Melbourne, Florida · Serving clients statewide

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Michael P. Sapourn, JD, CIC, CRM
Annuities & Investments

Unsuitable Life Insurance and Investment Sales

The short answer

Agents and brokers must have reasonable grounds to believe a life insurance policy, annuity or investment is suitable for you before recommending it. If you were sold a product you did not understand or that did not fit your needs, the seller may be liable for your losses. Michael Sapourn is a licensed life agent and former investment adviser compliance officer.

The suitability standard

Mr. Sapourn has held a life insurance license for decades and spent years running the business operations and compliance departments for SEC-registered investment advisers. He knows the duties the law places on the people who sell these products.

Suitability is the appropriateness of a recommended life insurance product, annuity or investment once its risks and benefits are weighed against the purchaser’s:

  • Age
  • Assets, net worth and current holdings
  • Liquidity and income needs
  • Tolerance for risk
  • Financial objectives

When a sale goes wrong

Most agents and brokers try to act ethically, but some put their own interests ahead of their clients’. Agents and brokers must conduct appropriate due diligence before recommending certain investments or annuities. Failing to document their efforts to qualify you for the product exposes them to legal action.

If you believe a life insurance agent or broker sold you an investment you did not understand, that agent or broker may be liable for your losses. Mr. Sapourn has testified on the standard of care for agents who sell annuities to seniors and speculative investments to non-accredited investors. Do not wait until it is too late. Call to discuss your situation.

Frequently asked questions

What does suitability mean?

Suitability is whether a recommended life insurance policy, annuity or investment is appropriate for you once its risks and benefits are weighed against your age, assets, existing holdings, liquidity, income needs, risk tolerance and goals.

What should an agent document?

The information gathered about your finances and objectives, the analysis behind the recommendation, and the disclosures provided. Missing documentation can expose the agent or broker to liability.

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