BUSINESS PRACTICES and COMPLIANCE GUIDE

1 BUSINESS PRACTICES AND COMPLIANCE GUIDE 02/14/2017 BUSINESS PRACTICES and COMPLIANCE GUIDE Transcript Welcome to the Nationwide Life Companies BUSINESS PRACTICES and COMPLIANCE GUIDE . Click next to begin. Welcome! You have an important role to play, not only in the success of your BUSINESS , but that of the Nationwide Life Insurance Company and Nationwide Life and Annuity Insurance Company, collectively known as the Nationwide Life Companies. The Nationwide life companies distribute financial services products and solutions through Insurance Professionals, like you.

2 And, in order to be successful, you have to understand the regulatory requirements and how the requirements impact your BUSINESS . The BUSINESS PRACTICES and COMPLIANCE GUIDE , or BPCG, can help you understand both of these! But, what is the BPCG? The BPCG establishes policies to achieve COMPLIANCE with state and federal rules and regulations and to detect and prevent violations of those rules and regulations and the internal policies and procedures of the Nationwide Life Companies. It is a GUIDE to conduct your daily insurance BUSINESS . Let s get started!

3 In this lesson, you will learn how to do BUSINESS with Nationwide Life Companies in a compliant manner, including: The guidelines and expectations outlined in the BUSINESS PRACTICES and COMPLIANCE GUIDE ( BPCG ) And also about the marketing concepts or sales activities that are considered best PRACTICES at Nationwide, such as understanding prohibited activities. Let s talk about the BPCG GUIDE first. Click next to begin. There are many topics within the GUIDE designed to help you with your daily insurance BUSINESS . We will learn about each one through a scenario.

4 We will start with Licensing and Appointments. Click next to begin. Listen to the scenario and then answer the question on the right. BUSINESS PRACTICES AND COMPLIANCE GUIDE 02/14/2017 Jenna has a valid Ohio state insurance license. And, she is appointed to sell Nationwide Life products. Can Jenna solicit insurance BUSINESS for Nationwide in Ohio? You can also read this policy, by selecting the blue icon on the right. Then, answer the question. Yes! Jenna has a valid state insurance license in Ohio and is also properly appointed with Nationwide.

5 Each state issues its own insurance licenses for specified line(s) of BUSINESS , such as life, accident and health, variable contracts, and long-term care. Let s build on our scenario. A client refers Jenna to a family member named Sam. Sam lives in Indiana. Can Jenna discuss a specific life product with Sam? That is correct. If Jenna would like to discuss a specific life product with Sam, she would need a non-resident Indiana license. She already has a valid Ohio license, which is in her resident state. There is one last section to this scenario.

6 Jenna has an appointment in Indiana due to her previous employment with another agency. Will Jenna s appointment with a previous employer allow her to discuss a Nationwide Life Product with Sam? That s right. Jenna s appointment with a previous employer is not valid since she no longer works there. Once an Insurance Professional leaves an agency, he or she must obtain new appointments through the Nationwide Life Companies. Great job! Now, try this question. Once Jenna has a valid license and has been appointed by Nationwide is she a permanent agent?

7 Nationwide reserves the right to terminate the appointment for any violation of the policies or procedures. You can find more about termination in Section of the BPCG. BUSINESS PRACTICES AND COMPLIANCE GUIDE 02/14/2017 That was a lot of information. Make sure that you: Are appropriately licensed in every state in which you conduct insurance BUSINESS Are licensed in the state where solicitation occurs and where the application is completed and executed Maintain a valid insurance license in your resident state as well as a non-resident license in any other state(s) as appropriate And, that you re appointed with Nationwide The next policy we are going to learn about is Professional Designations.

8 Click next. In this scenario, meet Joe. Joe would like to add professional designations to his marketing materials to help solicit BUSINESS . However, depending on the state, or states, that Joe is licensed in; his designations may or may not be approved for use. Let s learn more. In this scenario, Joe has a valid state insurance license in Pennsylvania. And, He has completed all requirements for the Chartered Life Underwriter, or CLU designation and CLU is approved in Pennsylvania. Can Joe use this designation on his materials? To read this policy, select the book icon.

9 Then answer the question. Joe must comply with the applicable state laws and regulations regarding professional designations in his state. Since the CLU designation is approved in Pennsylvania, and Joe has earned the designation, he can use it for marketing purposes and in conversations. Joe is also a certified financial planner and has a CFP professional designation. He has delayed completing the continuing education requirements of the CFP designation. Since he is so close to completing the courses, can Joe use the CFP designation in his marketing materials and conversations?

10 BUSINESS PRACTICES AND COMPLIANCE GUIDE 02/14/2017 No. Joe must be current with the designations continuing requirements and cannot use a designation in a false manner. He may be subject to disciplinary action by the Nationwide Life Companies including, but not limited to, termination of your appointment with Nationwide. Remember the following: Make sure that your professional designation is legal in the state you are licensed in before using it. Do not use a professional designation unless you have completed all requirements and are current with the designations continuing requirements.