PRI
#Sure.
One of the things I think we do best at Primerica is we have a huge audience and we communicate with them well and have a number of communication channels.
A lot of our cutting edge technology is decked against that.
We've certainly used it to regularly communicate with our sales force overall, but also specifically with senior leadership and groups of top producers.
So, we've got a very robust communication plan that's ongoing, both at the broadcast level, as well as a more targeted level.
We've not only communicated to our representatives, we've asked them for their feedback, their reaction to certain ideas and certain directions, so it's been a very interactive process, which I think has been very effective in making sure that we don't create a distraction.
There is a potential for any change not only to disrupt as you adapt to it, but cause a distraction that bleeds over into other areas of our business.
I think, as you can tell from our production and our results we just talked about, we limited distractions significantly, and we're very focused on growing our business.
Even the headwinds that we see in our ISP business, I believe as we stated, our market viability in Canadian exchange rate and limited effect of the DOL rule at this point.
I think that's because of our exceptional efforts to community clearly and regularly and we have had good response from our sales force in both the communications itself, as well as involving them in the process and in talking to them about the potential changes that could be out on the horizon.
So, I feel that if we're going to do something that's not perfect, we're going to over-communicate rather than under-communicate, and that's the approach that we've taken and it's been well received.
Very good.
That's an annualized rate, correct.
We said 17% to 18%, yeah.
No, because that's actually incorporate in other.
It really is just a function of just the profitability that's emerging on this business.
The level of production, obviously we do have fixed costs, so the more we can produce with our same fixed costs, the better margin and overall performance of the book of business.
Mm-hmm.
Yeah.
Obviously, the whole liability issue under BICE was and continues to be one of the majors concerns.
So, as the rule became final, one of the things we were looking for was to see how that might have changed.
In the final rule you do see things that impact legal liability both directly and indirectly.
I mentioned some, like lessening the disclosure requirements makes it easier to meet the disclosure requirements, therefore lowers the liability.
Some of the warranties were caveated regarding materiality in the final rule.
The final rule allows firms to disclaim punitive damages.
It removed the representative from being a signatory, which is very practical in that representatives change on accounts over the life of accounts, so it's hard to sign a new contract as the reps change, but also that, as a process, I think is moving rep to rep could also increase liability.
So, there are a number of specifics in the rule that we are currently evaluating to try to determine how much change was created in that legal liability.
But, we do believe, overall, it moved in a positive direction.
