Transcription
Insurance products issued by:Minnesota Life Insurance CompanySecurian Life Insurance CompanyPolicies and proceduresLife insurance and annuity salesF73359 Rev 2-2019
ContentsPolicies and Procedures Introduction. 3Licensing and Appointment. 4A.B.C.D.E.LicensingAppointmentContinuing EducationCommissionsRespectful BehaviorSales Practices. s and Prohibited StatementsIllustrationsSuitabilitySales to Seniors and Vulnerable AdultsUnfair Trade PracticesApplicationsElectronic Applications and SignaturesPremium FinancingCustomer MoniesPolicy Against Certain Sales ConceptsNew York Compensation Disclosure RequirementsPolicy and Contract DeliveryRecord RetentionReplacements. 16A.B.C.Non-New York ReplacementsNew York ReplacementsInternal Replacement Compensation Policy — Proprietary Life Complaints. 19A.B.DefinitionProceduresCompliance with other Laws and Regulations. 20A.B.C.D.E.F.G.H.I.J.Anti-money-laundering PoliciesMarijuana-Related BusinessesAnti-STOLI PoliciesPrivacyNotification of Data BreachSolicitation Rules and RegulationsIntellectual PropertyERISA and Department of Labor (DOL) RegulationsRequired ReportingInvestigationsPage 2 of 24
1. Policies and Procedures IntroductionThis policies and procedures guide is a reference for producersand should be read carefully. It was created to make producersselling Minnesota Life and Securian Life products aware of ourpolicies and procedures, and of laws, rules and regulationsgoverning the sale of our products. You are responsible forcomplying with these policies and procedures in addition toany policies and procedures required by your affiliated agencyor broker-dealer.This guide is not a recitation of all of the applicable laws, rules or regulations. Producersare responsible for compliance with all applicable laws, rules and regulations and maybe subject to regulatory sanctions or criminal prosecution for violations. This guide isnot for use with the sale or administration of group annuities utilized in conjunction withretirement plans. Any documents referenced in this guide are considered part of ourpolicies and procedures. As your sales agreement with Minnesota Life or SecurianLife states, violations of our policies and procedures may result in disciplinary actionor termination.For questions related to Minnesota Life’s or Securian Life’s Policies and Procedures, youmay contact us using the following options: Life products: 1-888-413-7860 Annuity products: 1-800-362-3141 advisor.securian.comPage 3 of 24
2. Licensing and AppointmentAll states have laws that require persons engaged in the business ofselling life insurance and individual annuity products (products) to belicensed. Most states also require producers to be “appointed” by aninsurance company in order to sell its products. Only producers whoare licensed under applicable state insurance laws and appointed byMinnesota Life and/or Securian Life (each referred to individually inthis guide as a “Company,” collectively as the “Companies”) may sellproducts on our behalf. Contact the Companies’ Central Licensing Unitat 651-665-6113 if you have questions about your appointment status.A. LicensingYou are responsible for obtaining and maintaining your license in every jurisdiction where yousell products for the Companies. This includes taking the continuing education courses requiredby the department(s) of insurance in the relevant jurisdiction(s) and providing notification of anyrelevant changes in your status. You should also be aware that insurance licensing laws are notuniform from one state to another. The laws vary considerably in terminology, the mechanics oflicensing, and the definition of persons who are subject to the licensing requirements. NeitherCompany will allow the sale of a product unless the producer is appropriately licensed.B. AppointmentYou must also be appointed by one or both Companies to sell their products. State laws differwidely concerning the timing of appointments, the actions that producers may take beforeappointments are filed with the state insurance department, and the ability of insurers to paycommission while appointment paperwork is being processed. Neither Company will allow thesale of its products by a producer who is not appointed by the Company. You should also be awarethat, in addition to any state-required background check, the Companies perform criminal and civilbackground checks on all producers and that insurance companies are typically required to notifystates of the appointment or termination of any producer. In certain circumstances, this backgroundcheck may instead be performed by your agency or broker-dealer. The Companies in their solediscretion may choose to accept or deny any appointment request.C. Continuing EducationMost states have adopted continuing education laws, which vary widely by jurisdiction. In somecases there may be specific