Agent fined by New Jersey Department of Insurance for postcard mailer

By Roccy Defrancesco

The Wealth Preservation Institute


Sending postcards to prospect for new clients is something that’s been a staple in the insurance industry for years. As a general rule of thumb, the scarier the content in a postcard, the higher the response rate.

Most advisors do not send out or create their own mailers. They use one of the many postcard mailer companies in the industry. Sometimes, that means using an IMO’s internal system, or there are many independent mailing companies that just send mailers with no vested interest in the products sold.

When agents use a mailer sent out by what they believe is a firm that “specializes” in this strategy, they often assume the firm is giving them tested content. By tested content, I mean content that has proven to generate a high response rate and content that is compliant (i.e., won’t get the agents in trouble).

Trouble is here

I just got my hands on an agent’s settlement with the New Jersey Department of Insurance (DOI) where he has agreed to pay a $2,500 fine for sending a postcard mailer that the DOI believes violates the state’s solicitation laws.

Guess where the agent got the postcard from? Yep, a firm that specializes in sending literally tens of thousands of postcards for insurance agents every year. The agent thought he was using a postcard that had been tested and wouldn’t get him in trouble. Boy, was he wrong.

Here's the postcard that caused all the trouble:



What’s the point of this article? To warn you.

Many agents who are reading this may be sending postcards that could get them into trouble with their state DOI, they just haven't had a complaint made about them or come under investigation yet.

You know what they say: The times they are a-changin'. It’s getting harder and harder to solicit clients without having complaints from those you are soliciting, and now you must deal with the added real worry of having the DOI investigate you and potentially fine you.