Kansas Warns of Possible Advertising Violations by IMOs and FMOs
June 6, 2014 by The Lawson Firm, LLC.
he Kansas Insurance Department has released Bulletin 2014-1 (below), warning insurers of possible life insurance and annuity advertising violations by Independent Marketing Organizations (IMOs) and Field Marketing Organizations (FMOs).
Under Kansas law, life insurers are responsible for advertisements produced and distributed by third-party marketing entities. The purpose of the new bulletin is to “make clear” the Department’s position that this responsibility applies to the marketing activities of IMOs and FMOs. The Department notes that advertisements and marketing materials produced by IMOs and FMOs have exhibited potential violations of Kansas law including:
- Failing to identify the insurer when promoting products or product features;
- Information intended for the general public that includes apparent bait-and-switch tactics;
- Exaggerated and unsubstantiated product claims; and
- Producer recruitment, education, and training materials designed to be used as public advertising that contains incomplete, misleading, and/or deceptive information.
The Department encourages insurers to take steps to ensure compliance with Kansas’ life and annuity advertising laws and regulations including:
- Regular communications with IMOs and FMOs regarding advertising compliance requirements; and
- Active monitoring of IMO and FMO marketing and advertising activities, including agent recruitment and training efforts.
The Lawson Firm, LLC offers legal review of insurer advertising for compliance with applicable state and federal requirements.
