I heard a guy on the radio last weekend (paid advertisement) saying that he's retired and not trying to sell anything, but when I listened to his show it was very clear that he's pushing index annuities. He has an 800 number and a business office and he says that he wants to meet with people to give them free financial direction. I suspect that he's not having them sign any annuity contracts at that first meeting. So I guess technically he doesn't have to make any disclosures at that point in time? Maybe not until the 2nd meeting. What are the rules regarding disclosures to potential clients in the US?
Disclosures to clients when meeting with them
- Thread starter MartinJ
- Start date
- 11,457
FINRA and SEC requires the most disclosure language (reading stuff really fast at the end of a commercial). Insurance-only agents/agencies usually don't.
Now, you're in California, as am I. For in-home meetings, there is a required disclosure for people who are age 65 and over. In addition, our CA license number should be on every marketing piece we produce.
It gets a lot worse for people who are only marketing insurance and then try to sell securities services too. Don't hide securities licensing.
https://insurance-forums.com/commun...nagement-accused-of-fraud.75569/#post-1005778
Now, you're in California, as am I. For in-home meetings, there is a required disclosure for people who are age 65 and over. In addition, our CA license number should be on every marketing piece we produce.
It gets a lot worse for people who are only marketing insurance and then try to sell securities services too. Don't hide securities licensing.
https://insurance-forums.com/commun...nagement-accused-of-fraud.75569/#post-1005778
- Thread starter
- #3
So if someone is only selling index annuities and nothing else can they legally say "I won't try to sell you anything, I'm retired, etc" before meeting with them or consulting with them over the phone or by email? The only disclaimer I heard at the end was basically saying that it was a paid for by [the name of his insurance company].
- 11,457
He's not selling FIAs in the advertisement. He's selling a consultation.
If he's selling a product, then he would need to disclose the product name, current rate, expiration of the current rate, policy form numbers, and issuing company. The only other disclosure may be "Insurance and annuity guarantees are backed by the financial strength and claims-paying ability of the issuing company".
That would be stupid. There isn't a single product that's right for each and every person. Since that's not the case, and the ad was (per your words) sponsored by the insurance company itself, that's all he needs to say.
Can you say "I'm not selling anything"? Sure. Hear it all the time on the radio. There's a mortgage company that advertises "There's no selling here. Either we can save you money or we can't." Either a FIA fits in their situation, or it doesn't. Either they want what a FIA does, or they don't. It's simple.
It's about his STYLE. Don't confuse style with licensing. Just because he's only licensed to sell FIAs doesn't mean that every licensed person thinks that everybody should have one.
Why are you so concerned about this? Are you afraid he's guilty of "false advertising" and people should be alerted that "this guy is only trying to sell you an annuity" as though it's a criminal act?
If he's selling a product, then he would need to disclose the product name, current rate, expiration of the current rate, policy form numbers, and issuing company. The only other disclosure may be "Insurance and annuity guarantees are backed by the financial strength and claims-paying ability of the issuing company".
That would be stupid. There isn't a single product that's right for each and every person. Since that's not the case, and the ad was (per your words) sponsored by the insurance company itself, that's all he needs to say.
Can you say "I'm not selling anything"? Sure. Hear it all the time on the radio. There's a mortgage company that advertises "There's no selling here. Either we can save you money or we can't." Either a FIA fits in their situation, or it doesn't. Either they want what a FIA does, or they don't. It's simple.
It's about his STYLE. Don't confuse style with licensing. Just because he's only licensed to sell FIAs doesn't mean that every licensed person thinks that everybody should have one.
Why are you so concerned about this? Are you afraid he's guilty of "false advertising" and people should be alerted that "this guy is only trying to sell you an annuity" as though it's a criminal act?
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There are plenty of tv ads saying call our toll free line for free information on blablabla. Is it really free information, of course not. There are plenty of companies offering free trips to Florida you just have to attend a free information session. You are under no obligation to buy anything. Now if this is all legal, why can't Fixed Index Annuity guy say, I want to give you free information, free financial check-up and so on. It happens all the time.
