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
"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
"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.