Dear Producer,
For more than 100 years, Mutual of Omaha has earned the trust of customers by doing business the right way and helping them protect what they care about and achieve their financial goals. That success has only been possible because of the thousands of outstanding producers who have represented our company with professionalism, integrity, and a genuine commitment to serving the best interests of their clients.
Every day, producers across our distribution system help families protect what matters most. They conduct needs-based conversations, provide honest recommendations, and build lasting relationships founded on trust. We are grateful for these partnerships and deeply appreciate the professionalism demonstrated by the overwhelming majority of producers who represent Mutual of Omaha.
The purpose of this communication is not to address those producers. In fact, it is intended to protect them.
Strong ethical standards create a level playing field where customers are treated fairly, quality business is rewarded, and producers who do things the right way are not disadvantaged by the actions of those who choose a different path.
Recently, Mutual of Omaha has identified concerning sales practices and business patterns within portions of the life insurance marketplace, particularly within segments of the Simplified Issue business. While these concerns involve a minority of producers, they are serious enough to require additional attention and action.
We have identified instances of conduct that may violate insurance laws, regulatory requirements, producer contractual obligations, and Mutual of Omaha’s Code of Conduct. In some cases, these activities appear to have evolved as business workarounds, recruiting strategies, administrative shortcuts, or perceived operating efficiencies. Regardless of how they originated, practices that circumvent company requirements, misrepresent customer information, or place production ahead of customer interests are unacceptable and will not be tolerated.
Examples of Prohibited Conduct include, but are not limited to:
- Misrepresenting information during the sales, application, underwriting, licensing, contracting, or appointment process, including providing false, incomplete, or misleading information to customers, Mutual of Omaha, regulators, or other third parties.
- Misleading customers for the purpose of replacing existing coverage, including making false, deceptive, or inappropriate statements regarding another carrier, an existing policy, premiums, benefits, underwriting requirements, policy provisions, or the need to replace coverage when replacement is not in the customer’s best interest.
- Participating in systematic replacement activity that prioritizes production over customer interests, including sales models or practices designed to target policyholders primarily for replacement opportunities rather than conducting an individualized, needs-based analysis and recommendation.
- Failing to properly document replacement transactions, including not completing required replacement forms, disclosures, acknowledgements, or other regulatory and company requirements when replacement activity occurs.
- Circumventing Mutual of Omaha’s transfer, contracting, appointment, or eligibility requirements, including the use of “placeholder” arrangements or other practices designed to temporarily position business under one producer while another individual waits to satisfy transfer restrictions, appointment eligibility requirements, or other company rules.
- Submitting applications that do not represent a legitimate customer need or intent to maintain coverage, including business patterns involving excessive early-duration policy lapses, minimal premium collection, or other indicators that the transaction was not intended to provide meaningful long-term customer protection.
- Providing or facilitating financial inducements to place coverage, including paying premiums on behalf of an insured, participating in arrangements intended to artificially place, issue, or maintain policies, or rebating commissions.
- Coaching, influencing, or directing applicants to provide inaccurate information during the application process, underwriting interviews, health questions, or other customer interactions.
- Misrepresenting who solicited, sold, or submitted the business, including submitting business on behalf of another producer, allowing another individual to use your appointment, producer number, or credentials, or concealing the identities of those involved in the transaction.
- Compensating, rewarding, or involving individuals who are not properly licensed, appointed, authorized, or eligible to participate in the transaction, including individuals who cannot be appointed with Mutual of Omaha.
- Participating in any arrangement intended to conceal the true nature of a transaction or that violates insurance laws, regulatory requirements, producer contractual obligations, and/or Mutual of Omaha’s Code of Conduct.
A practice does not become acceptable simply because it is common within a particular organization, agency, or segment of the industry. Certain activities may have developed over time as business workarounds, recruiting strategies, administrative shortcuts, or perceived efficiencies. However, when those practices violate insurance laws, regulatory requirements, contractual obligations, or Mutual of Omaha’s Code of Conduct, they are unacceptable and, in some instances, fraudulent.
Our expectation is straightforward:
- Every recommendation must be made in the customer’s best interest.
- Every application must contain complete and accurate information.
- Every replacement transaction must be properly documented and compliant with all applicable requirements.
- Every producer involved in a sale must be appropriately licensed, appointed, and authorized.
- Every customer interaction must be conducted honestly, professionally, and ethically.
- Every transaction must comply with insurance laws, carrier requirements, and Mutual of Omaha policies.
To protect customers, ethical producers, and the integrity of our business, Mutual of Omaha is strengthening its oversight and monitoring efforts.
These efforts include:
- Enhanced review of application quality and underwriting activity.
- Increased monitoring of persistency, lapse, and replacement trends.
- Expanded fraud detection and investigative capabilities.
- Additional oversight of contracting, licensing, and appointment activity.
- Increased review of sales practices and business patterns that may indicate customer harm or regulatory risk.
- Greater coordination among Sales, Compliance, Operations, Legal, and Risk Management teams.
Mutual of Omaha and our field partners have built a reputation for putting customers first, conducting business with the highest ethical standards, and ensuring integrity in every transaction. The trust we have earned over more than a century is one of our most valuable assets and is fundamental to our continued success.
To protect that trust, Mutual of Omaha maintains a Zero Tolerance stance toward inappropriate sales practices, fraud, misrepresentation, violations of company policies, and conduct that places customer interests at risk.
Whether intentional or the result of an inappropriate business practice, workaround, or shortcut, conduct that violates insurance laws, regulatory requirements, contractual obligations, or Mutual of Omaha’s Code of Conduct will be addressed swiftly and decisively.
Depending on the nature, severity, and circumstances of the matter, actions may include:
- Additional training, remediation, or corrective action plans.
- Enhanced monitoring, supervision, and business reviews.
- Restrictions on new business submissions.
- Suspension or removal of sales privileges.
- Termination, for cause, of producer and/or agency contracts.
- Recovery of commissions or other compensation where permitted.
- Reporting to state insurance regulators and licensing authorities.
- Referral to law enforcement or other governmental agencies when appropriate.
Our objective is not simply to identify and address inappropriate conduct after it occurs. Our goal is to work alongside our agency partners and producers to prevent these issues, protect customers, and preserve the integrity of the marketplace. However, when violations are identified, Mutual of Omaha will take the actions necessary to protect our customers, our distribution partners, and our company.
The overwhelming majority of our producers exemplify the professionalism, integrity, and customer-first mindset that have defined Mutual of Omaha for generations. These standards are intended to protect those producers and ensure a fair and level playing field for all. Those producers deserve to compete in a marketplace where the same standards apply to everyone.
By working together, we can protect customers, strengthen confidence in our profession, preserve the integrity of our distribution system, and continue building on the trust that Mutual of Omaha and its producers have earned over generations.
My ask of you is that you continue to partner with us and the industry to help identify and remove these sales practices in the market. If you see something, please say something.
To report any suspected inappropriate or fraudulent sales practices, please contact our Code of Ethics & Conduct Team at:
- Fraud Hotline: 800-936-9396
- Email: siu@mutualofomaha.com
- Fraud referral form: https://www.mutualofomaha.com/support/fraud
Thank you for your partnership, your professionalism, and your commitment to doing the right thing for the customers we serve.
Sincerely,
Jim Duff
SVP, Brokerage Sales
Mutual of Omaha
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