Did you know that using fraudulent, misleading or fictitious senior-specific designations is a direct violation of advertising regulations and a direct violation of fiduciary standards? These standards state that no misleading statements can be used in business practices.
The purpose of this regulation is to protect consumers from deception as it pertains to senior-specific certifications and designations during the solicitation, sale or purchase of, or advice made in connection with a life insurance or annuity product.
This means that it is unethical of an insurance producer to use a specific designation that indicates or implies that he/she has special certification or training in advising or servicing seniors.
The prohibited use of these designations includes, but is not limited to:
- Use of certification of professional designation by an insurance producer who has not actually earned or is otherwise ineligible to use such designation.
- Use of a nonexistent or self-conferred certification or professional designation.
- Use of a certification or professional designation that implies a level of occupational qualifications obtained through training, education or experience that the insurance producer using the certification or designation does not have.
- Use of certification or professional designation that was not obtained from a certifying or designating organization.
- Use of the words expert or specialist when additional certification has not been obtained or earned.
To protect yourself, it’s important to understand the requirements around the use of senior-specific designations. Visit NAIC’s published regulation by downloading the full report at http://www.naic.org/store/free/MDL-278.pdf.
This information is intended for Financial Professionals who are insurance licensed only. If you are securities licensed please contact your Broker Dealer for their requirements.
These educational pieces are intended to be informative and provide generalized guidance. They should not be construed as legal advice or provide protection against compliance violations brought on by a consumer or state insurance commission. It is the sole responsibility of the financial professional to seek compliance or legal direction specific to their individual situation. These pieces should be used as a means to raise awareness and evaluate business practices.
For Financial Professional use only, not for use with the general public. #17-3046-080218