product specific training certification naic suitability in annuity transactions saving : investing...

Product Specific Training CertificationNAIC suitability in annuity transactions

SAVING : INVESTING : PLANNING

FOR FINANCIAL ADVISOR USE ONLY. NOT TO BE DISTRIBUTED TO PUBLIC.

Product features described are for NY only

FOR FINANCIAL ADVISOR USE ONLY. NOT TO BE DISTRIBUTED TO PUBLIC. 2

INCLUDES

1 Portfolio Director® Fixed and Variable Annuity

2 Equity Director℠ Annuity

3 VALIC Assured Choice Annuity®

4 ProFlex℠ Annuity

5 Premiere 5℠ and 7℠ Annuities

6 Inside Edge® Annuity

7 Fixed-Interest Options


Required product-specific training

Your state requires agents to complete product-specific training prior to selling annuities. Even if you have sold these products in the past, you must complete a training module for each annuity product in order to sell the products.

Please review the following product-specific information When finished, sign the certificate at the end of the

presentation to acknowledge you have read and understand the product information

Once done, you will be eligible to continue selling

For product questions, please contact the VALIC Internal Wholesaling team at 1-877-246-4501.

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Portfolio Director1


Portfolio Director

Product Type Fixed and variable annuity offered in all group markets

Investment Types Available 3 Fixed/59 Variable Options

Investment Options Up to 20 options can be open at a time

Free-Look Period 10 Days

Minimum Guaranteed Rate 3% in NY

Interest Rates DeclaredFixed Account Plus – Banded Rate declared monthlyShort Term Fixed – Portfolio rate declared annuallyMulti Year Option – Rate declared monthly

Minimum Purchase Premium $30.00

Minimum Subsequent Premium $30.00

Maximum Premium Amount (without prior co. approval)

$750,000

Maximum Annuity Age Age 75

Annuity Options

Life Life with Guaranteed Period Life with Cash or Unit Refund Joint and Survivor Life Designated Period

Administrative Fee $3.75/QTR depending on your contract (waived if in Fixed funds only)

Initial Sales Charge None

Separate Account Fee Range 0.75% – 1.25%


Portfolio Director

Net Fund Fee Range 0.19% - 1.35%

Withdrawal ChargeThe lesser of: 5% of the amount withdrawn, or 5% of all purchase payments made within the last 5 years

Free Partial Withdrawals

10% annually; Death; Annuitization; No purchase payments in last 60 monthsDisability; 15 years in contract; Separation from service/5 years in contract/age 55; 5 years in contract/age 59 ½; No-Charge Minimum Distribution; No-Charge Systematic Withdrawal

10% Free Out Yes

Transfers to Investment OptionsYes. Must comply with Investor Trading Policy. Transfers from the Multi Year options may incur a market value adjustment if made prior to the end of a term.

Amount of Death Benefit

In NY the contract death benefit is the greater of Account Value, or 100% of all purchase payments less all prior withdrawals, charges or portions applied under a payout option. The contract endorsement states that if contract death benefit amount exceeds account value, then the total death benefit paid may be adjusted to limit the death benefit due to withdrawals. An adjusted purchase payment amount of 100% of purchase payments minus gross withdrawals. The contract death benefit and the adjustment purchase payment amount are compared and the lesser benefit is then compared to the account value and the beneficiary will receive the greater of those two amounts.

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Equity Director2


Equity Director

Product Type Fixed and variable annuity offered in all group markets

Investment Types Available 3 Fixed/58 Variable Options

Investment Options Up to 20 options can be open at a time



Interest Rates DeclaredFixed Account Plus – Banded Rate declared monthlyShort Term Fixed – Portfolio rate declared annuallyMulti Year Option – Rate declared monthly

Minimum Purchase Premium $30.00

Minimum Subsequent Premium $30.00


$750,000


Annuity Options

Life Life with Guaranteed Period Life with Cash or Unit Refund Joint and Survivor Life Designated Period

Administrative Fee $3.75/QTR depending on your contract (waived if in Fixed funds only)


Separate Account Fee Range 1.60%-2.10%


Equity Director

Net Fund Fee Range0.19% – 1.35% (Rollover IRA)0.38% – 1.18% (NQDA)

Withdrawal ChargeThe lesser of: 5% of the amount withdrawn, or 5% of all purchase payments made within the last 5 years


10% annually; Death; Annuitization; No purchase payments in last 60 monthsDisability; 15 years in contract; Separation from service/5 years in contract/age 55; 5 years in contract/age 59 ½; No-Charge Minimum Distribution; No-Charge Systematic Withdrawal

10% Free Out Yes

Transfers to Investment OptionsYes. Must comply with Investor Trading Policy. Transfers from the Multi Year options may incur a market value adjustment if made prior to the end of a term.

