David, a licensed life insurance agent, is reviewing his records for potential prospects. He notices a former customer, Sarah, who canceled her term life insurance policy exactly 14 months ago. Sarah's telephone number has been on the National Do Not Call Registry for the past two years. David does not have current express written consent to contact her.
Based on federal telemarketing regulations, which of the following statements is true regarding David's ability to solicit Sarah over the phone?
- The call is permissible because the established business relationship exemption extends for 18 months following a consumer's last transaction.Answer
- BThe call is prohibited because the established business relationship exemption is limited to a maximum of 3 months after a policy is canceled.
- CThe call is prohibited because placing a number on the National Do Not Call Registry strictly overrides any prior business relationship without written consent.
- DThe call is permissible because an established business relationship allows an agent to contact a former client indefinitely, regardless of registry status.
Answer
The call is permissible because the established business relationship exemption extends for 18 months following a consumer's last transaction.
The correct answer accurately reflects the Telephone Consumer Protection Act (TCPA) guidelines. When a consumer has an established business relationship (EBR) with a company—such as having a policy, making a payment, or canceling a transaction—the company is legally permitted to call that consumer for up to 18 months, even if their number is listed on the National Do Not Call Registry.
Step-by-Step Solution
Key Concept
Under the TCPA, an Established Business Relationship (EBR) creates an 18-month exemption window allowing producers to call consumers who are on the National Do Not Call Registry, measured from the date of the last transaction or payment.
Estimated Time:1m 0s