South Carolina Code of Regulations › Chapter 69 - DEPARTMENT OF INSURANCE › Section 69-40.1 - Use of Senior-Specific Certifications and Professional Designations in the Sale of Life Insurance and Annuities

Current through Register Vol. 48, No. 6, June 28, 2024
Section
		  1. Purpose
The purpose of this regulation is to set forth standards to
			 protect consumers from misleading and fraudulent marketing practices with
			 respect to the use of senior-specific certifications and professional
			 designations in the solicitation, sale or purchase of, or advice made in
			 connection with, a life insurance or annuity product.
Section 2. Scope
This regulation shall apply to any solicitation, sale or purchase
			 of, or advice made in connection with, a life insurance or annuity product by
			 an insurance producer.
Section
		  3. Definition
For purposes of this regulation, "insurance producer" means a
			 person required to be licensed under the laws of this State to sell, solicit or
			 negotiate insurance, including annuities.
Section 4. Prohibited Uses of Senior-Specific
		  Certifications and Professional Designations
A.
(1) It
		  is an unfair and deceptive act or practice in the business of insurance within
		  the meaning of Chapter
		  57 of the 1976 Code of Laws of South
		  Carolina, as amended, for an insurance producer to use a senior-specific
		  certification or professional designation that indicates or implies in such a
		  way as to mislead a purchaser or prospective purchaser that the insurance
		  producer has special certification or training in advising or servicing seniors
		  in connection with the solicitation, sale or purchase of a life insurance or
		  annuity product or in the provision of advice as to the value of or the
		  advisability of purchasing or selling a life insurance or annuity product,
		  either directly or indirectly through publications or writings, or by issuing
		  or promulgating analyses or reports related to a life insurance or annuity
		  product.
(2) The prohibited use of
		  senior-specific certifications or professional designations includes, but is
		  not limited to, the following:
(a) Use of a
		  certification or professional designation by an insurance producer who has not
		  actually earned or is otherwise ineligible to use such certification or
		  designation;
(b) Use of a
		  nonexistent or self-conferred certification or professional
		  designation;
(c) 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
(d) Use of a
		  certification or professional designation that was obtained from a certifying
		  or designating organization that:
(i) Is
		  primarily engaged in the business of instruction in sales or
		  marketing;
(ii) Does not have
		  reasonable standards or procedures for assuring the competency of its
		  certificants or designees;
(iii)
		  Does not have reasonable standards or procedures for monitoring and
		  disciplining its certificants or designees for improper or unethical conduct;
		  or
(iv) Does not have reasonable
		  continuing education requirements for its certificants or designees in order to
		  maintain the certificate or designation.