requirements of Regulation 60 have been met.

Submit copy of signed form along with the application and all other required New Business documents to JNL NY. • If the applicant answers “Yes” to any question on the form, Form B and C must also be completed.

• The agent must sign Form A indicating to the best of his/her knowledge whether a replacement is involved or not.

- Complete Form B – Authorization to Disclose Contract Information form.

- Fax all forms to JNL NY at 866.667.0563

Step 2: Once JNL NY receives the above forms, all Regulation 60 forms must be date stamped. The JNL NY Regulation 60 Team will: - Complete Form D (also referred to Appendix 10B in Regulation 60) – New York Department of Financial Services Disclosure Statement (Annuity to Annuity Replacement Only).

- If this is a Life Insurance to Annuity Replacement, complete form E (also referred to Appendix 10A in Regulation 60) – New York Department of Financial Services Disclosure Statement (Life Insurance to Annuity).

- The JNL Regulation 60 Team will fax or email the Disclosure Statement to the replaced insurer, along with Form B (Authorization to Disclose Contract Information) within 10 days of receipt.

• At that time, the replaced insurer has 20 calendar days to provide the information required to complete Form D (or E) - Disclosure Statement.

• Once the required values are received, the JNL NY Regulation 60 Team will use that information received to complete the Disclosure Statement. If no values are received from the company to be replaced and good faith approximations are required, the Advisor/Broker will be notified and will be required to complete the initial Disclosure Statement, instead of the company.

- Once completed, the JNL NY Regulation 60 Team will send the completed Disclosure Statement and a copy of Form C (also referred to as Appendix 10C in Regulation 60) – Important Notice Regarding Replacements or Change of Life Insurance Policies or Annuity Contracts (via email, fax, or U.S. mail) to the client/Broker for review.

- If sent to the client: • The Agent will call the client to let them know that the Regulation 60 paperwork is being sent via email, fax, or U.S. mail. If the client has an Advisor, the Advisor will also be notified and a copy will be sent to them separately.

• Once the client receives the above, the client, along with their Advisor (if they have an Advisor), will contact the Agent to discuss the forms with them over the phone, in person, or via email and step through the replacement process. If the client has not contacted the Agent within 5 business days after paperwork is sent, the Agent will contact the client to see if the forms have been received. The Agent will discuss the Regulation 60 paperwork and the application, if the client is interested, at this time, or set up a future meeting.

- If sent to the Broker: • The Broker will review the forms with the client and step through the replacement process.

• Appropriate signatures will be obtained to proceed with the replacement (prior to obtaining the client signatures on the application).

Note: there may be times when the Disclosure Statement may not be signed by the Agent on the same day the Disclosure Statement is signed by the client. This is due to the fact that a JNL NY Agent will be facilitating the completion of the Disclosure Statement via fax and email.

Step 3: All forms are returned to the JNL NY Regulation 60 Team.

• JNL NY Regulation 60 Team will begin the transfer process.

If the replacement policy is issued other than as applied for, the Regulation 60 Team Leader must complete a new Disclosure Statement form to be delivered with the contract. At delivery, the applicant must acknowledge and sign that s/he has received and read the revised Disclosure Statement form. A copy must be left with the applicant for her/his records.

JNL NY as Replaced Carrier

Record Keeping

Upon receipt of a signed NY Regulation 60 Authorization to Release Information for Disclosure Statement with respect to an inforce variable annuity contract, the JNL NY Regulation 60 Team will, within 20 calendar days, complete the Disclosure Statement regarding the Jefferson National contract and return it to the proposed replacing carrier.

Copies of all Regulation 60 paperwork will be maintained for 6 years or until after the filing of the report on examination in which the transaction was subject to review by the appropriate insurance official of its state of domicile, whichever is later.

Company Reporting As required by Regulation 60, the JNL Regulation 60 Team will submit quarterly reports within thirty (30) days of the end of each quarter to the Superintendent of Insurance, indicating which insurers, if any, have failed to provide the information as required in Section 51(c)(2).

JNL201503-A028

10350 Ormsby Park Place | Louisville, Kentucky 40223 | 866.667.0564 | www.jeffnat.com