education requirements for a particular product. In order to maintainyour license(s), you need to stay informed of continuing education requirements in all stateswhere you do business.D. CommissionsGenerally, it is illegal for an insurance company to pay a commission, directly or indirectly, toany person who has not been properly licensed as a producer and is not appointed with thecompany. Further, all producers receiving compensation, whether directly or indirectly, as a resultof the issuance of our products should be disclosed on the appropriate forms. The Companieswill not pay commissions to a producer unless licensing and appointment requirements havebeen fully satisfied. Producers may not falsify an application for a consumer in order for anotherproducer to receive a commission on a sale.Page 4 of 24
E. Respectful BehaviorThe Companies are committed to providing work environments that are free ofall forms of disrespectful behavior including harassment. The Companies prohibitcomments, behaviors or jokes that are personally offensive, demonstrate a lack ofrespect for others, or interfere with work effectiveness regardless of whether theoffensive/disrespectful behavior(s) are displayed or made in person, via electroniccommunications or in any other manner that interferes with work effectiveness (e.g. viatext or email). This explicitly includes harassment, which is unwelcome conduct on thebasis of race, sex, religion, gender identity, sexual orientation, age, disability, or anyother basis protected by law.Retaliation against a person who reports harassment, assists someone with a reportof harassment, or participates in any manner in an investigation or resolution of aharassment report, is also prohibited. Retaliation includes threats, intimidation, reprisals,and/or adverse actions related to employment.If you are found to have engaged in disrespectful behavior, harassment or retaliation,you will be subject to disciplinary action up to and including termination.3. Sales PracticesThis section provides basic standards and guidelines forthe sale of either Company’s products. Sales and marketingpractices regarded as the most important to assuringappropriate marketplace behavior are listed below. This sectionis not, however, a comprehensive review of all state statutes,rules and regulations governing the sale or marketing ofproducts. If a particular sales practice is not listed below, thatdoes not indicate that the practice is appropriate or has beenapproved by the Companies.As you review these guidelines, please note that Minnesota Life is not authorized asan insurer in New York. Therefore, producers are prohibited from conducting salesactivities on behalf of Minnesota Life from within the State of New York. Sales activityincludes, but is not limited to; contact with prospective Minnesota Life customers fromwithin New York, sales activities originating within New York and contact with NewYork residents while either the agent or prospective customer is within the State of NewYork. Producers must comply with the requirements detailed in the document entitled“Minnesota Life Sales Activities Requirements for Advisors with Offices in or ConductingBusiness in New York.” A copy of the document can be found at securian.com/policiesor is available upon request.A. AdvertisingAlmost every state attempts to define life insurance and annuity advertising and provideinsurance companies and producers with rules and regulations governing the use ofadvertising. Most of the tools, sales literature, and procedures for creating and reviewingsales literature used in the sale of products are governed by federal law and/or state lifeinsurance and annuities advertising regulations.You may only use advertising, sales and marketing materials mentioning the Companiesor the Companies’ products that have been approved by the Companies prior to use.That is why it is important to understand the definition of advertising and the Companies’advertising review and approval processes.Page 5 of 24
i. DefinitionThe definition of an “Advertisement” or “Advertising” for life insurance or annuitysales is very broad and covers many types of communications. For example, an itemprepared for use in the routine course of business (e.g., a customer prospecting letter)may be deemed to be an advertisement subject to regulation in some states. Somestates also consider any statement, written or oral, to be an advertisement if it ismade by a producer when promoting an insurance product.The Companies follow the NAIC rules governing the advertising of life insurance,which generally define an “advertisement” as “material designed to create publicinterest in insurance products such as life insurance or annuities or in an insurancecompany, or in an insurance producer; or to induce the public to purchase,increase, modify, reinstate, borrow on, surrender, replace or retain an insuranceproduct including: Printed and published material, audiovisual material, descriptive materialand descriptive literature of an insurer or insurance producer used in directmail, newspapers, magazines, radio and television scripts, billboards andsimilar displays. Descriptive literature and sales aids of all kinds issued by an insurer, its insuranceproducers, or third parties, issued, distributed or used by such insurer or insuranceproducer; including but not limited to circulars, leaflets, booklets, depictions,spreadsheets, illustrations and form letters. Material used for the recruitment, training and education of an insurer’s insuranceproducers that is designed to be used or is used to induce the public to purchase,increase, modify, reinstate, borrow on, surrender, replace or retain a policyor contract. Prepared sales talks, presentations, and material for use by insurance producers. State insurance regulators and the National Association of InsuranceCommissioners have advised insurers that all social media (e.g., Facebook,Twitter, LinkedIn) is considered to be advertising. Therefore, all existing statelaws and regulations that apply to other forms of advertising will also apply tosocial media. Further, if you are a registered representative associated with abroker-dealer, you must comply with FINRA advertising requirements and yourbroker-dealers advertising procedures.ii. ApprovalAll advertisements referring to Minnesota Life, Securian Life or their products mustbe submitted to and approved by the Companies PRIOR to use. The Companiesreserve the right to review or audit your files that contain advertising materialsthat use the Companies’ names or mention their products. As stated in your salesagreement with the Companies, failure to obtain the Companies’ approval of alladvertising prior to its use may result in disciplinary action or termination.The Companies may provide you with preapproved materials for sale of ourproducts. You may not alter or modify any Company-prepared advertising. Anymaterial marked for advisor use only, for financial professional use only, or with asimilar designation, may not be downloaded to a public facing website. In addition,certain advertising material may not be approved for use in all states. All materialshould be reviewed to determine any state-based rules and restrictions. Underspecial circumstances in which other advertising may be required, you should callyour marketing contact in the Companies to obtain prior approval of advertisingmaterials you have created. Please plan ahead and allow at least one week forCompany approval.Page 6 of 24
B. Disclosures and Prohibited StatementsAs stated above, we require you to use only Company-prepared sales brochures andother preapproved promotional materials. If you wish to prepare materials for reviewand approval by either Company prior to use, the guidelines noted here should beobserved. Please note that these guidelines apply not only to written materials, but alsoto oral statements promoting the Companies or the Companies’ products. You shouldalso refer to “Verbal Disclosures” for a discussion of certain terms that are prohibited inwritten and oral statements about the Companies’ products.i. Use of Company NamesIt is important to avoid consumer confusion about the identity of the insurancecompany issuing a product. In particular, an advertisement may not give themisleading impression that the parent company or any other company affiliatedwith the insurer is financially responsible for the insurer’s obligations under a lifeinsurance policy or annuity contract. All advertisements should use the appropriateCompany’s full and correct name, Minnesota Life Insurance Company or SecurianLife Insurance Company, to identify the issuing Company. In addition, descriptionsof each Company and its affiliates should correctly describe the corporaterelationships among those companies.ii. Statements about the CompaniesAny written or oral statements about the Companies’ financial condition shouldcomply with the following guidelines: Rating Agencies. Any advertisement or written or oral statement promoting eitherof the Company’s ratings by national rating agencies must follow a Companyapproved format. Upon request, we will provide you with approved pieces thatdiscuss our ratings. Any producer-prepared advertising that discusses our ratingsmust be submitted to and approved by the Companies prior to use. Risk–Based Capital. You may not make any statement nor use any advertisementthat contains information with regard to the Companies’ RBC Level or, with respectto any advertising referring to the Companies or their products, the RBC Level ofany other insurer. The NAIC has developed Risk-Based Capital (RBC) requirementsdesigned to examine the quality and quantity of an insurer’s surplus. The Life and/or Health RBC Model Act (the Act) provides that RBC standards were not intendedas a means to rank insurers generally. The Act also notes that, due to its confidentialnature, use of RBC information by any insurer, producer, broker or other personengaged in any manner in the insurance business would be misleading and istherefore prohibited. Guaranty Association Membership. You may not make any statement or useany advertisement that refers to the existence of a state insurance guarantyassociation for the purpose of selling any of the Companies’ products. Use ofsuch information constitutes unfair competition and an unfair trade practiceunder the laws of most states. Statistics. Statistics used in any advertisement shall be accurate and notmisleading in fact or by implication. The source of any statistics used in anadvertisement must be identified and shall be current. Vanishing Premiums. You may not make any statement (such as the policy willbe “self-supporting”) or represent in any way that premium payments will not berequired for each year of a life insurance policy in order to maintain the illustrateddeath benefit or that the life insurance policy will be “self-supporting.”Page 7 of 24
iii. Product StatementsIn addition to the disclosures and statements provided here, you must clearlyrepresent our products as life insurance or annuity products, as applicable.You may not make any representation regarding the past performance of theCompanies’ products other than the representations contained in the illustration,or represent that a product’s past performance is a reliable indicator of futureperformance. You should not refer to or describe fixed insurance products asinvestments, nor should the interest crediting on these products be compared torates of return for securities or other investment products.C. IllustrationsWith regard to the Companies’ products, you may only use illustration softwareapproved and issued by the Companies. Any use of illustration software other than thatapproved by the Companies is strictly prohibited. Illustrations include spreadsheets,calculations or presentations that reflect the death benefit, premiums or cash values.Supplemental Illustrations – If you prepare illustrated values using tools (e.g.,spreadsheets or software) not provided by the Companies and you intend to providethose illustrated values to prospective applicants during the sales process, you mustsubmit the illustrated values to the Companies for approval prior to use with prospectiveapplicants. This is a requirement irrespective of whether the output indicates thevalues are representative of the Companies’ products or not, with the exception ofillustrated values clearly denoted as being those of another insurance company. Forexample, a set of illustrated values that are not carrier distinct but are representativeof a life insurance policy must be submitted for review prior to being provided to aprospective applicant.If you use a sales illustration to solicit sales of the Companies’ products, the applicantmust receive a copy of the illustration. In addition, you may not: Provide an illustration without clearly indicating that the current interest rateillustrations are: (i) based on the respective Company’s current rate schedule, (ii)shown for illustration purposes only and (iii) not guaranteed. Provide an applicant with an incomplete illustration. Display the current interest rate illustration with such prominence as to render theguaranteed interest rate illustration obscure. Illustrate any of the Companies’ products without clearly identifying the productgenerically by the type of life insurance or annuity and the Company’s product name,if different.D. Suitabilityi. AnnuitiesMost states have enacted suitability statutes relating to life insurance and/orannuity products. Producers must comply with applicable state laws, rules andregulations governing suitability. Several states have promulgated, or are currentlyconsidering, enhanced suitability standards for annuities. It is your responsibilityPage 8 of 24
to comply with these state requirements as they arise. If you are a registeredrepresentative associated with a broker-dealer, you must comply with FINRAsuitability regulations and your broker-dealer’s suitability procedures.In addition, the NAIC Suitability in Annuities Transactions Model Regulation (theAnnuity Model Suitability Regulation) requires the following relating to annuities: In recommending to a consumer the purchase of an annuity or the exchange ofan annuity that results in another insurance transaction or series of insurancetransactions, the insuranc
broker-dealer, you must comply with FINRA advertising requirements and your broker-dealers advertising procedures. ii. Approval All advertisements referring to Minnesota Life, Securian Life or their products must be submitted to