Amount of Death Benefit

In NY the contract death benefit is the greater of Account Value, or 100% of all purchase payments less all prior withdrawals, charges or portions applied under a payout option. If contract death benefit amount exceeds account value, then the total death benefit paid may be adjusted to limit the death benefit due to withdrawals. An adjusted purchase payment amount of 100% of purchase payments minus gross withdrawals. The contract death benefit and the adjustment purchase payment amount are compared and the lesser benefit is then compared to the account value and the beneficiary will receive the greater of those two amounts.

Assured Choice Annuity310


VALIC Assured Choice

Contribution Type Single premium

Plan Types Available IRA, Roth IRA, NQDA

Premium Bonus No

Return-of-Premium Guarantee No

Free-Look Period 20 days

Initial Guaranteed Interest Rate Guaranteed for initial rate term selected.

Interest Rate Enhancement N/A

Minimum Guaranteed Rate Index

Guaranteed Rate LockInitial rate lock is guaranteed for 60 days from the date of signing the application on any 1035 exchange, direct rollover or transfer

When Interest Rates Declared Reviewed monthly

Market Value Adjustment (MVA)Yes – withdrawals in excess of permitted amounts are subject to an MVA during the Term Period. No MVA applies to withdrawals made during 30-day window following Term.

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Minimum Purchase Premium $10,000

Minimum Subsequent Premium None

Minimum Account Value $2,000

Minimum Random Withdrawals $250

Minimum Systematic Withdrawals

$50


$750,000

Issue Age 0-85 Nonqualified and qualified annuities

Maximum Annuity Age Age 90 – Nonqualified annuities

Annual Fee None



Free Partial WithdrawalsAfter 30 days, can take systematic withdrawals of accumulated interest with no withdrawal charges or MVA.

10% Free Out

No free out in first year. After first contract year, greater of accumulated interest or 10% of previous anniversary account value available each year free of charges or MVA. Free out amount is noncumulative and any unused portion does not roll over to the following year.

Systematic Withdrawals Yes

Extended Care Waiver No

Terminal Illness Waiver No

Amount of Death Benefit Annuity value. No early withdrawal charge or MVA applies.

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Withdrawal Charge

Policy Year 1 2 3 4 5 6 7 8+

Charge % 7 6 5 4 3 2 1 0%

ProFlex Annuity414


ProFlex Annuity

Contribution Type Flexible premium

Plan Types AvailableIndividual or Transfers - IRA, Roth IRA, NQDASalary Reduction - 403(b)

Premium Bonus No

Return-of-Premium Guarantee Yes


Initial Guaranteed Interest Rate

Interest rates on new deposits received are guaranteed for the remainder of the calendar year and intended to be credited for the next calendar year. Thereafter, a pooled rate will be credited to the deposit and related interest.

Interest Rate Enhancement Yes. Applies to each deposit for one year from date of deposit.


Guaranteed Rate Lock N/A

When Interest Rates Declared Reviewed monthly

Market Value Adjustment (MVA) N/A

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ProFlex Annuity

Minimum Purchase Premium $2,000 or $50 per month

Minimum Subsequent Premium $50 per month




$50


$750,000

Issue Age0-85 Nonqualified and qualified rollover annuities0-70 Qualified

Maximum Annuity Age Age 90 - Nonqualified annuities

Annual Fee None



Free Partial WithdrawalsWithdrawal of 10% of the annuity value annually after first policy year.

10% Free Out

No free out in first year. After first contract year, 10% of annuity value free of charges each year. Free out amount is non-cumulative and any unused portion does not roll over to the following year.


Extended Care Waiver Yes

Terminal Illness Waiver Yes

Amount of Death Benefit Annuity value, less any outstanding loan balance.

ProFlex Annuity

Withdrawal Charge

Premium Year 1 2 3 4 5 6

Charge % 5 5 5 5 5 0%

Premiere 5 and Premiere 7518


Premiere 5 and 7


Plan Types Available IRA, Roth IRA, SEP IRA, NQDA

Premium Bonus No

Return-of-Premium Guarantee Yes


Initial Guaranteed Interest Rate

Initial interest rate for original purchase payment is guaranteed for the guarantee period offered (Premiere 5 offers 1 yr, 3 yr, or 5 yr and Premiere 7 offers 1 yr, 3 yr or 7 yr). Additional contributions will earn the interest rate then in effect.

Interest Rate Enhancement

An interest rate enhancement may be available for the initial guarantee period only. In addition, an interest rate enhancement for the guarantee period only is available for deposits over $100,000 from non-VALIC sources. (There is also a 15 bp bonus on IRA plans.)


Guaranteed Rate LockInitial rate lock is guaranteed for 60 days from the date of signing the application on any 1035 exchange, direct rollover or transfer

When Interest Rates Declared Reviewed biweekly

Market Value Adjustment (MVA) No


Premiere 5 and 7

Minimum Purchase Premium $5,000 nonqualified/$2,000 qualified

Minimum Subsequent Premium $2,000




$50


$750,000 ($500,000 above age 75)

Issue Age 0-85 transfers or rollovers


Annual Fee None




After 30 days, can take systematic withdrawals of accumulated interest with no withdrawal charges. If withdrawals are less than 10%, then the remaining percentage is carried over to the next year (not to exceed 20%).

