Hey guys I have a question. I am a newly independent Agent. What can I do about making sure I am complying with every rule my state, Texas, has in place? I'm not doing anything I didn't learn at New York Life. Is this something I can use my IMO for? I have not asked them that yet. Or should I consult with an attorney from time to time? One other question. In Texas, can I call myself a broker? Or are there special rules that would actually make me a broker. Thanks guys
Compliance
- Thread starter A.Lopez
- Start date
- 11,275
Yes, use your IMO.
Also, if you create literature, anything with a % or a rate quote should be sent to the particular insurance company for compliance approval. In general, I avoid quoting %'s or rates at anytime. If you create literature about a product with specifics, send it to that insurance company for approval. (I think Glenn Neasham would've avoided a lot of trouble if he had ALL of his advertising approved in advance. I recall somewhere that he had billboards guaranteeing 12% on annuities. While this was a few years ago, I believe the rate guarantee was also related to his other water business too.)
The judgment on this is generally: "Would I have a hard time defending that piece if it was used as evidence against me in a court of law?"
Now, I don't know about Texas specifically, so I'll talk a bit about California. In California, you are supposed to list your license number on just about everything in a readable size font.
Also, California has laws to protect seniors, so I send out a "senior notice" in advance that one of my companies have... and it outlines the CA DOI phone number, website, lists my name, license number, phone number, address, etc. They are supposed to get it at least 24 hours in advance... or at the time of your appointment.
Aside from "selling to seniors" concerns, my state has issues with various "senior designations" that you are or not allowed to use.
I don't think you need an attorney to consult. Just keep checking with insurance companies with things that pertain to their products and know your state's laws... and you'll be fine. Your IMO and the insurance companies should help you with this.
Can you call yourself a broker? Check the TX DOI website. Brokers represent their clients to insurance companies, and that is different than being an agent for multiple companies, so double check on that.
Another good resource to check would be CE courses for your state. Annuity, long-term care, and ethics CE PDF files should help you with all of this stuff.
Also, if you create literature, anything with a % or a rate quote should be sent to the particular insurance company for compliance approval. In general, I avoid quoting %'s or rates at anytime. If you create literature about a product with specifics, send it to that insurance company for approval. (I think Glenn Neasham would've avoided a lot of trouble if he had ALL of his advertising approved in advance. I recall somewhere that he had billboards guaranteeing 12% on annuities. While this was a few years ago, I believe the rate guarantee was also related to his other water business too.)
The judgment on this is generally: "Would I have a hard time defending that piece if it was used as evidence against me in a court of law?"
Now, I don't know about Texas specifically, so I'll talk a bit about California. In California, you are supposed to list your license number on just about everything in a readable size font.
Also, California has laws to protect seniors, so I send out a "senior notice" in advance that one of my companies have... and it outlines the CA DOI phone number, website, lists my name, license number, phone number, address, etc. They are supposed to get it at least 24 hours in advance... or at the time of your appointment.
Aside from "selling to seniors" concerns, my state has issues with various "senior designations" that you are or not allowed to use.
I don't think you need an attorney to consult. Just keep checking with insurance companies with things that pertain to their products and know your state's laws... and you'll be fine. Your IMO and the insurance companies should help you with this.
Can you call yourself a broker? Check the TX DOI website. Brokers represent their clients to insurance companies, and that is different than being an agent for multiple companies, so double check on that.
Another good resource to check would be CE courses for your state. Annuity, long-term care, and ethics CE PDF files should help you with all of this stuff.
- Thread starter
- #3
Thanks for the information. TDOI is very vague on this issue. Perhaps I will just need to call them in the morning. However, the only time "Broker" is referenced is with regards to a reinsurance license and life settlements. I could not find a single distinction between an Independent Agent and Broker. I always figured I would be a Broker. Being that I am appointed through the IMO and I act on behalf of the client. Rather than having a product in mind I go through the process of finding out what is best for the client, investigate the options, then recommend a specific policy.
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