The new “Model Regulation on the Use of Senior-Specific Certifications and Professional Designations in the Sale of Life Insurance and Annuities” establishes standards for the use of senior-specific certifications and professional designations in the sale or solicitation of life insurance and annuities.
“Especially in these trying economic times, Americans should be able to trust the people who handle their money,” said NAIC President and Kansas Insurance Commissioner Sandy Praeger. “State insurance regulators will take swift action against those who would mislead consumers with titles that imply special expertise that doesn’t really exist.”
Individuals selling these products, particularly to seniors, often boast designations and credentials that use terms such as “certified,” “accredited,” “retirement planner,” “senior advisor” or “senior consultant.” The NAIC model regulation prohibits the use of such senior-specific certifications or professional designations in advising or servicing seniors in the purchase of life insurance and annuities.
The NAIC’s adoption of this model regulation is the latest in a series of activities state insurance regulators have taken to protect seniors. A recent model bulletin cautions insurers and producers against the improper use of senior designations, stating:
* Producers who misrepresent their level of expertise in marketing and sales activities will be subject to penalties under state law.
* Insurers that allow their producers to use misleading designations will also be subject to penalty under state law.
And, a recent Consumer Alert offers these tips:
* Question the credentials of “experts.”
* Beware of “free lunch” investment seminars.
* Ask yourself: Does this product make sense for me?
* Never make a final decision at a seminar.
* Report scams.
* Contact your state insurance department for more information.
“Many seniors have worked hard to accumulate a lifetime of savings. Since older adults are the fastest growing segment of investors, they have become the focus of many financial services firms' marketing and sales activities,” said Wisconsin Insurance Commissioner Sean Dilweg, who is chair of the NAIC Senior Issues Task Force. “This proposal is vital in providing confidence in the expertise surrounding the sales of these insurance products to our senior consumers.”