10% Free Out

No free out in first year. After first contract year, greater of accumulated interest or 10% of previous anniversary account value free of charges. Any unused portion may be carried over to next year up to a maximum of 20% in any year.


Extended Care Waiver Yes

Terminal Illness Waiver No

Amount of Death Benefit Annuity value. No early withdrawal charge applies.

Premiere 5 and 7

Withdrawal Charge

Premium Year 1 2 3 4 5 6 7 8+

Charge % 7 yr. 9 8 7 6 5 4 2 0%

Charge % 5 yr. 9 8 7 6 5 0 0 0%

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Inside Edge6


Inside Edge

Program DescriptionProgram includes a mutual fund product with a fixed annuity investment product.

Custodian VALIC

Custodian Fee $30 per year ($10 per quarter)

Contribution Type Flexible Premium

Plan Types Available 403(b), 401(a) ROTH, 457(b) (Profile offer Special Pay Plans)

Mutual Fund Investment Options 88 funds available (47 VCI & VCII and 41 public funds)

Net Fund Annual Expense Range 0.38% – 1.77% (includes reimbursements or expense waivers)

Fixed Investment

Long Term Fixed Annuity (Individual contract): 20% free out per year; 5% withdrawal charge on withdrawals in excess of 20%. Exceptions to Withdrawal Charge: Annuitization; Death; Disability; Minimum Distribution; 59½ or older and five years in the contract; Separation from Service/Retirement.

Interest Crediting Banded (declared monthly, credited daily)


Return of Premium Guarantee No


Minimum Purchase Premium Group Market - $50

Minimum Subsequent Premium Group Market - $50

Minimum Account Value $200


Inside Edge

Minimum Systematic Withdrawals $50

Issue Age Age 90 (may differ based on state requirements for fixed annuity)




Amount of Death Benefit Accumulation value of mutual funds plus the fixed annuity

GPS Fees

Portfolio Manager Service optional for 403(b) First $100,000 0.60% Next $150,000 0.55% Amount over $250,000 0.45%

OR Portfolio Advisor Service of $25 annual fee

CompensationGroup: NoneGPS Asset Based Compensation

Fixed-Interest Options725


Fixed-Interest Option (GFUA-398)

Product DescriptionGroup Fixed Unallocated Annuity – Contract is issued to the Plan Sponsor. Participants receive a welcome letter but no contract.


Plan Types Available 403(b), 457(b), 401(a)

Return-of-Premium Guarantee N/A

Free-Look Period N/A

Interest RateInterest rates are declared monthly and are guaranteed until that rate is changed. All deposits (new and old) receive the same interest rate.

Minimum Guaranteed Rate 1.5%

When Interest Rates Declared Monthly

Minimum Purchase Premium N/A

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Minimum Purchase Premium N/A

Minimum Subsequent Premium N/A

Minimum Account Value N/A

Maximum Deposit Value N/A

Issue Age N/A

Maximum Annuity Age N/A

Annual Fee None


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Surrender Restrictions

Liquidation is done at the group level.

• Five year Equal Amount installment method

• Decreasing Balance method

Additional options available with Underwriting Committee Approval

• Market Value Adjustment – allows for neutral, positive or negative adjustment (not available in all states)

• No Surrender Charge Option

Participant Withdrawal Charge None

Participant Withdrawal Restrictions

• None – if the plan has no competing options.

• If the plan includes a competing option, the Participant must transfer fixed assets to an equity option where the requested transfers must remain for at least 90 days before transferring to the competing option.

Free Out N/A


Amount of Death Benefit N/A (Group Unallocated contract)


I certify that I have read and understand the training materials provided. I further certify that I will read any updated and/or additional product training materials provided by VALIC. I understand that it is my obligation as an agent appointed with VALIC to be knowledgeable of the material features of the annuity products I sell.

_________________________________ __________________________________

(Signature) (Date)

_________________________________ __________________________________

(Printed Name) (VALIC Agent Number)

You may fax this form to our Licensing Department at (806) 342-2849 or email it to VALIC at [email protected]. NY-IND

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Product Training Certification


Annuity contracts are issued by The Variable Annuity Life Insurance Company and distributed by its affiliate, American General Distributors, Inc., member FINRA.

VALIC represents The Variable Annuity Life Insurance Company and its subsidiaries, VALIC Financial Advisors, Inc. and VALIC Retirement Services Company.

Copyright © The Variable Annuity Life Insurance Company. All rights reserved.VALIC.comVC 24129 (05/2011) J82342

THANK YOUSAVING : INVESTING : PLANNING


Product Specific Training CertificationNAIC suitability in annuity transactions

Product features described are for NY only

product specific training certification naic suitability in annuity transactions saving : investing...

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