Is this Really Legal??

[DHK]

My beef with this is it makes good agents look bad, and when you meet with prospects and see some crazy rate like that will wonder why my rates can't even come close to that, doesn't help to start off on the right foot.

Only if you LET it make you "look bad".

Always offer to take a look at any offer like that... because there is ALWAYS more to the story... such as the rating of the company.

You started a thread about EquiTrust a while back. And if they weren't a B-rated carrier, I'd be all over that product. I can't find it right for myself, so I can't recommend it to others. But other companies with lower than A- ratings will have specials in order to attract more dollars. But is it worth the risk for them and you?

Talk about how you do your "due diligence". You're always happy to look at anything, but that doesn't mean you feel right about offering "everything under the sun" to your clients.

 

[CALTCAgent]

I don't know if this is legal or not. I did know another agent that was charged by the district attorney and a special consumer protection unit with deceptive annuity marketing.

One of the things listed was 13% first year returns. Not sure what wasn't accurate, as long as they noted first year only. There was other misleading stuff, according to them.

The fines listed were about $40K.

I noticed the agent has since filed for bankrupty and no longer has an insurance license.

 

[Charpress]

I had a product that returned around 19% last year, but the total return over the past 9 years is about 6.5%.

Would I start talking about having a product that returns 19%? Umm.. -no.

Another product with a first year bonus returns 15% the first year with the guaranteed rollup. Would I advertise a 15% annuity? No, again.

Featuring either claim, although true, would be misleading advertising -no way around it.

 

[StanTheInsMan]

It sounds like basic misleding advertising. A variable annuity can make 17-20% + in a given year, but it can also loose money since it is invested in the market. They have other guarantees like death benefit riders and income benefit riders, but no guarantee of principal for the most part.