Association of Ohio

AOLI

Life Insurance Compani:

Association of Ohio

Life Insurance Companies
100 South Third Street
Columbus, Ohio 43215-4291
(614) 227-4899
www@aolic.com

Logislative Counsel:
Bricker & Eckler LLP

Kurtis A. Tunnell
(614) 227-8837
ktunnell@bricker.com
Gregory J. Lestini
(614) 227-4893
glestini@bricker.com

Marjorie J. Yano.

(614) 227-8961
myano@bricker.com
Anthem Life Insurance Co.
Columbus, Ohio

The Cincinnati Life Insurance Co.

Cincinnati, Ohio

Genworth Financial, Inc.

Richmond, Vis

Grange Life Insurance Co.

Columbus, Ohio

Great American Financial Resources, Inc.

Cincinnati, Ohio

The Honorable Thomas E. Perez
United States Department of Labor
200 Constitution Ave., NW
Washington, D.C. 20210

July 21, 2015
Dear Secretary Perez,

On behalf of the Association of Ohio Life Insurance Companies
(“AOLIC”), we write to share our concerns about certain critical elements of
the proposed fiduciary rule proposed by the U.S. Department of Labor
(“Department”). The members of AOLIC agree that the interests of the client
should always be put before the financial interests of a retirement advisor.
Accordingly, we are concerned that, as written, the proposed rule will limit
the ability of financial professionals and agents to provide important
investment support and information to their clients.

The Association of Ohio Life Insurance Companies is a statewide
trade association representing thirteen of the largest life insurance companies
in the world, both domestic and foreign. Our companies provide life,
annuities, and limited health coverage to millions of Ohioans across the state.

With Americans living longer than ever before, the members of
AOLIC provide vital guidance, information and support to ensure their clients
and policyholders are financially prepared for retirement. We work with
businesses and individuals to provide retirement annuities and other products
that offer guaranteed lifetime income protection and supplement social
security benefits. Additional benefits we provide to our policyholders include
education about retirement planning and asset allocation, as well as
administrative and investment support.

As currently drafted, we are concerned that certain elements of the
proposed fiduciary rule and the proposed new and revised prohibited
transaction exemptions will severely limit the support we are able to provide

MEMBER COMPANIES,

‘The Guardian Life Insurance Co. of America Ohio National Life Insurance Co.

New York, New York Cincinnati, Ohio
MetLife ‘The Prudential Insurance Co. of America
New York, New York Newark, New Jersey

‘Western Reserve Life Assurance Co. of Ohio
St. Petersburg, Florida

Motorists Life Insurance Co.
Columbus, Ohio

Nationwide Financial Services
Columbus, Ohio

‘Western & Southern Financial Group
Cincinnati, Ohio

‘New York Life Insurance Co.
New York, New York


AOLIC

| Lite Insurance Companics |

our policyholders and will prevent us from offering certain products and services that could help
Americans prepare for a more financially secure retirement.

Specifically, the “best interest contract exemption” or “BICE” appears to create a
preference against commission-based compensation. Many plans for small and mid-sized
business and personal accounts are now offered through a commission-based system. This is
gencrally a more affordable option for these clients, and transitioning to a fee-based
compensation system will leave these individuals and businesses without access to products and
services.

In addition, the rule includes a broad definition of “fiduciary” to include those who make
recommendations to individuals or plan sponsors regarding investments, annuities, and other
insurance contracts and rollovers and distributions. Our members provide education materials
and explanation of benefits information and could face increased liability if this provision is
triggered. Policyholders use the information provided by AOLIC members to learn more about
plan benefits and to make educated decisions about their investment opportunities. Accordingly,
our independent agents will be hesitant to have extensive and informed conversations with their
clients about important retirement and financial planning tools. Eliminating these opportunities
for education will leave policyholders without the information they need to make the best
investment and retirement decisions.

We agree with the Department’s belief that financial professionals should always place
the client’s best interests above their own. As written, we believe this rule and the proposed
exemptions will detrimentally impact our clients and policyholders, reducing access to valuable
products and to the support needed to make informed financial decisions — having the adverse
impact intended by the Department.

In 2009, the Treasury Department issued three initiatives to encourage Americans to
invest and save for retirement, recognizing the importance of guaranteed lifetime income. The
members of AOLIC work daily to ensure our clients receive reliable information about their
retirement options. We encourage the Department to modify this proposed rule, to ensure
consumers are still able to receive these important education and administrative services. We are
happy to make ourselves or our members available to you to discuss these issues further.

Sincerely,
/
hint a Ui
Kurtis A. Tunnell Gregoty J Lestini Marjorie J. vahh.

9161358v5 2


AOLIC

| Life Insurance Companies |

cc: The Honorable Steve Chabot
The Honorable Brad Wenstrup
The Honorable Joyce Beatty
The Honorable Jim Jordan
The Honorable Robert Latta
The Honorable Bill Johnson
The Honorable Bob Gibbs
The Honorable John Boehner
The Honorable Marcy Kaptur
The Honorable Michael Turner
The Honorable Marcia Fudge
The Honorable Pat Tiberi
The Honorable Tim Ryan
The Honorable David Joyce
The Honorable Steve Stivers
The Honorable Jim Renacci
The Honorable Sherrod Brown
The Honorable Rob Portman

9161358v5,