The National Association of Insurance Commissioners might want to consider creating a model that would govern use of producer credentials.
Julie McPeak, chair of the Life Insurance and Annuities Committee at the NAIC, Kansas City, and executive director of the Kentucky Office of Insurance, made that suggestion recently during a committee conference call.
The U.S. Securities and Exchange Commission, state regulators and others have talked about allegations of deceptive use of credentials in connection with investigations of “free lunch seminars” and other marketing efforts.
Sen. Herb Kohl, D-Wis., chairman of the Senate Special Committee on Aging, sent the NAIC a letter Oct. 3 urging state insurance regulators to adopt and enforce standards for financial advisors who work with older consumers.
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During the life committee conference call, McPeak noted that some designations are easily obtained and can be bought for as little as $149.
Existing state laws do prohibit use of fake designations, but the laws do not help prevent use of genuine designations that offer little value to the consumer, McPeak said.