You understand the risks involved with running
a successful insurance practice. And one of the key risks you face is the advertising you use to promote yourself and attract new clients. It’s
highly visible, and it’s in writing, memorialized for regulators and litigation
attorneys to potentially use against you. With so many regulations (which can
even vary by state!) it’s crucial that your advertising meets all of the rules
in order to ensure your long-term success.
So, you made a smart decision and had your
advertising reviewed by a compliance expert. You’re golden now, right?
Well, not necessarily. Rules and regulations
change, and so can the way in which they are interpreted and enforced by
regulators. Over time, a piece of advertising that was acceptable 2 years ago,
for example, could now land you in hot water if you haven’t kept up with the
changing regulatory landscape. It could be that states realized that certain
types of advertising are causing confusion for consumers. Or perhaps the sales
practices associated with some advertising crossed the line, and now that same
advertising is painting a target on your practice. A regulator might also
decide to look more closely at certain advertisements if they have experienced
an unusual number of consumer complaints or accusations of wrong-doing by the
agent associated with the advertising.
But this is a risk you don’t need to accept.
Just as you periodically evaluate your marketing materials to make sure they’re
still relevant and effective, you should also update your
advertising compliance approval.
Regulators expect insurance agents to always
use advertising and marketing that is accurate, fair & balanced and
current. For this reason, having a process in place to ensure a current
approval of your materials should be a standard part of your business.
Generally, you should aim to have your advertising approved at least annually,
unless the approval letter you are given states otherwise. Any longer than this
and you run the risk of using advertising that no longer complies with the
regulations in effect and increases the potential for it to be used against
you.
A regular review and re-approval process also
allows you to consider the value of each piece of advertising you use; you can
use this annual review process to weed out materials that aren’t working as you
expected, and perhaps add new – and approved- materials to your sales process.
And the cost? Yes, it’s an added expense each
year. However, typically the first review and approval of a piece of
advertising is the hardest. Once the piece has been reviewed for basic
advertising standards, the annual re-approval process is generally
significantly easier, and thus less expensive.
Make sure you didn’t waste your time and money
with a one-time approval that no longer protects you. Implement a re-approval process for all of
your advertising materials, and you’ll sleep better knowing you’re taking the
right steps to protect your practice, today and tomorrow.
MAUREEN JAMES -
CO-OWNER/PRINCIPAL AT SUMMIT COMPLIANCE GROUP, LLC
Experienced Compliance
Professional with a demonstrated history of working in the insurance industry.
Skilled in Securities, Disability Insurance, Retirement Planning, Fixed
Annuities, and Management. Strong entrepreneurship professional. Summit
Compliance is a proud DMI Marketing partner.
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