What You Need to Know About the FCC and TCPA Regulation Update in 2023
Insurance sales is a complicated and ever-changing industry, requiring agents to stay up to date on the latest regulations and policies. This is especially true when it comes to the Federal Communications Commission (FCC), which recently released a policy change that affects the Telephone Consumer Protection Act (TCPA). As such, it is essential for insurance agents to understand the implications of this new TCPA regulation and how it will affect their business.
The TCPA was established in 1991 to protect consumers from intrusive and disruptive telemarketing practices. It restricts the use of automated calls and text messages to consumers and requires companies to obtain “prior express consent” before making such calls. This means that companies must have a customer’s permission before making any automated calls or text messages.
The recent policy change, which goes into effect on July 20th, 2023, further tightens these restrictions. Companies must now receive “prior express written consent” before making any automated calls or texts. This means that companies must obtain a customer’s written permission before making any automated calls or texts. Additionally, the FCC has clarified that this consent must be from a customer’s “own hand” and cannot be obtained through a third party.
The implications of this policy change are significant for insurance agents. As agents, they are responsible for ensuring compliance with all applicable laws and regulations. This includes understanding the new TCPA policy and taking the necessary steps to ensure compliance.
The first step is to understand the policy change and update any existing processes and procedures to reflect the new requirements. Insurance agents should also take the time to review their customer database and contact information. Companies must obtain prior express written consent from each customer before making any automated calls or texts. This means that companies should have up-to-date information, including phone numbers and email addresses, on file.
The agents need to be informed of the potential consequences of failing to comply with the new regulation. For each infraction of the Telephone Consumer Protection Act, the FCC has the right to levy fines of up to $16,000. The prior fine for each infraction was $1,500.
As the insurance industry continues to evolve, it is essential for insurance agents to stay up to date on the latest regulations and policies. The policy change to the Telephone Consumer Protection Act is a reminder that compliance is an important part of being a successful insurance agent. By understanding the policy change and taking the necessary steps to ensure compliance, insurance agents can protect themselves and their customers.
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