NAIC Bans Flimsy Senior Credentials
October 5, 2008
The National Association of Insurance Commissioners (NAIC) has approved a model regulation designed to protect consumers from deceptive practices in the sale of life insurance and annuities.
The Model Regulation on the Use of Senior Specific Certificates and Professional Designations prohibits the use of misleading certifications and designations in the sale of life insurance and annuities.
“Seniors should not have to question the veracity of the qualifications listed on their advisors’ business cards,” said Cliff Wilson, president of the National Association of Insurance and Financial Advisors (NAIFA).
“Once the new model is adopted by the states, consumers can have confidence that an advisor they are working with who uses a senior-specific designation has the qualifications and the training necessary to address their needs,” he said.
Any use of senior-specific designations that implies a level of training the producer does not have is prohibited by the rule, as are any certificates issued by marketing and sales organizations that do not have a program of continuing education or procedures for monitoring and disciplining their designees for improper conduct.
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