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Iowa Issues Bulletins on Activities of Advisors

Iowa Insurance Commissioner Susan Voss has issued two bulletins detailing the permitted activities for insurance-only and securities-only advisors. Among other things, Insurance Bulletin 11-4 and...
June 29, 2011

Iowa Insurance Commissioner Susan Voss has issued two bulletins detailing the permitted activities for insurance-only and securities-only advisors. Among other things, Insurance Bulletin 11-4 and Securities Bulletin 11-1 state that insurance-only advisors can discuss risk tolerance, financial situation, and needs with clients but not their individual securities portfolio, while securities-only advisors can discuss risks associated with their individual securities portfolio but cannot discuss the pros and cons or the cost versus benefits of insurance. Unlicensed persons authorized to provide limited insurance-only advice and advisors with both insurance and securities licenses also receive guidance in the bulletins.

The bulletins aim to address source of funds issues that have emerged since the state adopted an annuity suitability rule similar to the National Association of Insurance Commissioners' Suitability in Annuity Transactions Model Regulation of 2010, says Voss.

Read more about the Iowan bulletins: Iowa Draws Line in the Sand for Advisors (Insurance NewsNet 6/24/11)