The Connecticut Insurance Department issued a proposed regulation (the “Proposed Regulation”) relating to use of senior-specific certifications and professional designations in the sale of life insurance and annuities. The Proposed Regulation aims protect seniors from abusive sales practices and fraud and is based on the NAIC Model Regulation on the Use of Senior-Specific Certifications and Professional Designations in the Sale of Life Insurance and Annuities (the “Model”).
The prohibited use of senior-specific designations includes, but is not limited to, the following:
1. Use of a certification or professional designation by a producer who has not actually earned or is otherwise ineligible to use such certification or designation;
2. Use of a nonexistent or self-conferred certification or professional designation;
3. Use of a certification or professional designation that indicates or implies a level of occupational qualifications obtained through education, training or experience that the insurance producer using the certification or designation does not have; and
4. Use of a certification or professional designation that was obtained from a certifying or designating organization that
a. Is primarily engaged in the business of instruction in sales or marketing;
b. Does not have reasonable standards or procedures for assuring the competency of its certificants or designees; Does not have reasonable standards or procedures for monitoring and disciplining its certificants or designees for improper or unethical conduct; or
c. Does not have reasonable continuing education requirements for its certificants or designees in order to maintain the certificate or designation.
Connecticut is accepting comment with respect to the Proposed Regulation within thirty days following publication in the Connecticut Law Journal. It is expected that the Proposed Regulation will be published on January 26, 2010.