New Jersey releases rule to impose fiduciary duty on brokers. 

Apr 15, 2019 : By Mark Schoeff Jr, Investment News

InvestaGuard is the best E&O policy for financial firms our industry has seen in 15 years and available exclusively through InterWeb Insurance LLC.

 

Designed for Broker-Dealer, Registered Investment Advisor and Insurance Agency firms and their advisors.

With over 30 years’ experience brokering financial services E&O, we created this policy with you, the policyholder, in mind.

 

Oct 17, 2017 : InterWeb Insurance

While many business owners worry about liability and property risk especially in the immediate wake of Hurricanes Harvey and Irma. This insurance is called professional liability insurance, which is often referred to as errors and omissions or malpractice insurance, (E&O).

InterWeb Insurance is your best choice in buying insurance E&O due to its low cost and excellent customer service. Sometimes, wading through the choices is such a chore that many busy professionals are tempted to simply go without insurance. (E&O) insurance, is a special type of coverage that protects your company against claims that a professional service you provided caused your client to suffer financial harm due to mistakes on your part (errors) or because you failed to perform some service (omissions).

E&O insurance can cover the cost of defending your company in a civil lawsuit and certain damages awarded, even if the legal action turns out to be groundless. Professional liability insurance is required by law in some areas for certain kinds of professional practices, especially medical and legal, where it is more commonly called malpractice insurance. This type of protection is not part of your general liability or homeowners insurance.

Coverage does not include criminal prosecution, and there is a wide range of potential liabilities under civil laws that may not be covered unless specifically written into the policy. Common claims that professional liability insurance covers are negligence, misrepresentation, violation of good faith and fair dealing, and inaccurate advice. Some policies could also cover privacy violations.

 

 

August 2, 2017 | By Mark Schoeff Jr.

Consumer groups and American Council of Life Insurers square off over how stringent the investment advice standard should be

 

An effort by state insurance regulators to raise investment-advice standards for annuity sales appears to be driving a wedge between consumer organizations and a life insurance trade association.

In light of the Labor Department's fiduciary rule, the National Association of Insurance Commissioners established a working group in April to review its suitability standard for annuity sales.

In advance of the working group's next meeting on Sunday in Philadelphia, the NAIC has been receiving input on its review, including a proposal for a "uniform standard of care" submitted by the American Council of Life Insurers.

Under the ACLI framework, a broker or insurance representative would be making a recommendation in the best interest of a consumer when he or she makes no misleading statements, fully discloses fees and compensation and "avoids, discloses or reasonably manages material conflicts of interest."

The ACLI approach drew a rebuke from 14 consumers groups in a comment letter to the NAIC working group. The organizations, which include the AFL-CIO, Better Markets, the Center for Economic Justice and the Consumer Federation of America, said that ACLI's proposal did not restrict conflicts of interest.

"Instead, the ACLI proposal would give firms a choice of disclosing, managing or avoiding conflicts," states the letter, which also was signed by 10 individuals identified as NAIC consumer representatives. "The predictable outcome is industrywide practice of addressing conflicts through disclosure alone, despite overwhelming evidence that such an approach is ineffective in protecting consumers from the harmful impacts of conflicts."

The ACLI supports a uniform standard of care that can be enforced by the Securities and Exchange Commission, the DOL and state regulators, said Jim Szostek, ACLI vice president, taxes and retirement security.

"The [DOL] fiduciary regulation is causing significant harm to American investors, who are losing access to advice," Mr. Szostek said in a statement. "The elements in our outline are aimed at providing a better solution that significantly enhances the current NAIC suitability standard. It works to enhance existing standards enforced by state insurance regulators, the SEC and Finra [the broker-dealer regulator], bringing to bear decades of experience in enforcing disclosure-based rules. In fact, the DOL failed to provide any meaningful evidence that these disclosure-based rules are ineffective in protecting consumers."

Inappropriate sales of variable and fixed annuities, which provide an income stream in retirement but can be complicated and costly, have been cited by DOL rule proponents as examples of why the regulation is needed.

The current NAIC model suitability regulation requires that a recommendation for an annuity purchase be suitable for a client based on his or her investment objectives, time line, net worth, liquidity needs and risk tolerance, among other criteria. Insurance is regulated at the state level, and the NAIC model rule has been adopted by 40 states.

In their letter, the consumer groups outlined seven "key principles" the NAIC should follow in reforming its annuity suitability standard, including "substantive prohibitions on conflicts of interest as opposed to 'managing' or 'disclosing'" them.

"In addition to requiring avoidance of conflicts, it must include a requirement to engage in a prudent process and document the basis on which the insurer and producer concluded the product recommended was the best of the available options for the customer," the letter states.

The ACLI model differed on that point, too.

"The uniform standard of care does not require a recommendation of the least expensive or 'best' product available," the ACLI diagram states.

