A resolution passed by the National Conference of Insurance Legislators (NCOIL) at its Spring National Meeting this past weekend urges states to adopt model regulations to protect consumers by outlawing the use of misleading senior-specific designations and certifications in the sale of insurance and investment products.
The model regulations were developed by the National Association of Insurance Commissioners and the North American Securities Administrators Association. NAIFA worked with both groups on the drafting of the models and provided input and support to NCOIL on the current resolution, which mentions NAIFA by name. During the NCOIL meeting, NAIFA Senior Vice President of Government Relations Bill Anderson testified in favor of the resolution.
“Part of NAIFA’s mission is to promote strong ethics among insurance and financial advisors,” said NAIFA President Robert Miller. “Our members are professionals who provide invaluable services and products to millions of consumers, including senior citizens.”
“The small number of cases in which individuals use unscrupulous and unprofessional tactics to prey on consumers give the public a false impression of our industry and deflect attention from all the good our agents and advisors do,” Mr. Miller added. “We urge every state that has not yet done so to adopt these model regulations governing the use of senior-specific designations.”
So far, twenty-eight states and the District of Columbia have enacted the NAIC model regulation, while and thirty states and the District of Columbia have enacted the NASAA model regulation.
Washington is currently one of several states considering a senior-designations model based on the NAIC model. The state insurance department reconsidered an earlier proposal that deviated from the model and would have barred advisors from using several well regarded designations, including CFP and ChFC, and from telling clients about their membership in professional organizations, such as NAIFA.