Ethics question

[goillini52]

So how are the policies going to get issued? You have to be licensed and appointed with each company in each state you are selling. That, or he's operating under the agency authority and the principal agent is the one who is licensed.



He's using ACTUAL paper? There are e-applications where it is possible to get an electronic signature without having been in the office...



Insurance companies aren't dumb. Once they find the trend, they'll see how he's been operating and for how long.



The person you contact is your company's HR department FIRST... and then you contact an internal "whistle-blower" hotline and/or other internal compliance department. Tell them what you've seen, but you must maintain your anonymity.

Realizing all these things, once the obvious pattern is realized, it won't be hard for ANYONE with half a brain to figure out what this guy has been doing and terminate him FOR CAUSE... and possibly the agent for sanctioning it.

He could get around this by lying and forging the policyowner's signature on a Non-Resident Verification Form, which says the person took the policy out in the agents "state of applicaton. The policyowner can't have come to the agent's resident state just to purchase the policy.

I'm not sure how many companies allow this. Here's Sentinel Security's app and the form's on page 11 of the PDF.

https://sslco.admin-portal.org/PortalStorageLive/ProductForms/SS/NVAPPPACK-OT 040616_W.pdf

 

[DHK]

He could get around this by lying and forging the policyowner's signature on a Non-Resident Verification Form, which says the person took the policy out in the agents "state of applicaton. The policyowner can't have come to the agent's resident state just to purchase the policy.

I would imagine that you could do this on a "one-off" situation and get away with it - perhaps a handful of times.

But I'm going to assume a dozen or so transactions... that would be "out of the ordinary" for the kind of agency they are... it should be raising some eyebrows somewhere.

Even Wells Fargo should be able to figure it out.

 

[Life Hawk]

Even Wells Fargo should be able to figure it out.

But the question is, "Would they do anything about it?"

Wells Fargo

 

[Markthebroker]

Unless you are playing dumb, TJ Swan, you know this is a problem that should be dealt with.

 

[myinsurebiz]

Hello All,

I'm pretty new to insurance and brand new to the forum. This is a great resource!

I have a scenario I need feedback on: a top selling Life producer is quoting and selling policies to people in states he isn't licensed in. He is signing their name to paperwork in the office and completing affidavits stating that the out of state client was in his office when the policy was sold, which is not the case. I'm pretty sure his broker knows but looks the other way because of the obvious upside of all the sales. Is this a major problem, and should someone blow the whistle? If yes, how?

Snitches get Stiches and may wind up in Ditches . . .

 

[Newby]

Hello All,

I'm pretty new to insurance and brand new to the forum. This is a great resource!

I have a scenario I need feedback on: a top selling Life producer is quoting and selling policies to people in states he isn't licensed in. He is signing their name to paperwork in the office and completing affidavits stating that the out of state client was in his office when the policy was sold, which is not the case. I'm pretty sure his broker knows but looks the other way because of the obvious upside of all the sales. Is this a major problem, and should someone blow the whistle? If yes, how?

He probably doesn’t even realize how easy and cheap it is to get non resident licenses. But yes it’s a huge violation and he will likely lose his license if caught.

 

[TJ Swan]

Note: This actually isn't an ethics question. This was a question about insurance laws. According to your post, there are way too many LAWS being broken here.

Point taken.

 

[TJ Swan]

Unless you are playing dumb, TJ Swan, you know this is a problem that should be dealt with.

You are correct, I already knew it was not a good practice. I brought the issue here to gauge how serious an issue people in the industry considered it to be, and to get advice on what I should do.

 

[goillini52]

You are correct, I already knew it was not a good practice. I brought the issue here to gauge how serious an issue people in the industry considered it to be, and to get advice on what I should do.

So, what you going to do?

 

[TJ Swan]

So, what you going to do?

I'm going to report him. Not my style typically, but beyond the shenanigans this guy truly deserves it. He is constantly scrutinizing other people's books of business, always looking for something "sketchy" or "unfair" to bring to the attention of the agent. He has made trouble for a lot of good producers and support staff, so I have no problem helping his karma along.