The National Association of Insurance Commissioners today announced its adoption of a rule that sets standards on the use of senior-specific designations.
The “Model Regulation on the Use of Senior-Specific Certifications and Professional Designations in the Sale of Life Insurance and Annuities” sets boundaries on agents’ use of designations when they sell life insurance and annuities.
Producers are barred from using certifications and designations to mislead seniors into buying products or giving them advice on purchasing insurance or annuities.
Prohibited use of senior-specific designations includes using certifications obtained from groups that teach producers to market their products, that don’t have reasonable standards to assure the competency of certificate holders or that don’t have reasonable continuing-education requirements to keep the designation in effect.
Producers who misrepresent their expertise, as well as insurers who allow their agents to do so, are subject to penalties under state law. The NAIC is located in Kansas City, Mo.
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