Springfield, IL, August 27-A news release on investment fraud scams issued yesterday by a state securities regulator group grossly misidentifies the perpetrators as independent insurance agents, says Mike Tate, COO of the Professional Independent Insurance Agents of Illinois (PIIAI).

Tate responded to a "Top 10" list of scams released by the North American Securities Administrators Association (NASAA) that cites the illegal sale of securities by unlicensed individuals as the number-one concern. The story highlights scams in which insurance agents, investment advisers and accountants are selling high-yield, short-term investment products that are in fact fraudulent.

Following is a statement by Tate responding to the NASAA release:

"While we strongly support the state securities regulators' efforts to prosecute perpetrators of investment fraud, it is doubly important that the real purveyors of these crimes are accurately identified. Consumers cannot fully understand the threat to their financial security if they do not have an accurate identification of the perpetrators.

"Independent insurance agents, who are predominantly providers of property-casualty policies, such as homeowners, auto and commercial liability products, are not engaged in investment fraud. It is a very small number of life insurance agents or brokers who are selling these products.

"The term 'independent insurance agent' has distinct meaning and purpose for consumers, insurance industry officials, industry regulators and political leaders. It refers to insurance professionals who primarily offer their customers property-casualty insurance coverages, have contracts with multiple companies and own their book of business.

"The broad misuse of the term 'independent insurance agent' lumps honest and reputable independent insurance agents with the purveyors of these reprehensible schemes. It is a disservice to mislead millions of people and injure the credibility of thousands of trustworthy small businesspersons by incorrectly identifying perpetrators of these acts."

"The 1,500 independent insurance agencies and their employees represented by the Professional Independent Insurance Agents of Illinois are-by and large-small business owners providing property-casualty or mainstream life, health and retirement coverages.

"Less than 1 percent of independent property and casualty agents hold National Association of Securities Dealers series 6 and series 7 securities licenses-the proper licensing to sell promissory notes. Further, less than 1 percent of IIABA member agency revenues are generated from the sales of securities products, according to the 2000 Agency Universe Study, the most respected and comprehensive demographic profile of the domestic independent insurance agency distribution system.

"What's more, the Independent Insurance Agents and Brokers of America (IIABA), our national affiliate, has researched the backgrounds of individuals singled out in previous news stories and none of them are IIABA or PIIAI members, and only two held a property-casualty license among their many life licenses.

"Again, we wholeheartedly support NASAA's drive to shine a spotlight on perpetrators of investment fraud, but call on state securities regulators to more accurately identify the scam artists so there is no confusion among the investing public."

The Professional Independent Insurance Agents of Illinois is an association representing independent insurance agents throughout the state. PIIAI membership is comprised of 1,500 insurance agencies representing 12,000 licensed independent agents engaged in all facets of the insurance industry, including property, casualty, life and health. Its members are businesses that offer customers a choice of policies from a variety of insurance companies. In addition to serving the professional needs of members, PIIAI works for the betterment of the insurance industry through legislative and consumer awareness programs. The PIIAI is headquartered in Springfield, Illinois. Visit PIIAI's consumer website at www.ChooseIndependent.com or agent website at www.piiai.org.

For an electronic copy of this release in Word format, e-mail lrichter@piiai.org or visit our newsroom at www.ChooseIndependent.com.

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FOR MORE INFORMATION, CONTACT:
Laura Richter, PIIAI Vice President of Communications
(217) 321-3023 or lrichter@piiai.org