Life insurance agent was involved in a ponzi scheme. need options

[DHK]

Check the agents background at their state's department of insurance.

Not a guarantee against being conned into a ponzi scheme. That's like saying to check the IAPD to make sure that Bernie Madoff was really a fiduciary investment advisor.

All it means is that the licensed agent is licensed to sell insurance.

 

[Robert Barney]

Insurance regulators don't tend to take preventative action about anything, they play the role of a coroner after the murder has taken place. And even then, expect the perp to get a slap on the wrist.

There is no substitute for a healthy sense of skepticism when something sounds to good to be true.

 

[scagnt83]

Insurance regulators don't tend to take preventative action about anything, they play the role of a coroner after the murder has taken place. And even then, expect the perp to get a slap on the wrist.

There is no substitute for a healthy sense of skepticism when something sounds to good to be true.

I get what your saying and do agree to a large extent. But you left out the front end.

They regulate heavily when it comes to product approval. But just like a hammer can be misused or used abusively, so can insurance products. And that is where they really fall short. Your analogy is spot on, DOI regulators, for the most part, perform autopsies. And punishments often do not fit the damages inflicted.

In SC, there is no way for an insurance agent to report violations made by other SC licensed agents. Any complaint must be made by a client. If an agent knows of wrongdoing and they call the DOI they are told there is nothing they can do.....

 

[walthamny]

I don't believe there is any state where the Division of Insurance would take seriously fraud claims made by other insurance agents. FINRA also does not care about fraud if the source is another financial advisor. This is an industry wide problem.

I know a bad apple here in Boston but the only way I could report him would be to become his client and let him screw me first.