The Company expects the Producer to understand and follow the rules of ethics and professional conduct listed. Failure to do so may result in termination of his Contract.
I. Code of Ethics
The Producer should always:
- Properly identify himself, the Company he represents, and his role in the sales process;
- Use an organized sales process that is based on fact-finding and thorough needs analysis;
- Use words, terms and symbols which accurately describe the features and benefits of the products being sold;
- Disclose to clients accurately, and in language they can understand, all relevant information about the products and services being recommended;
- Be aware that the Company does not encourage the replacement of existing insurance coverage of policyholders with other companies. The Producer should recommend a replacement only when it is clear that the new coverage is in the policyholder’s best interest and, if after a careful, thorough and fully documented analysis, it can be shown to provide both short- and long-term benefits to the client that outweigh the costs. The Producer should accurately complete all forms related to a replacement and submit them on a timely basis to the client, the Company, and state insurance authorities, if so required. The Producer shall provide copies of all state-mandated forms and guides to clients at the appropriate time during the sale process;
- Maintain complete client files and a master compliance file which includes all Company compliance-related policies and procedures;
- Respond on a timely basis to all customer complaints as well as all customer communications. The Producer should forward written complaints or grievances to the Company as soon as he receives them; and
- Educate himself about his responsibilities as a professional and become knowledgeable about compliance and market conduct rules and regulations in the insurance industry.
The Producer may not:
- Call life insurance or annuities “plans,” “programs,” or in any way disguise the fact that they are life insurance policies or contracts;
- Provide services such as legal or tax advice, or products such as securities for which he is not duly licensed and trained;
- Use a certification or professional designation that has not actually been earned;
- Show materials to the public which are identified as “For Agent Use Only” or “For Internal Use Only”;
- Sell products which do not meet the client’s financial and personal needs;
- Exaggerate, inflate or misrepresent products, services or the Company;
- Make any statement, written or oral, which is untrue and derogatory regarding the financial condition of any insurance company;
- Minimize, ignore, or avoid discussing aspects of products and services because they are complicated or potentially unfavorable;
- Develop “home grown” illustrations or advertising or present tabular numerical data which has not been approved by the Company;
- Use the terms “vanishing premium” or “vanish” when discussing the mechanics of using accumulated values to pay future premiums; or
- Give direct or indirect monetary or “in kind” rebates.
II. OBLIGATIONS ASSUMED BY THE PRODUCER
The Producer accepts the following obligations:
- To promote the business and welfare of the Company and to establish, equip and maintain reasonably adequate offices and records satisfactory to the Company for the conduct of business under this Contract.
- To solicit personally or through licensed agents and/or solicitors (if allowed by the Company for the product line being sold) applications to be submitted to the Company for policies which the Company is authorized to issue. The Producer shall promptly deliver newly issued policies to the policyowner.
- To use Company-approved contracts, without alteration, in the appointment of agents and/or solicitors (if allowed by the Company for the product line being sold). However, adjustments to the Schedule of Commission in these contracts may be made, provided prior approval is obtained in writing from the Company, and further provided any changes are not in violation of applicable laws and regulations of any jurisdiction involved.
- To act in such a manner and cause his agents and/or solicitors to act in such a manner so as not to adversely affect the business and reputation of himself or the Company.
- To distribute pertinent materials and information to agents and/or solicitors (if allowed by the Company for the product line being sold) in the Producer’s Hierarchy.
- To make all records, accounts, supplies, correspondence and documents of all kinds which relate to the business of the Company and which shall be the property of the Company, available to the Company and its representatives during normal business hours, with or without prior notice, and to surrender such records and accounts to the Company immediately upon the termination of this Contract.
- To conform to the rules and regulations of the Company and state jurisdiction as required concerning the solicitation of insurance and to provide continuing services to policyholders and beneficiaries under the policies and as required by the Company. The Producer shall comply with any and all rules and regulations of the Company as well as all relevant laws and regulations regarding, but not limited to, advertising, solicitation, market conduct, and trade practices involving the Company and the Company’s products.
- To receive on behalf of the Company and to remit promptly to the Company all monies or securities received by him as full or partial payment of initial or any premiums, accounts, charges, bills and other items for credit against the proper account or policies when applicable by product and approved by the Company. While such monies and securities, if any, remain in his possession, he shall hold them as a fiduciary for the Company in a segregated account not commingled with any of his private or other funds. Any such monies and securities received by the Producer shall be remitted to the Company within seven (7) days of receipt, unless another time frame is applicable for product and approved by the Company.
- To promptly forward to the Company any and all medical examinations which may come into his possession, whether or not they are reported on favorably by any medical examiner.
- To permit the Company, its accountants and other representatives to conduct audits of his books, accounts and records in connection with the business transacted under this Contract, which the Company may deem necessary, with or without prior notice, during business hours.
- The Agent shall obtain and maintain at his sole cost and expense all licenses and/or bonds that he is or shall be required to possess in order to perform the services described in this Contract and shall provide copies of such licenses and/or bonds to the Company.
III. LIMITATIONS IMPOSED ON THE PRODUCER
The Producer is not authorized to act, nor shall he give any indication of any kind that he is authorized to act, in any of the following ways:
- Represent that he is an employee, associate, joint venturer or partner of the Company;
- Change or waive any of the terms, conditions or rates set forth in promotional materials, or any advertisements, receipts, contracts or policies of the Company in any manner whatsoever;
- Issue, publish, circulate or permit any advertisements, solicitation or marketing material or text in any print, broadcast or electronic medium (including but not limited to newspapers, trade journals, brochures, scripts for radio or television or Internet/web page advertisements and websites) concerning the Company and/or its products without obtaining prior approval in writing from the Company. In addition, no links to the Company websites will be allowed without prior written authorization from the Company;
- Collect or authorize any other person to collect any premiums or other payments for the Company other than initial premiums, except when applicable by product and approved by the Company;
- Deliver, or cause to be delivered, any Policy of the Company when the Producer knows or has reason to know that the proposed insured is not in good health or is not insurable at the time of application or at the time of delivery of said Policy, unless said Policy was applied for and issued on a guaranteed basis;
- Bind the Company on any application for insurance other than as stipulated in the Conditional Receipt if it is part of the application for such insurance;
- Exercise any authority on behalf of the Company other than that expressly conferred by this Contract except as authorized by the Company in writing;
- Solicit any application in any jurisdiction in which the Producer is not then licensed and contracted to solicit such application or in which the Company is not then authorized to transact such business;
- Contract any debt or incur any obligation in the name of the Company;
- Extend the time for the payment of any premium;
- Reinstate any policy issued by the Company.