The Compliance Consequences of Ghostwriting and How to Avoid Them

As an active agent in life insurance and annuity sales, it’s crucial to be aware of the practice of “fronting,” commonly known as ghostwriting. This practice presents a significant compliance concern for both the agent and the carrier and is strictly prohibited by the laws of numerous jurisdictions. Insurers and regulatory agencies take this matter very seriously, and violations can lead to severe consequences for everyone involved.