The National Do Not Call Registry
The Federal Trade Commission maintains the National Do Not Call Registry, which includes over 240 million phone numbers. If you are making outbound sales calls as an insurance agent, you are required to scrub your calling lists against this registry before dialing. This applies whether you are dialing manually or using a power dialer. The requirement is not optional, and ignorance of the rules is not a defense.
To access the registry, you register as a seller or telemarketer at telemarketing.donotcall.gov, pay the applicable area code fees, and download the suppression list. You must scrub your lists at least every 31 days. If a number has been on the registry for 31 days or more and you call it without an exemption, you are in violation.
The cost to access the registry depends on how many area codes you need. The first five area codes are typically included in the base fee, with additional area codes at a per-code rate. For agents calling nationally, the annual cost can run into the hundreds of dollars, but it is a fraction of the cost of a single violation.
Existing Business Relationship Exemption
The most important exemption for insurance agents is the existing business relationship, or EBR. If a consumer has an existing policy with you or has made an inquiry or application within the past 18 months, you may call them even if their number is on the Do Not Call list. This exemption exists because regulators recognize that consumers who already do business with you may benefit from hearing about policy updates, renewal options, or additional coverage.
However, the EBR exemption has limits. If the consumer specifically asks you not to call, you must honor that request immediately, regardless of the business relationship. This is where your internal Do Not Call list becomes critical.
Internal Do Not Call Lists
Every agent and agency must maintain an internal Do Not Call list. When a consumer says they do not want to be called, whether during a conversation, via email, or through any other channel, you must add them to your internal list within a reasonable time. The FTC expects this to happen quickly, generally interpreted as within 24 hours.
Your internal list must be honored indefinitely, not just for the 31-day scrubbing window. If someone asked to be removed five years ago, they are still on your internal list unless they explicitly request to be added back. Many CRMs, including Closd, allow you to flag contacts as Do Not Call so they are automatically excluded from calling campaigns.
State-Specific Do Not Call Lists
Many states maintain their own Do Not Call registries in addition to the federal list. Some states have stricter rules than the federal standard, including shorter EBR windows, additional registration requirements for telemarketers, and higher penalties. Before calling into any state, check whether that state has its own list and what its specific rules are.
Some states also require you to register as a telemarketer at the state level before making any outbound calls to their residents. Failing to register can result in penalties independent of whether you actually called someone on a Do Not Call list. The requirements vary significantly, so agents who sell across state lines need to be especially diligent.
Penalties for Violations
The federal penalty for a Do Not Call violation can be up to $50,120 per call as of recent enforcement actions, and this amount is periodically adjusted. State penalties vary but can also be substantial, with some states allowing consumers to sue individually for damages in the range of $500 to $1,500 per call.
Beyond fines, violations can result in carrier complaints, E&O claims, and damage to your professional reputation. State insurance departments may investigate Do Not Call complaints as part of market conduct examinations, potentially putting your license at risk. The financial and professional cost of non-compliance far exceeds the cost of proper scrubbing and list management.
Best Practices for Staying Compliant
Scrub your calling lists against the federal registry at least every 31 days, without exception. Maintain a clean internal Do Not Call list and update it immediately when someone requests removal. Check state-specific requirements for every state where you make calls. Train every agent on your team about DNC rules before they make their first call. Document your compliance procedures in writing so you can demonstrate good faith if a complaint arises.
Use a CRM that supports Do Not Call flagging and automatic suppression. Closd lets you flag contacts as Do Not Call and automatically excludes them from dialer campaigns, so compliance is built into your workflow rather than dependent on memory. Explore the platform at getclosdai.com.
This article is for informational purposes only and does not constitute legal advice. Consult with a licensed attorney for guidance on your specific compliance obligations.