The Agent Who Did Not Take Precautions

Two Insurance Agents TalkingI spoke to an agent yesterday, who told me he was fined $3,000 for not disclosing to the client that he would have a tax liability for taking a distribution from an IRA and re-investing the proceeds into a life insurance policy. What can you learn from this case? Always have the client sign an extra disclosure relating to the product and the specific case beyond what the insurance company gives you. You never know what your client will do, thus you need to legally protect yourself, because the insurance company will always side with the client. For additional training on disclosures, go to: and

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