Maine Department of Professional and Financial Regulation

05/10/2024 | Press release | Archived content

Amended Consent Order (Bankers Life and Casualty Company and BLC Financial Services, Inc. No. 11 7365 02)

State of Maine
Office of Securities
121 State House Station
Augusta, Maine 04333-0121



IN RE:

Bankers Life and Casualty Company and BLC Financial Services, Inc. No. 11-7365-02
Amended Consent Order

WHEREAS, following a multi-jurisdictional investigation of Bankers Life and Casualty Company ("Bankers Life") and BLC Financial Services, Inc. related to certain unlicensed broker-dealer and investment adviser activities, the parties entered a Consent Order, Docket No. 11-7365, dated March 29, 2012 ("2012 Consent Order"); and

WHEREAS, since the 2012 Consent Order was executed, Bankers Life has made substantial efforts to revise its business practices to improve compliance;

NOW, THEREFORE, the 2012 Consent Order is amended by removing current Paragraph 11 of Section III of the 2012 Consent Order and replacing it in its entirety with the following:

  1. Bankers Life shall comply with the following practices:


  1. An insurance producer who is not licensed as an investment adviser representative or a broker-dealer agent ("Insurance Producer") may gather all financial information necessary to complete a Bankers Factfinder or similar document or tool required to determine insurance product suitability, including by obtaining copies of a consumer's statement(s) for securities products or accounts as part of the insurance factfinding process.
  2. An Insurance Producer may have general discussions concerning the differences between insurance and securities products in terms of features and risks, but must explain that the Insurance Producer is not licensed to provide investment advice or sell securities products.
  3. An Insurance Producer may not:
    1. Make recommendations or provide advice concerning a consumers specific securities products;
    2. Compare a consumer's specific securities or investment performance with other financial or investment products such as annuities or life insurance;
    3. Recommend that any securities product be liquidated or used to fund an annuity or life insurance product; or
    4. Use any terms or titles that could suggest to a consumer that the Insurance Producer is licensed to provide investment advice or sell securities products.


  5. An Insurance Producer may provide a consumer with contact information for a person properly licensed to provide investment advice or sell securities products. Upon a consumers request, an Insurance Producer may arrange for the consumer to meet with a person properly licensed to provide investment advice or sell securities products. An Insurance Producer may attend any such meeting if:
    1. The purpose of the meeting is, at least in part, to discuss insurance products;
    2. The Insurance Producer clearly states during the meeting that he or she is not licensed to provide investment advice or sell securities products; and
    3. The Insurance Producer does not engage in any activities that require a securities license.


  7. Bankers shall train its Maine-licensed Insurance Producers in accordance with this Amended Consent Order within thirty (30) days of the execution of this Amended Consent Order and, prospectively, within thirty (30) days of licensure for newly licensed Maine Insurance Producers.
  8. No commissions or other compensation derived from securities transactions shall be paid to or split with an Insurance Producer.


The 2012 Consent Order shall remain in full force and effect in all other respects.

IT IS HEREBY ORDERED on this 10th day of May, 2024.

Jesse A. Devine
Jesse A. Devine
Securities Administrator

CONSENT TO ENTRY OF AMENDED CONSENT ORDER

Bankers Life states that no promise of any kind or nature whatsoever that is not reflected in this Amended Consent Order was made to it to induce it to enter into this Amended Consent Order and that it has entered into this Amended Consent Order voluntarily.



Bankers Life expressly acknowledges that other than the revision of Paragraph 11, Section III, the 2012 Consent Order shall remain in full force and effect.

William D. Fritts, Jr. represents that he has been authorized to enter into this Amended Consent Order on behalf of Bankers Life and Casualty Company.

Bankers Life and Casualty Company

By: William D. Fritts, Jr.
Title: Senior Vice President
Date: May 10, 2024

Title: Senior Vice President