Imagine you’re at home with your family enjoying a nice meal after a long day. Suddenly, your phone rings!
Ring! Ring!
You check the caller ID. You’re not familiar with the phone number; however, you’re waiting to hear back from someone and not sure if it could be them. You answer and hear the upbeat voice on the other end of the line:
“Good evening, I hope I’m not bothering you, but this is [sales/marketer name] with [sales/marketing company]. Could I have a moment of your time to discuss how we can help you?”
Click!
Ugh. You distinctly remember putting your phone number on the Do Not Call registry, so you ask yourself: “Why am I receiving this phone call?”
It turns out that that solicitor was not following telemarketing compliance regulations.
As you know, solicitations are very important to the health insurance business, but there are many rules and regulations individuals and businesses must follow to avoid legal repercussions (and general consumer discontent). A very crucial piece of one of these federal regulations all businesses — not just health insurance businesses — must follow is the Telephone Consumer Protection Act (TCPA). Read on to learn TCPA hours, TCPA opt-out requirements, and more!
What Is the TCPA?
TCPA, or the Telephone Consumer Protection Act, is a federal law enacted in 1991 to regulate telemarketing calls, texts, and faxes. It protects consumers from relentless and unwanted automated calls, texts, and faxes. Notably, it also places restrictions on the use of automated dialing systems, for call and text, and prerecorded or artificial voice messages.
Insurance agents must adhere to the TCPA compliance requirements. In fact, any organization or person soliciting business via phone or fax must remain TCPA compliant.
TCPA Regulations Insurance Agents Must Follow
There are several separate requirements that agents need to abide by under the TCPA. We’ll explore some of them. For all rules, please read the full Act here.
Hours Insurance Agents Can Make Calls
Under the TCPA, telephone solicitations must be between 8AM and 9PM in the client’s specific time zone. Some states, like Florida and Louisiana, cut the time by an hour, so the window closes at 8PM instead of 9PM. Be sure to double-check the regulations in whichever state your client lives in to remain compliant before sending any telecommunications.
Despite the TCPA giving mandated call times, it is generally a best practice to call only during your individual business’ hours, so long as those hours fall between the TCPA’s times. This reduces the number of complaints from consumers and is more respectful toward their time.
Robocall & Autodialer Requirements
If you’re using an autodialer, you must gain prior expressed written consent from a consumer before you contact them. To cover any foreseeable scenarios, it’s recommended to write up a broad consent statement for your clients to sign. To ensure your statement remains fully compliant, be sure to add clear caller identification and calling hour instructions.
One such example could be:
“I understand that I may be contacted via telephone, email, text messaging, artificial or preed voice messages, or automatic dialing at the contact information provided (even if my number is currently listed on any state, federal, local, or corporate Do Not Call list) by [Business Name]. Carrier data use charges and rates may apply. I understand that my consent is voluntary and is not a condition of purchasing any goods or services, and that I may change my preferences at any time.”
Feel free to adjust any language or add in any other particulars that would be beneficial for you to clarify while running your insurance business.
Note: This disclaimer example is not inclusive of all disclaimer requirements that may be required. It may depend on the regulatory requirements of the industry you are operating in.
What Is ‘Autodialed’ under the TCPA?
Any calls or texts considered “autodialed” are those made with the use of an Automatic Telephone Dialing System (ATDS).
Outbound Mass Text messaging
Automated mass texts can also be sent out to multiple clients for ease of sending the same message out to many people at once. The law stipulates that after most of the text message has been relayed, it should also provide opt-out instructions in a bold typeface.
A good example would be:
“Reply STOP to unsubscribe”
If a client has asked to opt out, you must remove them from all future mass text messaging within 10 days, if removal isn’t already automated.
Outbound Artificial or Preed Voice Messages
When using artificial or preed voice tactics for your outbound messages, you must first state your registered business name, especially for clarity to your clients. Being as transparent as possible with clients is not only an effective way to stay compliant, but also to build trust with them!
Being as transparent as possible with clients is not only a good way to stay compliant, but also to build trust with them!
In addition, if the message has an advertisement or a telemarketing message, it must provide an automated opt-out mechanism, like with an interactive voice or key activation option. That way, if the client does not want to participate in these types of messages, they can automatically opt out without your intervention, and you remain compliant with the regulation.
At some point in the message, or near the end of it, you must also state the phone number of your business that, if called, must also provide an option to opt out of future calls.
If your message happens to only reach voicemail, it must provide a toll-free number for any future automated opt-out requests.
