Article Abstract:
US leaders believe that their market conduct problems will be solved by the disclosure and regulatory efforts by the National Assn of Insurance Commissioners (NAIC) and the Insurance Marketplace Standards Assn (IMSA). The regulatory upheaval undergone by UK's insurance industry to eliminate market conduct problems is now yielding positive consumer responses. Well-trained and competent agents are required to recommend only the suitable products for specific investors. However, US leaders firmly believe that market forces and not regulators will improve US market conduct.
User Contributions:
Comment about this article or add new information about this topic:
Article Abstract:
Marketing and sales presentations which emphasize low credited interest rates to exclusion of other factors in life insurance policies are misleading according to survey results. It was found that despite a positive correlation between credited interest rates and surrender values, such correlation has no statistic significance. Ethics dictate insurance professionals to give accurate data on the various credits and charges of policy values for reduced market conduct problems, improper replacement and lapse rates.
User Contributions:
Comment about this article or add new information about this topic:
Article Abstract:
Cynthia Davidson, author of "The Market Conduct Handbook for Agents - How to Sell Insurance Ethically and Comply with the Law," says many insurance agents mistakenly believe ethical and professional issues are only the responsibility of company management. She says agents have an important part in market conduct. The most common violation by agents is to abridge their fiduciary responsibilities. State investigations, agent compensation structure and other topics are discussed.
User Contributions:
Comment about this article or add new information about this topic: