Don't use rumors to drive replacement sales

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

In addition, Iowa regulations prohibit “insurers and producers from employing any method of marketing or tactic which uses undue pressure, force, fright, threat, whether explicit or implied, to solicit the purchase of insurance.”

The Iowa bulletin also reminds producers of state replacement rules, which require them to have reasonable grounds for recommending a replacement and to make sure the replacing product is suitable for the client.