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Article: Need for due diligence now top priority.
- Article from:
- National Underwriter Life & Health-Financial Services Edition
- Article date:
- October 14, 1991
- Author:
CopyrightCOPYRIGHT 1991 Summit Business Media. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Joe is a financial planner who sold life insurance for a failed company and is now being sued by clients who say he should have known something was wrong.
This may sound like a planner's worst nightmare, but it is in fact happening to some in the wake of the failure of Executive Life and other insurers, said Don Beaty, president of Dallas-based Kavanaugh Securities Inc.
How exposed are planners, and what can they do to cover themselves?
One concept that has gotten a lot of attention lately is "due diligence," which in general means looking into the financial strength of the companies represented and the safety and suitability of investment ...