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AIG Life & Retirement — an arm of American International Group Inc. — has started using the Legg Mason Quality Dividend Index .

The index, which is designed for use with AIG index annuities, reflects the performance of high-quality companies that have a strong record of paying dividends on common stock.

(Related: Prudential Introduces Its First Indexed Variable Annuity: Annuity Matters)

AIG will start by using the index with the Power Series of Index Annuities products, what are issued by AIG’s American General Life Insurance Company subsidiary.

QS Investors LLC, a Legg Mason Inc. subsidiary, is in charge of developing and administering the index.

AIG will distribute the annuities that include the index through independent broker-dealers, and through banks and other financial institutions, the company says.

In other annuity news, Alphastar Capital Management says it will give registered advisors direct access to annuities by using the Envestnet Insurance Exchange.

Alphastar has a staff of about 80 licensed advisors and 3,937 client relationships, according to Investor.com.

Envestnet Inc. has worked to set up its exchange using the Fiduciary Exchange LLC, or FIDx. FIDx is the collection of computers, computer networks and other systems that makes the insurance exchange run.

— Read Sales of Index-Linked Variable Annuities Shine Againon ThinkAdvisor.

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