Optima Financial has become a leader in the insurance industry, not only by offering leading products and services, but by a commitment to integrity in our work. We are proud of our licensed insurance professionals that have contributed to this legacy.
We continue to be diligent in our efforts to be compliant and operate ethically in every respect. To encourage a compliant culture, we expect our insurance professionals to adhere to the following guidelines:
- Comply with both the letter and the spirit of all national, state, and local laws and regulations, including those related to insurance, privacy, telecommunications, and the USA PATRIOT Act. Stay abreast of carriers’ anti-money laundering policies and things to look for to detect fraudulent activity.
- Follow all suitability requirements. Thoroughly and accurately complete all suitability paperwork required by carriers. When determining suitability of a product, be familiar with the client’s overall financial situation, including age, assets and liabilities, income and expenses, investment experience and objectives, intended use of the policy, time horizon, liquidity needs, source of funding, risk tolerance, tax status, costs and benefits of any replaced financial product, surrender charges or any other penalties or costs imposed, and current or anticipated changes to living circumstances. Make recommendations solely based upon your assessment of the best interest of the client.
- Submit all advertising materials to carriers for compliance approval. Do not use any materials prior to carrier approval or after expiration of the carrier’s approval. This includes, but is not limited to advertising in any form, websites, mailers, seminar materials, and any agent-created sales materials or demonstrations.
- Be thoroughly familiar with the features of any product being sold. Ensure that clients understand the relevant features of any product they purchase, particularly any features that could be perceived as negative, such as surrender charges, market value adjustments, or the ability of the carrier to modify premium rates, charges, fees, or elements of the interest crediting formula after issue.
- Exercise caution when replacing insurance policies. Agents should be aware of the increased regulatory scrutiny placed on replacements of policies. A detailed summary should be maintained in the client file to evidence the reason for the replacement and how it is in the best interest of the client.
- Do not provide legal, investment, or tax advice.
- Maintain orderly and detailed client files.
- Avoid using professional designations or descriptions that misrepresent or exaggerate your expertise. For example, if you are a licensed insurance professional and do not hold a securities license, do not use a title such as “financial advisor,” “financial planner,” or “investment advisor.” Consult with each carrier for a list of acceptable and unacceptable professional titles and designations.
- Maintain the level of errors and omissions insurance coverage required by each carrier.
- Treat competition fairly. Do not attempt to obtain a sale by the use of deceptive or unfair marketing practices.