Close Close
Sign In
Newsletters
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
Podcast Center Video Center Webcasts Resource Center Events
About ThinkAdvisor Contact Us Advertise With Us Asset & Logo Licensing Sitemap Terms of Service Privacy Policy Copyright © 2024 ALM Global, LLC. All Rights Reserved.
ThinkAdvisor

Life Health > Life Insurance

Iowa: Don't Scare Holders Into Selling

By Allison Bell

X
Your article was successfully shared with the contacts you provided.

Insurers should make sure that current and former producers refrain from using “rumors” about other insurers’ finances to drive life and annuity replacement sales.

Iowa Insurance Commissioner Susan Voss delivers that warning in Bulletin 09-04.

Voss has addressed the bulletin to all insurers and licensed producers in Iowa.

Iowa insurance laws “expressly prohibit insurers and insurance producers from making statements that disparage other insurers or are derogatory to the financial condition of any insurer,” Voss writes in the bulletin. “Such practices are considered unfair or deceptive acts or practices.”

Insurers and producers also should remember Iowa rules regarding the replacement of an existing policy or contract via issuance of a new policy or via a financed purchase, Voss writes.

The Iowa Insurance Division “expects insurance carriers to carefully monitor all replacement activity by its producers and ex-producers,” Voss writes. “Insurers shall report to the division any trend in activity that indicates that 2009 replacements or disbursements are increasing in comparison to 2008 activity.”

When producers and insurers replace a life policy or annuity contract, they should document the reasons that they believe the replacement is suitable, Voss writes.

“The division will review all reports of violations of Iowa insurance laws and regulations and will conduct market conduct investigations against insurers and insurance producers suspected of misconduct,” Voss warns.

A copy of the bulletin is available here.

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.