Lead generation is a perennial concern for regulators and compliance officials.
The problem is, the allure of new business often leads advisors (and marketing companies) to use hype and fear to attract prospects instead of using legitimate information.
To protect consumers, the Maine Bureau of Insurance recently published a bulletin with guidance on the proper use of lead cards.
The bulletin makes several key points that apply to all advisors, not just those in Maine:
- First, advisors should remember that lead cards are a form of advertising and thus must never include untrue, deceptive, or misleading information.
- Second, mailers must always disclose they are an insurance solicitation and that an agent or insurer will be following up.
- Third, the use tactics involving fear, threat, or undue pressure is forbidden in lead generation mailers, especially those promoting Medicare supplemental policies.