Differences in producer and client experience

As we move some of our service functionality to a new platform, please note the below differences in the producer/client experience for the following fixed index annuity (FIA) products:

Allianz Accumulation Advantage 7® Annuity
Allianz Accumulation Advantage+® Annuity
Allianz Benefit Control+™ Annuity
Allianz 222+™ Annuity

New Business

Amendment process

We have implemented a new two-page form to resolve material changes on pending applications. The form is called an Annuity Purchase Acknowledgement (APA) for digital applications or an Annuity Purchase Confirmation (APC) for paper applications.
The APA or APC will not specifically detail the change or amendment. Rather, the client is reviewing the entire form to ensure their application data and information is correct.
The form is required to be signed and returned to Allianz upon delivery of the Contract/Welcome Packet.

Applications

A new product-specific application packet is needed for each product applied for on our new system.
This allows us to be more nimble when making product changes and supports our efforts to offer the best value possible to financial professionals and clients.

ApplyNOW

There is a new look and feel to the digital application process which includes new reflexive technology that guides movement through the application. With reflexive technology, ApplyNOW/Firelight will only prompt questions that apply for previous answers on the application. For example, if you select "individual ownership,” there will not be any questions regarding a plan-owned contract.
New ACH functionality allows us to verify the routing and account number right away rather than after the application is submitted. This will ensure the information is correct before submittal.

Contract Profile

The Contract Profile replaces the Policy Delivery Overview in the Welcome Packet. In addition, the Contract Profile presentation differs from what was in the Policy Delivery Overview.
Producers should familiarize themselves with the new Contract Profile format prior to delivering the Contract or Welcome Packet to the customer.

Custom delivery preferences

Delivery preferences selected on ApplyNOW/Firelight for client correspondence can now be specified by type.
It has shifted from an "all-or-nothing" election to user-customizable preferences by correspondence type (e.g., contract delivery, statements, general correspondence, and tax forms) (Subject to BD restrictions).

Free look to another Allianz product

If the customer would like to switch products while a contract is pending or within its free look period, producers need to submit a new Application packet, SOU, and Product Change LOI (if approved by BD).

Paper applications

Paper applications that are in good order will receive a policy number and be visible on the website within one business day.
Applications that are not in good order (missing information) will need to be in good order before they receive a policy number and are visible on www.allianzlife.com.
If a change needs to be made after a paper application receives a policy number, we will require a Letter of Intent (LOI) signed by the client with the updates. This pre-issue LOI is required in order for us to issue the policy.

Pre-issue interest

On the new system, we will discontinue paying interest on premiums in suspense while the contract is pending.

Suitability

We’ve implemented advanced/reflexive questions on ApplyNOW/Firelight applications to streamline the application process, to ask suitability questions, and to gather data up-front more efficiently. This will reduce the number of advanced suitability reviews on the back end and free up resources to handle advanced reviews more quickly.

UGMA/UTMA

To align across product lines, UGMA/UTMA ownership is not available.

Commissions

Commission age bands

The age of the policy owner when the premium is received is used to determine the commission payable, rather than the issue age.
If the client has moved to an older age band (e.g., from 75 at issue to 76 when premium is received), the commissions would be paid at the reduced scale.

Commission chargeback window

The commissions chargeback window has been updated from "12 months from issue" to "12 months after the premium is added" (chargebacks are treated as "First In, First Out (FIFO)."
Given this change, producers may find it’s possible to receive a chargeback after year 1.

No chargeback for RMDs/death claims

Producers will not receive a chargeback on an RMD or a death claim.
Chargebacks will still be processed for free looks, withdrawals, and surrenders during the chargeback window.
Reminder: We don't charge back on income; chargebacks are treated as "First In, First Out (FIFO)."

Inforce

Death benefit processing

Death Benefit will be calculated as of Date of Death rather than Date of Processing.
Allianz has been an outlier in the industry and the new system allows us to better align with the standard. This change will cut down on inconsistencies between beneficiaries who processed at different times and are receiving different values.

Electronic Funds Transfer (EFT) premium payments

Ongoing premium payment EFTs are not available.
Upfront electronic premium payment with an application is allowed but rarely elected for annuities.

Limiting transactions during reallocation window

Remember this tagline: Keep it REAL – Reallocate First, Avoid Limitations.
Only applies to fixed index annuity (FIA) contracts with a policy number beginning with F.
If any limiting transaction is requested prior to an allocation change within the reallocation window, then the contract will be ineligible for allocation changes until the following contract anniversary.
For Allianz Benefit Control+™ Annuity contracts, Bonus Control Benefit Option changes will also be prevented until the following contract anniversary if a prior limiting transaction is made in the reallocation window.
Perform limiting transactions AFTER changing the allocation or Bonus Control Benefit Option (on Allianz Benefit Control+™ Annuity contracts) to ensure the change takes effect this contract year. Limiting transactions include:
- Index Locks
- Free and/or partial withdrawals
- Income Flex Benefit withdrawals
- Systematic withdrawals
- Required Minimum Distributions (RMDs)
- Partial Roth IRA conversions
- Full Roth IRA conversions (only if requesting tax withholding)
^* Note: Financial professionals may need to manage different requirements for old contracts vs. new.

Partial Roth IRA conversions

Partial Roth conversion capabilities will be available on Allianz Accumulation Advantage 7® Annuity, Allianz Accumulation Advantage+® Annuity, Allianz Benefit Control+™ Annuity, and Allianz 222+™ Annuity (for contracts issued May 6, 2025 and later).

Financial professionals will notice three primary experience differences as compared to legacy products:

Contract splits: The original IRA contract will remain in force and the partial Roth IRA will be set up as a child contract under the existing IRA contract.
Welcome packets: Clients will receive a welcome packet for the converted Roth IRA contract along with amendments and an endorsement explaining the tax code has changed to a Roth IRA. These documents indicate the converted contract is a Roth IRA. Clients should keep the contract, amendments, and endorsements together for future reference.
Limiting Transactions: Roth conversions are a limiting transaction during the contract reallocation window.
- Full Roth conversions – only if requesting tax withholding
- Partial Roth conversions – in all instances

Clients and financial professionals may have different experiences with their partial Roth IRA conversions depending on the product. We are actively working on solutions to align the experience where possible and will provide updates as they become available.

Reallocation window

There is a shorter timeframe after the anniversary to request a reallocation.
Contractually the reallocation window remains within 21 days following the contract anniversary. However, we are currently allowing reallocations within 28 days following the contract anniversary as an exception. This exception may be discontinued at any time.

Systematic withdrawals

The first-year calculation of a systematic penalty-free withdrawal assumes a client wants the full amount requested (e.g., if yearly maximum penalty-free withdrawal amount is $12,000 and request is submitted in month 7 requesting maximum penalty-free amount, then six $2,000 payments will be processed, in contrast to the prior process which would pay six $1,000 payments).

For questions, contact your Allianz representative.

Any distributions are subject to ordinary income tax and, if taken prior to age 59½, a 10% federal additional tax.

Guarantees are backed solely by the financial strength and claims-paying ability of the issuing company.

Products are issued by Allianz Life Insurance Company of North America, PO Box 59060, Minneapolis, MN 55459-0060.

Product and feature availability may vary by state and broker/dealer.

This content does not apply in the state of New York.

For financial professional use only – not for use with the public.