AIG 1-12-15

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Introducing the ML Strategic Balanced Index

This announcement provides information on the updates to our Power 10 Protector, Power 10 Protector Plus Income, Power 7 Protector and Power 7 Protector Plus Income index annuities issued by American General Life Insurance Company (AGL), including the introduction of a new index in two new index interest crediting strategies, a commission change, and an update to the Premium Enhancement rate.

New Hybrid ML Strategic Balanced IndexTM Being Introduced
A new hybrid index will be utilized by AGL in two new index interest crediting strategies, for new contracts issued on or after the target launch date of January 26, 2015.

Important Index Annuity Updates – Product Retraining Required
All agents, including those who have previously taken our index annuity product training, must take our new product training, which contains important information about these two new index interest crediting strategies and the new index they utilize.

Please click on the following link to access the new product training via Quest CE:

Join us for a webinar discussion on the updates and enhancements.


  • Monday 1/12 @ 3pm CST
  • Thursday 1/15 @10am CST
  • Thursday 1/22 @10am CST
  • Thursday 1/29 @3pm CST

Audio Conference
Dial In – 888-535-6454
Meeting Access Code – 8123535

Web Meeting:
Meeting ID – 8885356454
Participation Code – 8123535

Updated Client Profile Forms
In order to streamline our suitability supervision process for Index Annuity products and to incorporate feedback from the field, we have modified and enhanced the Client Profile Form to improve suitability review and help reduce the number of Not In Good Order (NIGO) cases attributed to incomplete Client Profile Forms.

The new Client Profile Form will be available on January 26, 2015. We will continue to accept the previous version of the Client Profile Form through March 27, 2015. Thereafter, the updated version of the form will be required with all New Business submissions.


Important Notes: Index annuities are not a direct investment in the stock market. They are long-term insurance products with guarantees backed by the claims-paying ability of the issuing insurance company. They provide the potential for interest to be credited based in part on the performance of the specified index, without the risk of loss of premium due to market downturns or fluctuations. Index annuities may not be suitable or appropriate for all clients.

The ML Strategic Balanced IndexTM embeds an annual index cost in the calculations of the change in Index Value over the Index Term. This “embedded index cost” will reduce any positive change in Index Value over the Index Term that would have otherwise have been used in the calculation of index interest, and funds certain operational and licensing costs for the index. It is not a fee paid by you or received by the Company. The Company’s licensing relationship with BofA Merrill Lynch for use of the ML Strategic Balanced IndexTM and for use of certain BofA Merrill Lynch service marks includes the Company’s purchase of financial instruments for purposes of meeting its interest crediting obligations. Some portion of those instruments will, or may be, purchased from BofA Merrill Lynch.

Merrill Lynch, Pierce, Fenner & Smith Incorporated and its affiliates (“BofA Merrill Lynch”) indices and related information, the name “BofA Merrill Lynch”, and related trademarks, are intellectual property licensed from BofA Merrill Lynch, and may not be copied, used, or distributed without BofA Merrill Lynch’™s prior written approval. The products of licensee American General Life Insurance Company have not been passed on as to their legality or suitability, and are not regulated, issued, endorsed, sold, guaranteed, or promoted by BofA Merrill Lynch. BOFA MERRILL LYNCH MAKES NO WARRANTIES AND BEARS NO LIABILITY WITH RESPECT TO ANY INDEX, ANY RELATED INFORMATION, ITS TRADEMARKS, OR THE PRODUCT(S) (INCLUDING WITHOUT LIMITATION, ITS QUALITY, ACCURACY, SUITABILITY AND/OR COMPLETENESS).

The ML Strategic Balanced IndexTM (the “Index”) is the property of Merrill Lynch, Pierce, Fenner & Smith Incorporated, which has contracted with S&P Opco, LLC (a subsidiary of S&P Dow Jones Indices LLC) to calculate and maintain the Index. The Index is not sponsored by S&P Dow Jones Indices or its affiliates or its third party licensors (collectively, “S&P Dow Jones Indices”). S&P Dow Jones Indices will not be liable for any errors or omissions in calculating the Index. “Calculated by S&P Dow Jones Indices” and the related stylized mark(s) are service marks of S&P Dow Jones Indices and have been licensed for use by Merrill Lynch, Pierce, Fenner & Smith Incorporated.

Index Annuities issued by American General Life Insurance Company (AGL), 2727-A Allen Parkway, Houston, Texas 77019.

AGL is a member of the American International Group, Inc. (AIG) family of financial services companies. The underwriting risks, financial and contractual obligations and support functions associated with the annuities issued by AGL are its responsibility. Guarantees are subject to the claims-paying ability of AGL. AGL does not solicit business in the state of New York. Annuities and riders may vary by state and are not available in all states.

May Lose Value · No Bank or Credit Union Guarantee
Not a Deposit · Not Insured by any Federal Government Agency

© American International Group, Inc. All rights reserved.

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