Code of Ethics DFS
Code of Ethics
Marketing Regulatory and Ethical Guidelines for Licensed Florida Insurance Professionals
Military Sales Practices – United States Armed Forces (USAF) The standards of this chapter are intended to protect active duty service members from dishonest and predatory insurance sales practices by declaring certain identified practices to be false, misleading, deceptive, or unfair. It applies only to the solicitation or sale of life insurance or annuity products by an insurance producer to an active duty service member of the USAF. [Source: Chapter 69B-240.001]
· “Active Duty” means full-time duty in the active military service of the U.S. and includes members of the National Guard and Reserve while serving under orders for active duty, full-time training, or a drill status in the National Guard or Reserves.
· “Department of Defense (DoD) Personnel” means all active duty service members and all civilian employees, including non-appropriated fund employees and special government employees, of the Department of Defense.
· “Military Installation” means any federally owned, leased, or operated base, reservation, post, camp, building, or other facility to which service members are assigned for duty, including barracks, transient housing, and family quarters.
· “MyPay” is a Defense Finance and Accounting Service (DFAS) web-based system that enables service members to process certain discretionary pay transactions or provide updates to personal information data elements online.
· “Service Member” means any active duty officer or enlisted member of the USAF.
· “Side Fund” means a fund or reserve, part of or otherwise attached to, a life insurance policy (excluding individually issued annuities) by rider, endorsement, or other mechanism that accumulates premium or deposits with interest or by other means. The term does not include:
· Accumulated, cash value, or secondary guarantees provided by a universal life policy;
· Cash values provided by a whole life policy, which are subject to standard nonforfeiture law for life insurance; or A premium deposit fund that:
* Contains only premiums paid in advance that accumulates interest;
* Imposes no penalty for withdrawal;
* Does not permit funding beyond future required premiums;
* Is not marketed or intended as an investment; and
* Does not carry a commission, paid or calculated
Definitions Chapter [69B-240.001(4)]
“United States Armed Forces” (USAF) means all components of the Army, Navy, Air Force, Marine Corps, and Coast Guard.
The following acts or practices when committed on a military installation by an insurance producer with respect to in-person, face-to-face solicitations of life insurance are declared to be unfair or deceptive acts or practices:
· Soliciting the purchase of life insurance products “door-to-door” or without first establishing a specific appointment for meeting with the prospect.
· Soliciting service members in a group, mass, or captive audience where attendance is mandatory.
· Making appointments with or soliciting service members during scheduled duty hours.
· Making appointments with or soliciting service members in barracks, day rooms, unit areas, or transient personnel housing or other areas where the installation commander has prohibited solicitation.
· Soliciting the sale of life insurance without first obtaining permission from the installation commander or the commander’s designee.
· Posting bulletins, notices, or advertisements, not authorized by the installation commander.
· Failing to present DD Form 2885, Personal Commercial Solicitation Evaluation, to service members solicited, or encouraging service members solicited, not to complete or submit a DD Form 2885.
· Accepting an application for life insurance or issuing a policy of life insurance on the life of an enlisted member of the USAF without first obtaining for the insurer’s files a completed copy of any required form which confirms the applicant has received counseling or fulfilled any other similar requirement for the sale of life insurance established by regulations, directives, rules of the DoD, or any branch of the USAF.
· Using DoD personnel as a representative or agent in an official or business capacity with respect to the solicitation or sale of life insurance to service members.
· Participating or using another insurance producer to participate in any USAF sponsored education or orientation program.
The following acts or practices by an insurance producer constitute corrupt practices, improper influences or inducements and are declared to be unfair or deceptive acts or practices prohibited by Florida statutes regardless of the location where committed:
· Submitting, processing, or assisting in the submission or processing of any allotment form or similar form used by the USAF to direct a service member’s pay to a third-party for the purchase of life insurance.
· Receiving funds from a service member for the payment of premium from a depository institution with which the service member has no formal banking relationship.
· Employing a device or method or entering into an agreement where funds received from a service member by allotment for the payment of insurance premiums are identified on the service member’s Leave and Earnings Statement or equivalent or successor form as “Savings” or “Checking” and where the service member has no formal banking relationship.
· Entering into an agreement with a depository institution for the purpose of receiving funds from a service member where the depository institution agrees to accept direct deposits from a service member with whom it has no formal banking relationship.
· Using DoD personnel as a representative or agent in an official or unofficial capacity with respect to the solicitation or sale of life insurance to service members, or their families.
· Offering or giving anything of value to DoD personnel to procure their assistance in encouraging, or facilitating the solicitation or sale of life insurance to another service member.
· Offering or giving anything of value to a service member for attending any event where an application for life insurance is solicited.
· Advising a service member to change his or her income tax withholding or state of legal residence for the sole purpose of increasing disposable income to purchase life insurance.
· Making any representation, or using any device, title, descriptive name, or identifier that has the tendency or capacity to confuse or mislead a service member into believing the insurer, producer, or product offered is affiliated, connected to, associated with, endorsed, sponsored, sanctioned, or recommended by the U.S. Government, the USAF, any state, federal agency, or government entity.
· Nothing in this rule is to be construed to prohibit a person from using a professional designation awarded after the successful completion of a course of instruction in the business of insurance by an accredited institution of higher learning. Such designations include: Chartered Life Underwriter (CLU), Chartered Financial Consultant (ChFC), Certified Financial Planner (CFP), Master of Science In Financial Services (MSFS), or Masters of Science Financial Planning (MS).
· Soliciting the purchase of any life insurance product through the use of or in conjunction with any third-party organization that promotes the welfare of or assists members of the USAF in a manner that has the tendency to confuse or mislead a service member into believing the insurer, insurance producer, or insurance product is affiliated, connected or associated with, endorsed, sponsored, sanctioned, or recommended by the U.S. Government or the USAF.
The department has authority to investigate the affairs of anyone to whom this rule applies. If an investigation demonstrates a violation has occurred, procedures and penalties allowed by state statute are enforced.
Before purchasing or exchanging an annuity by a senior, an insurance agent or an insurer, unless exempt or required by FINRA to perform an alternative suitability analysis, must use Florida’s Annuity Suitability Questionnaire (http://www.myfloridacfo.com/agents/Licensure/Forms/docs/DFS-H1-1980.pdf) to obtain information in order to determine the suitability of a recommendation.
Before executing a replacement or exchanging an annuity by a senior, the insurance agent or insurer must also provide contract comparison information to the senior consumer utilizing the Disclosure and Comparison of Annuity Contracts.
The Department will approve an insurer’s modification to the forms provided if:
· The forms contain all the information the department forms contain;
· The typeface size is 12-point;
· Additional material added to the form does not obscure the information required, or rearrange the required information in such a way as to make it more difficult to find or understand;
· The revised form does not contain misrepresentations or misleading statements.
Insurers can modify the form to use check boxes for indication of investment experience and risk tolerance, but cannot substitute check boxes for other items on the form.
Chapter 4 Contents