Do Not Call Registry
In 2003, the Federal Trade Commission (FTC) created the Do Not Call (DNC) Registry to allow Americans to opt out of receiving most telemarketing calls by adding their phone number to the registry.
It is strictly prohibited to make any telephone call or message made for the purpose of selling a service or goods to the phone numbers on the registry unless they meet one of two exceptions.
The FTC notes the registry only features phone numbers and there are no s as to if they’re landlines or mobile phones. No additional personally identifiable information is available through the DNC registry.
According to the Telemarketing Sales Rule (TSR), businesses are required to scrub their call lists against the DNC at least every 31 days.
If you’re looking for lead scrubbing services that could help you remain compliant with this regulation, Integrity’s LeadCENTER leads are already scrubbed against the DNC lists! Complete a simple and free registration on RitterIM.com to gain access to this cutting-edge tool!
DNC Exceptions for Calls
- If the client provided a “prior expressed invitation or permission” to receive such calls from you (i.e., a client completes business reply card or online form).
- If the client has “an established business relationship” with you and that person has not previously informed you that they do not wish to receive calls.
- An established business relationship exists between you and your client if
- Within 18 months prior to the call, the client has transacted business with you.
- Within three months prior to the call, the client has made an inquiry or application regarding products or services offered by you.
- An established business relationship exists between you and your client if
It’s important to note that if you do not have expressed written consent or a business relationship with your client, you are legally required to scrub their number against the DNC registries. Cold calling is also strictly prohibited in Medicare business, even if the DNC is scrubbed.
It’s important to note that if you do not have expressed written consent or a business relationship with your client, you are legally required to scrub their number against the DNC registries.
Consumer Opt-Out Requests
If your client makes any request, whether it is written, oral, or electronic, that can be reasonably interpreted as a request to not to be contacted in the future, that request should be treated as an opt-out from future communications.
An example of a request could look like: “I would prefer not to receive calls about this.”
When receiving one of these requests, they must be ed to be excluded from any future communications and should be maintained in an opt-out log. Once received, a request to opt out should be implemented within 10 days of the request, if the process is not automated.
Consent On File
You might be asking yourself, “What should I do if I’m not sure if there is an appropriate, unrevoked consent from my client on file?”
Please make sure you avoid using an ATDS, any prerecorded, or artificial voice calls or texts and scrub their number against the DNC registry. Cold calling is also strictly prohibited in Medicare business, even if the DNC is scrubbed.
States with Mini-TCPAs
Some states have stricter regulations than others. This is more commonly referred to as “mini-TCPAs”. Just as some states cut the call window an hour shorter than others, these states impose stricter requirements based on each state’s individual laws. Some examples include:
- California: Requires telemarketers to register with Attorney General and mandates additional disclosures during calls
- Florida: Requires explicit consent for all telemarketing calls, including manual calls, with severe penalties for violations
- Pennsylvania (Ritter’s home state!): Requires telemarketers to register annually and comply with stricter state DNC rules
- New York: Mandates written contracts for certain telemarketing transactions and restricts certain call times
Note: This list is not exhaustive and only shows some states and some of their specific requirements.
Is the FCC One-to-One Consent Rule in Effect?
No, the one-to-one consent rule proposed by the Federal Communications Commission’s (FCC) did not take effect.
The FCC rule (also known as the “lead generator loophole”) would have required a separate consent for each company contacting a consumer through a robocall or text. The FCC’s rule was struck down and put on hold indefinitely on January 24, 2025, by the Eleventh Circuit Court of Appeals.
What Happens If You Don’t Remain Compliant with TCPA?
If you don’t remain compliant with TCPA regulations, you could face quite a few consequences, including:
- Steep fines ranging from $500 to $1,500 per call or text
- Lawsuits and class actions from perturbed clients
- Damage to your business’ reputation
- Legal fees and regulatory scrutiny
To avoid any substantial financial, legal, or reputational repercussions, it’s important you take the TCPA texting rules and calling rules seriously.
Want a comprehensive way to check off your own list to make sure you’re remaining compliant with the TCPA? Look no further than at our TCPA Checklist so you can check off the steps as you go!
Federal and state regulations can appear intimidating to follow, but we’re here to guide you! We hope this summary has helped you feel more confident in telemarketing insurance compliantly.
Ritter can help you remain compliant with the latest, up-to-date information. Complete a simple and free registration on RitterIM.com to access all kinds of tools and resources to help you maintain your business!
Not affiliated with or endorsed by Medicare or any government agency.
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