- 14,809
Having received a call from an agent who's client has threated legal action over the sale of an AIM product I thought this statement from the FL DOI was relevant.
What I've been hearing is "I can't see how I'm responsible since I myself was duped." This explains an agent's liability for selling any product that turns out to be bogus:
Verify Before You Sell!
"As an insurance professional you are responsible for conducting necessary due diligence to avoid putting your clients at risk. The excuses, “I thought it was legitimate” and “I was fooled and am also a victim,” are not acceptable defenses. When verifying an insurance company’s license or whether an investment is registered, make sure that you have the correct and complete name as some scams will use names similar to licensed companies and registered investments to create confusion. Don’t do it; do not allow yourself to become another victim. Verify before you sell!"
The bottom line is if you're selling any product - especially these min-meds - that later turn out to be bogus you are risking your license, legal liability and your E&O DOES NOT COVER the sale of illegal products.
What I've been hearing is "I can't see how I'm responsible since I myself was duped." This explains an agent's liability for selling any product that turns out to be bogus:
Verify Before You Sell!
"As an insurance professional you are responsible for conducting necessary due diligence to avoid putting your clients at risk. The excuses, “I thought it was legitimate” and “I was fooled and am also a victim,” are not acceptable defenses. When verifying an insurance company’s license or whether an investment is registered, make sure that you have the correct and complete name as some scams will use names similar to licensed companies and registered investments to create confusion. Don’t do it; do not allow yourself to become another victim. Verify before you sell!"
The bottom line is if you're selling any product - especially these min-meds - that later turn out to be bogus you are risking your license, legal liability and your E&O DOES NOT COVER the sale of illegal products.