FG to suspend Medicaid SPIA sales

Fidelity & Guaranty Life announced today that they will be suspending Medicaid SPIA sales on new business for the FG Immediate-Senior Safeguard product, as well as suspending the deferred annuity Medicaid settlement option on their fixed and fixed indexed annuities.

Any "Medicaid Friendly" policies with an effective date prior to April 1, 2012 will continue to have the Medicaid settlement option available. Fidelity & Guaranty has designated the following products as being "Medicaid Friendly":

• FG Guarantee Platinum & Plus Fixed Annuity
• FG Escalator 6
• FG Safety 4 & 7

Business Transition Rules for Medicaid SPIA sales

• Safeguard – cash and transfers must be received in good order by 2/29/2012
• Medicaid SPIA Settlement Option – will be available if policies are issued before 4/1/2012 and it is not available if issued on or after 4/1/2012