Jacobs: New law will protect seniors from fraud

Legislation sponsored by Senator Mike Jacobs

(D-Moline), which will protect seniors from fraudulent insurance

policies and insurance sales people, has been signed into law by

Governor Quinn.

"I sponsored this legislation to prevent insurance sales people from

engaging in deceptive practices," stated Senator Jacobs, a member of the

Senate Insurance Committee.  "Under this new law, insurance companies

will no longer be able to falsely claim special certification to lure

senior clients to their businesses."

Senate Bill 1607 is intended to prevent insurance companies, or those

who actually sell or negotiate insurance policies from using a

certification or credential in a way that misleads senior citizens.  In

addition, this measure will makes it a crime to deceive seniors so they

believe that the insurance producer has "special" qualifications

relating to selling life insurance them that does not really exist.

This new law will penalize, for example, any fake certification or

professional designation.  This also covers any type of certification or

professional designation that was simply "purchased" as a marketing

ploy, or any misrepresentation of background or qualifications.

A violation of this new law is considered a deceptive act under the

Illinois Insurance Code. This allows the Department of Insurance to hold

a hearing on the alleged deceptive act and potentially issue a cease and

desist order against the insurance producer, essentially shutting them

down.

"It is important that seniors are not misled by false information when

making the important decision of whether to buy life insurance or any

other annuity products," stated Senator Jacobs.