For use by AICP conference attendees only. Not for use with the public. Association of Insurance Compliance Professionals May 17, 2013 Erin Mirza, Insurance Examiner-Senior State of Wisconsin, Office of the Commissioner of Insurance (OCI) Life and Health Section Susanne Spear, Consultant, Marketing Materials Compliance Compliance/Best Practices, Northwestern Mutual Advertising Compliance

For use by AICP conference attendees only. Not for use with the public. Introductions Erin Mirza Insurance Examiner-Senior State of Wisconsin, Office of the Commissioner of Insurance (OCI) Susanne Spear Consultant, Marketing Materials Compliance, Compliance/Best Practices Northwestern Mutual

For use by AICP conference attendees only. Not for use with the public. Agenda – ‘Look at Life From Both Sides’ Regulator Perspective – What We Don’t Like to See – What We Do Like to See Industry Perspective – Life Company Best Practices Strategies and approaches

For use by AICP conference attendees only. Not for use with the public. Regulator Perspective What We Don’t Like to See Lack of oversight of agents Lack of Procedures – Typically results in non-compliant practices Section , Wis. Stat - Effect of Agent’s Appointment on Insurer

For use by AICP conference attendees only. Not for use with the public. When you say you do have a social media presence, but yet there is no record in your files (tweets, screenshots, etc.) of your activity. Regulator Perspective What We Don’t Like to See

For use by AICP conference attendees only. Not for use with the public. Incomplete Advertising Files – Section Ins 2.16(3)(a)1,a, Wis. Adm. Code (life) – Section Ins 3.27(5)(a)1, Wis. Adm. Code (health) Regulator Perspective What We Don’t Like to See

For use by AICP conference attendees only. Not for use with the public. When you say you don’t have a social media presence, but yet we find your Facebook page without even ‘liking’ it or logging in… Regulator Perspective What We Don’t Like to See

For use by AICP conference attendees only. Not for use with the public. Missing Form numbers – Section Ins 2.16(30), Wis. Adm. Code (life) – Section Ins 3.27(28), Wis. Adm. Code (health) Regulator Perspective What We Don’t Like to See

For use by AICP conference attendees only. Not for use with the public. Manner and extent missing in files – Manner = distribution type, i.e. print, internet, TV, billboard, etc. – Extent = when the advertisement will be used, what geographical area will it be sent, etc. Lack of sources for statistical information – Section Ins 2.16(16), Wis. Adm. Code – Section Ins 3.27(20), Wis. Adm. Code Regulator Perspective What We Don’t Like to See

For use by AICP conference attendees only. Not for use with the public. Agents understanding insurer’s policies Accurate and complete information being provided in order to make informed decisions Consumer protection from false or misleading claims Regulator Perspective What We Do Like to See

For use by AICP conference attendees only. Not for use with the public. Strategies and Approaches Compliance Best Practices Strategy: Protection of the company’s reputation through business and compliance integration – Business partnering (product lines, field training, marketing and communications) – Liaison teams; Departmental Marketing Materials Coordinator Marketing promotes pre-approved materials and supports best practices Communications works with Compliance Compliance does not approve in a vacuum – Consistent messaging, branding

For use by AICP conference attendees only. Not for use with the public. Strategies and Approaches Make compliance easier (not ‘compliance light’ ) – E-forms – Marketing Portal (intranet access ‘behind the scenes submission) – Social Media Portal – Access to pre-approved materials and published policies – Help lines in addition to sales support (marketing, communications, compliance) Culture of compliance Rep to Client – ‘I gotta show this to you’ (embarrassed) – ‘To help ensure that you understand’ (distinguishes )

For use by AICP conference attendees only. Not for use with the public. Strategies and Approaches Social Media is subject to the same regulatory and retention requirements, privacy guidelines, and existing company policies that govern all facets of a rep’s business Social Media must not circumvent Do Not Call Social Media Goals Differ – Corporate – promote the brand – Representative – promote representative; engage clients

For use by AICP conference attendees only. Not for use with the public. Strategies and Approaches Growth requires increasing the number of feet on the street Current recruits grew up with technology and social media Policy for field use Required Training, Registration, use of Social Media Portal Approved social media sites Resources for ongoing questions Social Media team for reviews

For use by AICP conference attendees only. Not for use with the public. Strategies and Approaches Social Media Clearly defined boundaries to avoid misunderstanding an ‘I thought that it meant….’ Definition of ‘business use’ - any business related information beyond a simple listing Template and custom content Define usage for each approved site (static and interactive) Don’t refer to specific products or services by name Don’t refer to investment specific financial concepts

For use by AICP conference attendees only. Not for use with the public. Strategies and Approaches Social Media All recommendations/testimonials related to character as a business professional or financial services practice posted on sites other than LinkedIn must be removed LinkedIn Recommendations may be displayed after approval (for those reps permitted) If you receive a complaint through social media, immediately inform your field supervisor. Do not remove it.

For use by AICP conference attendees only. Not for use with the public. Strategies and Approaches Rep understanding Promotion of pre-approved – Awareness, Accessibility, Resources Outreach to Field Supervisors/Field shadowing program Communication of policies, access to policies (ease of access) Policy/process for submission, review and approval of self- created – Description of material content, type, intended use, and audience

For use by AICP conference attendees only. Not for use with the public. Help ensure consumers are protected from false or misleading claims Strategies and Approaches Field Created Materials Language/Content Guidelines ‘If it shows, you must disclose’ substantiate the claim ‘Guaranteed’ explain the limits of the guarantee Clarify what is not guaranteed Fair and balanced – ‘provides lifetime income and has no liquidity’ ‘lower taxes’ not permissible Strategy designed to manage the impact of taxes – permissible Peace of Mind – context

For use by AICP conference attendees only. Not for use with the public. Strategies and Approaches Early Intervention New producers who are most likely to leverage technology and social media, are also the most likely to have limited understanding of advertising regulations/compliance Nowadays, publication can escalate from local to national with a mouse click Veteran producers may be aware of advertising regulations/policies, but are more likely to be on a learning curve relative to the social media business applications

For use by AICP conference attendees only. Not for use with the public. Questions?