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Corporate profits?
Just taking a stab in the dark.
Once one gets sued, the rest will watch to see how bad it is for that carrier, and then adjust and respond accordingly.
501(k) plans are better than 401(k) plans??? TikTok garbage
- Thread starter DHK
- Start date
Corporate profits?
Just taking a stab in the dark.
Once one gets sued, the rest will watch to see how bad it is for that carrier, and then adjust and respond accordingly.
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Well, now, done with the right vehicle with the right company that is hardly a "scheme."
Regulators are post active in this industry. Wait for the complaint from the customer come directly and they will respond. They can not go on tik tok and take proactive action. In the Madoff case, I remember Boston SEC would not touch it because crime was occuring in NYC. In case of Tik Tok, crime is occuring on some Chinese server that hosts the ad. We will balance the budget 5 times before an action can be taken
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Even then, the carriers have so many disclaimers in their documents, numerous warnings & prohibited activities in their selling/marketing contracts. Not sure how carriers will be held to idiots on tik tok & you tube when no carrier employees were involved or carrier even mentioned or shown. Then add to it the idiots on these videos are sometimes not even licensed, but other idiots that are licensed send it as a link. Not sure how a carrier can be dragged in when the 1099 self employed person that is appointed with a dozen carriers makes vague videos. ......but then again, carriers tend to have deeper pockets
- Thread starter
- #25
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I'm sure you've heard that MassMutual is trying to do their part:
https://insurance-forums.com/commun...nal-memo-regarding-banking-strategies.110135/
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Independent Agents are authorized representatives of the carrier.
And as mentioned, many do speak about carrier specific products.
If you read the wording they use in Independent Agent contracts, it is a pretty broad scope if they choose to implement it that way.
If that marketing is being used to bring the carrier business..... they have legal authority to have a say in it per most indy contracts.
But that cuts both ways. What happens when an agent is making vides that dont mention a specific carrier.... but they are sending 70% of their biz to one single IUL carrier? And the "product features" used in the videos are specific to that particular carrier?
More importantly, how is a jury and judge going to see that? I can extort you without saying that Im extorting you.... crimes and violations are not dependent on those specific words being spoken.
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- 10,352
Its not tiktok doing the videos. Its agents. They are the bad actors in this situation.
They are licensed professionals who are making wildly inaccurate statements to the public.
Tiktok is just the main medium used. Youtube, Facebook, and many other social platforms are used to promote these false claims.
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Yeah, I stated that in subsequent posts.
But as a long term business model, its a horrible idea. Carriers already experienced this in the 90s with UL. They are well aware of the ramifications.... maybe thats why they are so certain in doing it all... hopefully this time its worse than last time. Doubtful.
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Some are. There are various "methods" of using the policy as a bank account for loans and lifestyle, etc.
The main issue though is how its often marketed. And how many green agents who dont understand the product go out to sell it after reading a book or a webinar and they are making inaccurate statements to clients.
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