to sell equity indexed/fixed indexed annuities you have to to
make the sale !
Are Insurance liscenced agents really getting in trouble if they make financial reccomendations???
19
Feb
to sell equity indexed/fixed indexed annuities you have to to
make the sale !
rmjavier94
February 19, 2010 at 2:24 am
I don’t think so provided that they make it very clear to the prospective client that returns on equity investments are NOT guaranteed.
Data presented are historical performance
of the equity based fund.
Mr. Q
February 19, 2010 at 3:05 am
Agents must have their securities license to sell mutual funds, and usually have a few to choose from for their clients. But thay do not recommend specific stocks, etc.
Ruby
February 19, 2010 at 3:38 am
I think licensed insurance agents are getting into trouble if they overstep their areas of expertise. Most have to have passed some sort of test to sell the equity indexed annuties.
True it’s nice to make a sale but appropriateness of the investment for the client is the number one consideration. And that’s where the agents are getting into trouble, as well as not explaining EXACTLY what the product really is.
If you tell a client that they have participation in the market without the risk–that’s one of the statements that the SEC thinks is very misleading.
These products are fine in certain situations, and they need to be used only when it would really benefit the client, not the agent.
Agency Builder w/ BTID
February 19, 2010 at 3:39 am
It depends on the recommedations. Basically, if you did something just to get the commission and/or made a recommendation for a product that is unappropriate for the client, you can be sued and/or fined.
As far as selling equity indexed annuities. A lot of companies name their products fixed indexed annuities. If you are an agent having a problem with the annuities issue, Then you probably need to start looking for another marketing organization or agency. Our industry is so ever changing it probably impossible to keep up with everything, unless you are in a captive environment with a few select products.
aaron p
February 19, 2010 at 3:55 am
As long as it’s general and impersonal, you should be fine. You need to make sure that the product is suitable, but offering financial advice to sell a commission product is a no no. The FPA recently won the suit against the SEC for the so-called “Merrill Lynch Rule”. This creates a new gray area.
If you’re going to offer advice beyond insurance related matters, even if you don’t collect a fee, you should consider getting your series 65.