Primary Legal Foundations
Life insurance agents must be licensed under each state's insurance code, which sets qualifications, continuing‑education requirements, and disciplinary procedures.
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Key Statutes and Regulations
Most states adopt the National Association of Insurance Commissioners (NAIC) Model Law, providing uniform standards for licensing, market conduct, and fiduciary duties.
Federal laws also apply, notably the Truth in Lending Act, Gramm‑Leach‑Bliley Act, and anti‑money‑laundering rules, which govern disclosures, privacy, and reporting.
Consumer Protection Obligations
Agents must deliver clear policy illustrations, disclose commissions, and avoid deceptive sales practices as mandated by state unfair‑trade statutes and the Federal Trade Commission's guidelines.
Continuing Education and Discipline
After initial licensure, agents must complete state‑approved continuing‑education courses to maintain competency and compliance.
Violations can trigger fines, license suspension, or revocation by state insurance departments.
Comparative Overview
| Jurisdiction | Key Requirement | Enforcement Body |
|---|---|---|
| State Insurance Code | Licensing, CE, market conduct | State Insurance Department |
| NAIC Model Law | Uniform standards, fiduciary duties | State regulators (adopted) |
| Federal Laws | Disclosure, privacy, AML | FTC, CFPB, FinCEN |