Quick Reference Do’s and Don’ts

Do’s

  • Use only illustrations and sales material provided or approved by The Company.  All sales material must be reviewed and approved by the Company Advertising Department prior to use.
  • Use the sales process to determine if a product is suitable and in the best interest for your client’s needs and, for sales of fixed annuity contracts, provide the Company required suitability forms with the application.  The documented needs analysis in your client’s file must include employment status, approximate annual income, source of income, estimated net worth, financial objectives, product time horizon, marginal federal income tax bracket, investment.
  • Knowledge, existing investment account information, and risk tolerance.
  • Accompany replacements with full disclosure to the client of all-important considerations including any surrender charges and the appropriate replacement form for the state-of-issue.
  • Sell business only in states where you’re properly licensed and appointed.
  • Promptly deliver policy or contracts to the owner.  You’re not allowed to hold policies or contracts for safekeeping.
  • Verify that all information on the application is correct.  Applications should never be backdated or provide false or misleading information.
  • Sign as a witness only if you’re actually present at the signing process.
  • Maintain complete client files.
  • Document and report client complaints immediately to The Company – Compliance Department.
  • Educate yourself about state market conduct rules and regulations. Keep thorough continuing education records.
  • Keep all client Information confidential unless authorized by the client to release.
  • Protect client confidentiality and security of personal information.  Please remember that any email transmission which contains private client Information (whether in the email itself or in an attachment) must be sent and received using an encrypted email process.
  • Submit a full and complete illustration signed prior to, or the same date as, the application for life insurance.
  • Provide and review comparative illustrations using accurate and similar assumptions before replacing existing life insurance coverage.  While not required, we encourage you to provide an illustration for proposed annuities to include reviewing an illustration of the client’s current contract and/or policy if a Replacement is involved.
  • Immediately notify The Company Supervision and/or Compliance of all changes in your criminal history or of any involvement in a regulatory action.
  • Complete all agent training and keep up to date on new product information provided by The Company.
  • Cooperate fully with any investigation, audit, or inquiry being conducted by The Company.
  • Keep all licenses and appointments up-to-date.
  • Notify the Company if your insurance license or any professional license has been revoked, suspended, terminated, etc.

Don’ts

  • Don’t churn! Churning is the practice where contract values in an existing contract are utilized to purchase another contract.
  • The purpose of earning additional commissions, fees, or other compensation, without benefit to the Client. It is prohibited.
  • Don’t sign applications or forms from sales presentations made by other agents.  The agent who signs the application should be the agent who made the sales presentation.
  • Don’t sign or modify/alter any document on behalf of a client or other person under any circumstances, even if you have authorization from the client.
  • Don’t make, modify, or discharge contracts, policies or accounts.
  • Don’t extend the time for paying the premium or waive any of The Company’s or insurer’s rights or requirements.
  • Don’t agree to accept extra premium for extra risks.
  • Don’t advise a client to access free withdrawal amounts for the purpose of purchasing another contract or using it as premium for an existing contract unless there is a clear economic benefit to the Client.
  • Don’t have a client or another person sign a blank or incomplete document.
  • Don’t market or sell a contract with a spend down strategy, including but not limited to Medicaid, Medi-CAL, Veteran’s Administration Benefits, or the like.
  • Don’t endorse, deposit, cash, or otherwise negotiate any check drawn to The Company or any client.
  • Don’t directly or indirectly give rebates.  Don’t pay anything of value, directly or indirectly, to clients, agent, producer, or any other party to induce an individual or any legal entity to purchase a new contract or replace, withdraw funds, surrender, or in any other manner change an existing contract.
  • Don’t be an Assignee, Owner, Beneficiary, Contingent Beneficiary, Power of Attorney, Trustee, or Contingent Trustee of any contract issued other than a contract on your life or the life of a member of your immediate family.  Some states, such as Florida, may have even more strict guidelines that also prohibit the family of the agent from assuming these roles as well.
  • Don’t represent The Company in any manner before any governmental or self-regulatory authorities, including, but not limited to, state Insurance Departments, state Securities Departments, FINRA, and the Securities Exchange Commission (SEC).
  • Don’t modify or change the appearance of the contract, policy, account and/or company marketing materials.
  • Don’t act as notary or signature guarantee on clients’ financial or nonfinancial transactions.
  • Don’t maintain a joint financial account with a client unless the Client is a member of your immediate family.
  • Don’t accept cash, money orders, credit card checks, traveler’s checks or starter checks with no printed account owner information.
  • Don’t use personal funds to pay a client’s premiums.
  • Don’t discuss or attempt to requite or settle a complaint.
  • Don’t allow clients to make checks payable to you, your corporation, agency, or office staff.
  • Don’t use your personal or business address as the address for a client or a client’s contract.
  • Don’t use white out to make corrections to an application or form.  Complete a new form and obtain new signatures/dates.
  • Don’t submit premiums whose source of funds is known to be loans of any kind, including but not limited to, mortgages, reverse mortgages, and margin loans.
  • Don’t submit an application on a client you suspect or know to have provided false or misleading information on the application unless you include a cover letter explaining your suspicions.
  • Don’t engage with any clients known to be involved with activities that threaten public order or safety.
  • Don’t accept gifts, cash or checks made payable to you from any wholesaler or product provider nor give a gift to a client that has a value in excess of $100.00.
  • Don’t use you’re The Company email account for personal business.