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Lincoln Fincancial Changes Rate Lock Procedures

Memo Copied Below;

10-12-2009

Fixed Annuity Sales Update:
Update to rate lock procedures
Thank you for trusting Lincoln Financial Group with your fixed annuity clients! We want to make you aware of some modifications to our rate lock procedures. Effective November 1st all business that is included in Section 4 of the Acord form will only be eligible for the 7-day rate hold recently implemented for CWA business. Regardless of whether or not Lincoln initiates the transfer of funds there will no longer be a 60-day rate hold for asset transfers (CDs, mutual funds, brokerage accounts, etc.). Applications received between today and October 31st will be provided a rate hold through November 30th. If funds are not received and the paperwork in good order in time for the last issue date in November then the contract will issue with the rates in effect when the funds are received and the paperwork is in good order. Any applications received November 1st or later will be provided the 7 day rate lock unless the Acord transfer form indicates fund transfers in sections 3 or 5.

In addition, qualified employer money (401(k), 403(b), defined benefit plans that are rolling over into an IRA) is eligible for a 60-day rate hold (75 –day in NY) regardless of whether Lincoln initiates the transfer as long as the funds are made payable directly to Lincoln. Application and Acord form needs to be submitted indicating Lincoln should not initiate transfer of the the funds. If the client initiates the transfer and the proceeds are not made payable to Lincoln then the case will receive the 7-day rate hold instead of the 60-day (75-day in NY) rate hold.