by John Darer® CLU ChFC MSSC RSP CLTC
A Califiornia based structured settlement broker posts details of California Life & Health Guaranty Association coverage on his blog website, despite the prohibitions set forth expressly under California law,
Despite what I'm sure were good intentions from this pillar of the structured settlement industry, here''s what the law says:
California § 1067.17 “Use of existence of association for purpose of sales, solicitation, or inducement to purchase insurance; summary document; disclaimer; contracts not covered by association”(a) No person, including an insurer, agent, or affiliate of an insurer shall make, publish, disseminate, circulate, or place before the public, or cause directly or indirectly, to be made, published, disseminated, circulated, or placed before the public, in any newspaper, magazine, or other publication, or in the form of a notice, circular, pamphlet, letter, or poster, or over any radio station or television station, or in any other way, any advertisement, announcement, or statement, written or oral, which uses the existence of the California Life and Health Insurance Guarantee Association for the purpose of sales, solicitation, or inducement to purchase any form of insurance covered by the California Life and Health Insurance Guarantee Association Act".
I really hate being a brat about this, but if it was OK to advertise it then why the law in the first place? I did not write the law. While the law does state is "that this section shall not apply to the California Life and Health Insurance Guarantee Association or any other entity which does not sell or solicit insurance" the structured settlement broker in question clearly does solicit insurance.
While banks can tout FDIC coverage, there has been a long standing prohibition on insurance agents and brokers discussing comparable consumer protections. It is an inconvenience for sure. The structured settlement watchdog recently obtained an opinion from the New York State insurance department which said that even a powerpoint on the subject, posted on LinkedIn by another industry colleague, with disclaimers that it could not be used in the solicitation of insurance, was unlawful.