Attachment II: Living Trust Mills &
Pretext Interview Notice (Continued)
Pretext Interviews (Continued)
Acts (1) through (3) are inherent in the operation of a trust mill, and insurers and advisers found to have used or authorized the use of these practices will be the subject of appropriate sanctions under the Insurance Information and Privacy Protection Act.
While neither the Business and Professions Code's Unfair Competition Law nor the Insurance Information and Privacy Protection Act are limited in their application to living trust mills, the prevalence of such schemes in current marketing practices is cause for the Insurance Commissioner to request advisers and insurers to conduct a focused identification and review of each marketing program in which they are involved, for the purpose of assessing their compliance with the above cited statutes. Particular attention should be given to any program for annuity sales in which the insurer or agent states or infers that they possess particular expertise in the areas of law, finance or financial planning. Offending programs should be corrected immediately, and remedial action should be taken. Remediation should include allowing purchasers that were unlawfully solicited to rescind their contracts.
Thank you for your consideration in this matter.
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