Numerous Departments have expressly advised, via statute, regulation or bulletin, against the improper use of professional designations by producers, particularly in connection with products marketed to senior citizens. (For examples, see CA Ins. Code § 787.1, CT regulation 38a-432b-2, and ND Bulletin 2008-2.) These are aimed primarily at those producers and insurers who offer life insurance products and are intended to guard against potentially abusive practices.
In addition to being required to make restitution to those who may fall victim to these abusive practices, both producers and insurers may also be subject to fines and even producer license revocations. One way to avoid these compliance problems is to ensure that those who represent an insurance company are not only well-versed in the specific product offerings, but also knowledgeable of the insurance industry generally.
Whether or not an insurer markets products aimed at seniors, it’s generally advantageous for an insurer to encourage its employees and/or producers to pursue various professional designations. Whether it’s a Chartered Property and Casualty Underwriter (CPCU) or Chartered Life Underwriter (CLU), or any number of other designations that are available, better educated and informed employees and producers can mean better products, better practices, and better results.
And, to others in the industry, these designations imply a certain level of expertise and credibility that tends to become associated with the insurers they work for or represent. Also, numerous trade associations or groups associated with these designations tend to encourage continuing education opportunities whether or not individuals have already obtained a particular designation.
Investing in employee or producer education can be money well spent.
