Regulators advanced a consumer alert and insurer and producer bulletin that strives to curb the use of senior designations backed with lax educational requirements.
The action occurred during a discussion of the Life Insurance “A” Committee of the National Association of Insurance Commissioners, Kansas City, Mo. The bulletin will be on the plenary agenda for the summer NAIC meeting for possible full adoption.
And, separately, the “A” committee also has begun to develop an actuarial guideline that would establish requirements for minimum cash surrender values for term life insurance products providing return of premium intermediate endowment benefits and other similar benefits.
The consumer alert warns seniors about “free-lunch seminars” which offer seniors a free meal and which are often tied to a product sales pitch. The alert also advises senior consumers to question the credentials of experts who hold themselves out to be senior advisors.
The insurer and producer bulletin applies to the marketing and sales of fixed and variable life insurance and annuities and requires the proper use of designations by producers. The bulletin also notes that insurance companies are responsible for the advertising of their products whether by the company or producer, and designations are part of such advertisements.
And, it states that “any producer who advertises himself or herself as holding special status due to training or advanced education must provide documentation of expertise, such as a course syllabus and proof of successful completion of the course of study or training.”