Source of Funds

[Indy007]

What are your thoughts on this? According to the link I posted below, the Iowa Insurance Division says I'm fine as long as not doing things in the prohibited activities section. I'm a life/health only agent, and have no desire to obtain my 6/63, 7 ,65 or 66 registrations as I have no intention of selling securities. I do sell annuities, and this is the only issue that worries me with what I do. I do not provide investment advice, but do discuss risk tolerance, safety of principle, guarantees, income and other things that could be "construed" as investment advice if a complaint ever arose down the road. Somehow I feel it would at a minimum cost many thousands defending myself, and possibly be sanctioned with fines and/or licensing issues if a complaint ever happened. (Guilty until proven innocent)

I think a well drafted CYA letter is a great thing to do. I might just have my attorney interpret it, and draft a CYA letter for me. Anybody have one you use, if so I'd be interested in reading it.


http://www.iid.state.ia.us/sites/de...e_insurance_licensed_persons_june_2_62714.pdf

 

[DHK]

http://www.insurance-forums.net/forum/annuities-forum/webinar-source-funds-issue-nov-7th-t59105.html

 

[Indy007]

Thanks DHK, when I click on the link it isn't going to the video. Maybe because I'm on an iPad, will have to try to watch again tomorrow. What was the gist if what was said?

 

[DHK]

The gist was that this was still a nebulous issue with nearly all states. I think it was Iowa was the one that made it very clear in a way that protected fixed index annuity producers.

However, creating your own CYA letters also backfired because "why would you need a CYA letter unless you needed to CYA?"

It's a good webinar with a lot of good source material to reference.

 

[Indy007]

Still can't view the video. Any others with input on this? I see it as one of the biggest risks as a life agent who does any volume in annuities.

 

[DHK]

Did you go to the last post for the webinar replay and register to see it?

 

[golfnut]

They way I read the Iowa rules, which are bound to be adopted in other NAIC states, is that you can reference risk tolerance, etc., just dont give any investement advice, i.e. this mutual fund is better than this other stock/bond/mutual fund, because one is less risky than the other. Or they way I say it. I am an insurance licensed Agent for XY state and I do not provide investment advice. That should CYA.