The ACLI also said that its advice standard applies on a transaction basis, meaning that there is no ongoing duty of care for the adviser beyond the point of sale. It also allows the sale of proprietary products and the receipt of compensation, such as commissions, that vary according to the product. The ACLI framework closely resembles the best-interest standard outlined in recent House legislation supported by Republican lawmakers.

The DOL rule is being reviewed under a directive from President Donald J. Trump that could lead to a delay of the Jan. 1 final implementation date or other result in other changes.

Under the DOL regulation, brokers would have to adhere to a fiduciary standard, which is the standard that currently governors investment advisers. Supporters say the DOL rule mitigates broker conflicts that lead to the sales of inappropriate high-fee investment products that erode savings. Industry opponents say the regulation is too complex and costly and will force brokers to abandon savers with modest accounts.

Cold Calling Tips & Scripts for Insurance Agents

August, 2017 | By PermissionGroup

 

First off… let’s clear the air.

Cold calling works, it still works for today’s insurance agents, and it produces tremendous results. Just because the fear of rejection might be lessened in other forms of prospecting and marketing doesn’t mean cold calling is ineffective. Not in the least.

Cold calling is not dead.

I repeat: COLD CALLING IS NOT DEAD!

Sure, things like social media and email marketing are also good, but don’t count cold calling as dead, outdated, or something only the older insurance agents do.

Cold calling works and it works in amazing ways and can result in tens of thousands of dollars in new business commission this year. But you’ll have to make the cold calls to find out for yourself.

What to Say in a Cold Call

There’s no perfect cold-calling script, but maybe this will help you understand what works and what doesn’t, and why.

QUESTION: Which of the following two cold-calling scripts do you think works better at getting people’s attention and ultimately an appointment?

1. “Hello, my name is Charles Specht and I’m with Permission Insurance, Inc. Our firm has been in existence since 1954 and we are experts at many types of insurance, particularly auto insurance. Our service people are truly some of the best in the industry and we represent most of the major insurance carriers writing your industry. We have very competitive rates and I’d like to meet with you for 15 minutes or so to see if I can save you any money. How does this Tuesday at 1:30pm sound?”
2. “15 minutes can save you 15% or more on car insurance.”

Well … #2 works better because it is short, sweet, and has a juicy Carrot on the end of a stick that you want to take a bite out of. And that’s the key.

(PS: Thanks Geico, for your help on this one!)

The Cold Call Carrot

You need a C3, which stands for Cold Call Carrot.

When it comes to cold calling, you need to throw out your big Carrot in the first two or three sentences, and then STOP TALKING.

So figure out what your Carrot is.

No…seriously…figure it out BEFORE you make the calls!

Your Carrot should be YOUR SOLUTION TO THEIR BIGGEST PROBLEM OR FRUSTRATION.

It might be, for example:

• Our workers’ compensation program is saving other box manufacturers in California, just like yours, anywhere from 33%-67% off their total annual insurance costs. Are you interested?
• Our Social Services program will give you unlimited Defense Costs, we write 57 other adoption agencies in Florida, and we’re 27% less expensive than most other carriers. Are you interested?
• By combining your health insurance policy and your worker’s compensation renewal with our agency, we’re often able to convince underwriters to offer you an additional credit on their quote, which you wouldn’t otherwise receive. Are you interested?

Basically, you tell the prospect who you are, throw out the major PROBLEM THEY ARE EXPERIENCING AND WHAT YOUR SOLUTION TO IT IS, ask for an appointment to see if they will qualify, and be quiet.

Don’t talk too much. Make it a few sentences, and then just be quiet and don’t break the silence. Let them be the first to speak.

But make sure your offering is a truthful, ethical, mouth-wateringly attractive Carrot……the “reason” they should be interested and will want to meet with you.

What if I Make Your Cold Calls?

Maybe I would say something like this if I was making your cold calls…

“Hello John, and thanks for taking my call. My name is Charles and I solve problems for structural steel erection contractors, just like your company. I insure 27 other such contractors around the country and my policy provides “Completed Operations” coverage to satisfy all the certificate requirements of your general contractors. My sales rate has been roughly 27% less than the other carriers writing structural steel erection contractors. Are you interested?”

Write out your Carrot, use it, memorize it…and it will become your elevator pitch!

So… what is your C3? What is your Cold Call Carrot?

PS: Good luck on the cold calls, and sell some profitable business!

July 13, 2017 | By The Times

 

A Louisiana man who authorities say set fire to his ex-girlfriend's house while her six children were inside has been arrested.

The Times-Picayune reports 41-year-old Demond Sampson was arrested July 7 and charged with violation of a protective order and aggravated arson of an inhabited dwelling. He was also booked on a separate simple battery charge.

The St. John the Baptist Parish Sheriff's Office said in a statement Tuesday that Sampson walked into the backyard of his ex-girlfriend's house, poured gasoline on a corner of the house and ignited a fire with the children inside.

Authorities say the children range in age from one to 18 and that Sampson isn't related to the children. The state fire marshal's office is investigating the fire. It's unclear if Sampson has a lawyer.