SEC informational questionaire - phoney?

[Jane_Doe]

Hey guys,

I was just going thru my pile of mail and came across two questionaires (one for DH and one for me) from Nationwide (our life ins. is w/them). The cover letter staing that according to SEC regulations that they need to update info on our files. (NOTE- it is a universal life policy that includes a small amount of money set aside for future payments as policy price goes up - dumb, I know - please don't get on the soapbox on this one - I plan on dumping it and getting our money back out as soon as we hit the FI #)

Anyway, the point is the questionaire asks -ANNUAL SALARY & Household income, NET WORTH, and LIQuid Net Worth, plus Tax bracket! This is not any of their business and I will not be sending it in. And the back side asks questions about Risk Assessment and Investment Objectives! It really irks me that they use this excuse of mandatory update of info as an excuse to try and squeeze out private info from us. Reminds me of spam/phishing that you would expect on the internet. I think I may call our agent and give him a piece of my mind on this.

I'd better get back to my pile of paperwokr now but I just needed to vent! :P

Have a good day!

Jane

[cute fuzzy bunny]

Anything that says what happens if you dont send it in?

[MasterBlaster]

For those surveys I always tell em' that my income is under $10k and that my net worth is under $10k.

If you do that the telemarketers will never call you.

[ats5g]

Ask what "SEC Regulation" they are referring to. Any of the info they need to gather to sell you life insurance most likely should've been gathered at the time you bought the life insurance. Sounds like Nationwide is fishing for people to sell crap to.

After you get the regulation, you could always call the SEC, or at least email them, to see if this is legit.

- Alec

[Jane_Doe]

CFB-
Doesn't say anything about penalties for not sending it in.

MB- I'm tempted to do that, but then they still "win" and I just think its appalling.

Alec- I'm not sure I want to work that hard! Think I may just call over tomorrow and tell them I can cancel if they wish! That will get their attention! Not that I'm some big account but it is a small town office, and we know the agent pretty well - kids in school together, etc.

Will let you all know what happens - I was just so mad this am - so many people would just fall for this ploy!

Thanks for the replies ..............

Jane

[youbet]

If I'm not mistaken, certain info is requested to be on file to ensure any recommended investments are appropriate for you. I remember those forms, but it's been years and years since anyone stuck one in front of me.

[Nords]

Quote:

Originally Posted by Jane_Doe Not that I'm some big account* but it is a small town office, and we know the agent pretty well - kids in school together, etc.*

In that case I'd definitely ignore it.

I think there are two reasons for that questionnaire-- one is indeed the "customer profile" so that they don't put you in unsuitable investments. If you had sufficient net assets or sufficient annual income then you'd be an "accredited investor", presumed to be smart enough to buy all their exotic toxic waste derivative products only available to the "big guys".

The other reason is to determine your level of happiness. If you express the merest hint of satisfaction then the paperwork goes in your file. (I can't tell that anything happens or gets filed if you express dissatisfaction.) If someday you have a problem with the company that ends up in arbitration or litigation, then your paperwork is pulled, the company spreads their hands and adopts a hurt expression, and says sympathetically "Gee, we don't know what happened. Jane said she was happy in this letter, so considering her behavior today we can only presume that she's losing control of her mental faculties and needs us to sell her more long-term care insurance!"

[cute fuzzy bunny]

Quote:

Originally Posted by Jane_Doe Doesn't say anything about penalties for not sending it in.

Is it still "heating season" where you live?