A Letter from NACO
March 12, 2009
To Our Valued North American Distributors:
North American has strongly committed to a long-term focus that delivers value for you and your clients. Our financial strength as a privately held Company has clearly provided us with an advantage in the marketplace which we intend to preserve. Our focus has been and will continue to be in providing competitive products, fair compensation and quality service.
North American's investment portfolios have performed better than most of our competitors in the current environment. We intend to manage our investments for the long-term and maintain our long-term financial strength.
We are experiencing record levels of new annuity applications and are very grateful for your trust in our Company. The high amount of annuity applications is challenging our ability to provide quality service and threatens our quality long-term relationships that we have worked very hard to build.
We are making the following changes effective Monday, March 16, 2009:
Minimum premiums on all fixed annuity applications will be raised to $20,000 for Qualified and Non-Qualified business. (We will continue to accept 403(b) salary reduction business at our current minimum premiums.)
Maximum fixed annuity premiums will be lowered to $1 Million, per owner/annuitant. We will temporarily suspend new fixed annuity agent appointments. PLEASE NOTE: This does not effect North American Life Insurance Contracting. Appointment of agents to sell life insurance policies is encouraged.
As a field distributor, we have truly appreciated your efforts to bring us new agents over the years. Unfortunately, we must temporarily suspend contracting and processing new agents so we can properly service and support the many thousands of agents already contracted and producing.
These changes, while difficult, are necessary in order to continue to provide our long term values in products and services to our distribution partners. We continue to appreciate you and your business!
Respectfully,
Esfand Dinshaw
President, Annuities, North American