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Question

Difficulty: HardNational Do Not Call Registry and TCPA

An insurance producer is reviewing a lead list and decides to call a prospect who submitted an online request for a life insurance quote 4 months ago. The prospect's phone number has been on the National Do Not Call (DNC) Registry for two years. The producer assumes that the online quote request established an Established Business Relationship (EBR), which permits calls for up to 18 months. The producer places the call at 11:00 AM in the recipient's local time zone. Which of the following best explains why this call is a violation of federal telemarketing regulations?

  1. The EBR exception for consumer inquiries and applications only lasts for 3 months, so the producer no longer has an exemption to call a number on the National DNC Registry.Answer
  2. B
    An online quote request does not create any form of EBR; an exemption to the National DNC Registry only applies if the consumer completes a financial transaction.
  3. C
    The call was placed outside the permissible telemarketing window, as federal regulations prohibit unsolicited insurance sales calls before 12:00 PM (noon) regardless of EBR status.
  4. D
    Telemarketers must scrub their internal lists against the National DNC Registry every 31 days, which strictly invalidates all EBR exceptions after the first scrub cycle.

Answer

The call violates regulations because the Established Business Relationship (EBR) exception for a mere inquiry or application expires after 3 months, not 18 months.
Federal regulations distinguish between different types of Established Business Relationships (EBR). While a completed transaction, purchase, or policy expiration grants an 18-month exemption to call a consumer on the National Do Not Call Registry, a mere inquiry or application only grants a 3-month exemption. Because 4 months have elapsed since the quote request, the producer's EBR exception has expired, making the call illegal.

Step-by-Step Solution

1
Analyze the time of the call to check for TCPA calling window violations.
The call was placed at 11:00 AM local time, which is compliant with the 8:00 AM to 9:00 PM federal rule.
Eliminates time-of-day violations as the cause of the illegal call.
2
Analyze the prospect's National Do Not Call Registry status.
The prospect is on the registry, meaning the producer MUST have a valid legal exception (such as an EBR or express written consent) to make the call.
Establishes the baseline requirement for an exception.
3
Evaluate the nature and duration of the Established Business Relationship (EBR).
The consumer made an inquiry (quote request) 4 months ago. They did not make a purchase.
The TCPA applies different timelines based on the type of relationship.
4
Apply the statutory limits for the specific type of EBR.
EBRs based on inquiries last only 3 months. EBRs based on transactions/purchases last 18 months. Since 4 months have passed, the 3-month exception has expired.
Identifies the exact regulatory failure made by the producer.

Key Concept

Under the TCPA and National Do Not Call rules, an Established Business Relationship (EBR) grants a 3-month calling exception for consumer inquiries and an 18-month exception for completed transactions or purchases.
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Topics

National Do Not Call Registry and TCPA

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