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 Replacement of Insurance Products Activity
Replacement of Insurance Products Activity
Over the past several months financial issues involving insurance carriers have motivated states to issue either a regulatory bulletin or a consumer alert concerning replacements. The regulatory bulletins specifically remind insurance companies and their producers not to use information about another insurer's financial condition to induce consumers to replace existing insurance policies. Some states are carefully monitoring replacement activity involving specific insurers. The State of Iowa has recently stated it is requiring the reporting of trends of increased replacement or disbursement activity occurring during 2008 and 2009.
EquiTrust Life producers are reminded that they are prohibited from making misleading statements regarding the financial condition of an insurer. Producers are responsible for providing documentation containing reasonable grounds for their belief that a product recommendation is suitable for a customer, and performing reasonable inquiries to determine suitability. Additionally, advertising of EquiTrust insurance products must be submitted to the Home Office and approved prior to use with the public. Producers are encouraged to regularly visit the insurance department websites of the states in which they are licensed to review regulatory bulletins or consumer alerts issued in those states.
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