We've seen some of the tactics insurance agents use to sell to seniors. The agents seem awfully slick. How did they get so good?

You are about to witness something few people have ever seen -- a school where, authorities say, insurance salesmen are being taught questionable tools of the trade.

These training sessions are only open to licensed insurance agents.

We don't know whether the salesmen we've met so far studied here, but the state of Alabama agreed to help us investigate by issuing insurance licenses to two Dateline producers, so we could attend -- and bring along our hidden cameras.

(hidden camera)

Tyrone Clark: Annuities are not liquid? That is baloney …

This is the man in charge of "Annuity University" -- Tyrone Clark, the self-proclaimed king of annuity sales.

Annuities are legitimate investments for some people, and Clark is a strong advocate for them.

He says they're safe and have no risk, which are selling points especially appealing to seniors.

(hidden cam)

Tyrone Clark: What I sell in peace of mind …

And for the next two days, he'll be giving motivational speeches and traditional sales tips.

Tyrone Clark: I have trained more millionaires in the annuity industry than anybody in America …

But what else is Tyrone Clark teaching?

In 2002, the state of Massachusetts accused Clark and his companies of a "dishonest scheme to deceive, coerce and frighten the elderly."

Part of the evidence was the training manual in which Clark tells agents to sell to seniors by assuming they're “selling to a 12-year-old" and by hitting their “fear, anger or greed buttons."

Clark settled that case without admitting any wrongdoing.

And, now, his company says it's become "an industry leader" in promoting ethical conduct.

But watch what our hidden cameras found, and see if you agree.

Remember those scare tactics?

(hidden camera)

Tyrone Clark: And I’m bringing these things up that disturb the hell out of them.

For Tyrone Clark, disturbing people seems to be Annuity Sales 101.

Tyrone Clark: I bring out the stuff that-- where they can't sleep at night.

And how do you do you make them worry?

One way is to suggest their money may not be safe, even in a bank, by telling a potential client something like this.

(hidden cam)

Tyrone Clark: FDIC is insolvent. FDIC only has $1.37 per every $100 on deposit.

Another way is to mention a senior's natural fear of nursing homes.

(hidden camera)

Tyrone Clark: I help my clients to protect their life savings from the nursing home and Medicaid seizure of their assets. See, that's scary, and it should be scary.

The next step?

Promise people easy access to their money.

Even though, with some exceptions, annuities lock up most of your money for a specified number of years, listen to the sales pitch Tyrone Clark suggests.

Tyrone Clark: There are more ways to access your money. There are more options. There are more choices to access your money from an annuity than any other financial instrument.

We asked Minnesota Attorney General Lori Swanson to watch what our hidden cameras had captured.

Chris Hansen: How would you characterize what this man has said?

Lori Swanson: I think that he is not telling the truth when he tells those agents that an annuity is the most liquid place a senior citizen can put their money. It is simply not true.

For example, if you put your money in a savings account at a bank you could withdraw it at any time. But that's not all that goes into convincing seniors to buy.

You have to make sure they believe you know what you're talking about -- that you have credibility.

At Annuity University, Dateline discovered part of an underground industry that helps insurance agents puff up their credentials and mislead you about who they really are.

(hidden camera)

Dateline: Which are the books that we can write with you?

Richard Duff: This one.

Want to look like a respected author?

This man will let you put your name on the cover of one of his financial books.

All you have to do is write a short biography.

And oh, by the way -- give him a few thousand dollars.

Dateline: Instead of just your name.

Richard Duff: We'll put the three of us on here.

Dateline: Isn't that cool?

Richard Duff: It is good. And it's your first chapter, there's room for five or six, seven pages, all about the way you're looking at things, and phone numbers, contact information.

He's not alone.

At Annuity University, this ad says you can be the author of a book called "Alligator Proofing Your Estate".

Apparently, agents like the idea of pretending to be authors, because Dateline found copies of the same "Alligator" book supposedly co-written by Jeffrey D. Lazarus, Steven Delott, and Ronald and Robert Russell.

Want to sound like a respected financial expert on a nationally syndicated radio show?

At Annuity University, you can buy that too.

(hidden camera)

Jeff Hoyle: Response radio is a pre-scripted radio show, for lack of a better word.

This trainer is explaining how, for a price, an insurance agent can pretend to be a guest on the radio.

They'll send you the script, already written.

Then, the radio host will call and record you.

Dateline: And Rick would interview us?

Jeff Hoyle: Yes.

Dateline: On the show?

Jeff Hoyle: Yes. Yes. You are like the interview-- you are like the guest speaker on "Senior Concerns" talk show.

And, before long, you'll be armed with CDs of your guest appearance to help impress customers.

Tyrone Clark says it's all part of the formula for selling annuities.

But Attorney General Swanson says tactics like that can lead to abuse.

Lori Swanson: He is basically handing them loaded guns so they can walk into the senior's home and rip them off.

MORE FROM DATELINE

Dateline Section Front

Mystery at Lost Dog Road Slideshow: Photos in the Bob Duke case When The Smoke Clears   Sneak peek: When The Smoke Clears Slideshow: The Christie Fleming murder Transcript: Dan Brown and Secrets Of The Lost Symbol Through The Pouring Rain In Plain Sight: Jaycee Dugard Timeline: Jaycee Dugard's kidnapping The Michael Jackson Tapes Dateline Section Front   Add Dateline headlines to your news reader: