Producer Agreement Rule Change—Effective 7/1/07

In accordance with The Prudential Insurance Company of America’s commitment to transparency, producer compensation disclosures are required to be made to Prudential clients and prospective clients at various times including during the bid or proposal process, at or prior to the point of sale, and no less than annually thereafter to inforce clients.

Effective 7/1/2007, the following rules apply to all producers, including any producer with an existing Producer Agreement with Prudential’s Group Insurance:

  • The producer shall deliver to Prudential clients and prospective clients a copy of: (a) a compensation notice prepared by Prudential that is included in our proposal, and (b) a compensation statement prepared by Prudential that is issued annually and with new policies.

Please note: The Compensation Notice, which is to be included in the proposal, will require a signature for all Add Issue (New Product and Buyout) cases. For New Issue cases, signature on the RFGI form will suffice as acceptance of the agreement.

The compensation notice is also included in Prudential's renewal correspondence. The client's premium remittance following the renewal date is considered their acceptance of this correspondence.

  • Prudential requires the producer to fully disclose to Prudential clients and prospective clients all commissions and fees payable to the producer by Prudential in connection with the sale of proposed group insurance coverage(s) and services. Prudential further requires written client consent to the payment of all such commissions and fees by Prudential to the producer. A copy of that consent (which is included in the RFGI form) must be provided to Prudential at the point of sale.

Prudential reserves the right, at its sole discretion, to amend, alter, or modify these rules at any time. Any such alteration or modification will be made in writing by the Company and posted on the Company’s website at prior to thirty (30) days of the effective date of the change.

Producer agreement rule change form web version

5-11 – v1 – bsj/sg

GL.2007.117Ed. 04.2007