The Board of Directors of Indianapolis-based Jim Clark Retirement TM announced today that it stands behind its Founder, Jim Clark, in his effort to protect his clients.
In 1992, Clark was fined $500 by the Indiana Department of Insurance for warning his clients that Kentucky Central Life Insurance Company of Lexington, Kentucky might have financial problems.
When Clark saw an article in Forbes magazine that revealed that the company might have financial problems due to insider fraud, he immediately notified his clients who had invested their retirement savings with Kentucky Central of the potential danger. Clark told his clients in a letter that he did not know if Kentucky Central had financial problems or not; he simply made them aware of the article in Forbes and advised them to contact the company with their questions and concerns. In response, Kentucky Central filed a formal complaint against Clark with the Indiana Department of Insurance. In Indiana, it's against the law for an agent to disclose derogatory information about an insurance company, even if the information puts the consumer at risk. Accordingly, Clark’s license was suspended and he was fined $500.00. His license was restored when he paid the fine.
When asked about the event, Clark said: "I felt that my fiduciary responsibility and moral obligation to protect my clients outweighed my obligation to the insurance company. I would do it again, in a heartbeat."
Commenting on the issue long-term client Larry Whitlock said: “It seems to me that Mr. Clark did what the Department of Insurance should have done, protect the public. In my opinion, Mr. Clark deserves an award, not a fine. As a client, I’m certainly glad someone is looking out for my retirement.”
Clark is Founder, Chairman, and CEO of Jim Clark Retirement TM and Jim Clark Foundation TM.
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Clark Warns Clients | Receives Fine