It’s not clear when the line between insurance agent and investment advisor began to blur, but it’s sometimes tough to tell the difference with insurance agents now offering products that look, sound and act like investment products. An agent crosses the line the moment they give an opinion or advice about the past performance of the stock market, S&P 500 index, or mutual funds for compensation. Arkansas has started imposing fines on agents who break the law, even doubling the fine if the client is 65 or older. Other states have shown interest in following Arkansas’ lead. Regulators are pushing for the day when insurance agents will be required to hold a securities license, which will provide a uniform code of conduct.

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