Enough Already! Abort The Suitability Regulation Monster!

Enough Already! Abort The Suitability Regulation Monster!

To The Editor:

In his March 11 article “Insurance Suitability Regulation is at the Crossroads,” Robert Elconin states that, “In some respects, it would be a shame if NAIC’s work on suitability proved for naught.” May I respectfully disagree? I contend it will be a shame if this regulatory monstrosity takes effect.

As a professional insurance agent, I have dedicated much of my career toward more professional education and self-regulation. I earned the CLU designation in 1973, and later added the ChFC and LUTCF designations. I seldom make a sale that I don’t think about suitability. To me, it’s an ethic. It should not be a regulation.

All the proposed suitability regulation is going to accomplish is a lot more needless perfunctory paperwork, and we will have to put up with some 90-day wonder in the home office examining our sales process. Excuse me, but the last thing I need is to have some “oversight” person, who knows a lot less than I, in my face about the suitability of the product sold.

If this regulation comes to pass we will be questioned about why we sold any form of permanent insurance when we could have sold a lower premium term policy. We will be on the hot seat if we don’t sell the most competitive product, or God forbid, we place something in a company with less than an “A” Best’s rating, or some other artificial standard.

We already have the critics in our face because of the sale of variable annuities, when (presumably) we should have directed the client to no-load mutual funds.