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IMSA Releases New Compliance Standards for Annuities, Life Insurance, and LTCI 

 
Published 12/1/2006   » More From This Issue

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Suitability standards for annuity products and long term care insurance that will apply nationally are the centerpiece of new standards just issued by the Insurance Marketplace Standards Association (IMSA), the premier standards-setting organization for the life insurance marketplace.

The new IMSA suitability standards incorporate the essential elements of the NAIC model regulations for annuities and long term care. Inclusion of these provisions means widespread national application of these consumer protection standards by IMSA companies. They will cover the 60 percent of the life insurance marketplace represented by IMSA-qualified companies.

In addition to suitability provisions, the new IMSA standards adopt a streamlined methodology to more closely track the compliance approach of companies and regulators. The new IMSA standards are effective immediately with a compliance date of Jan. 1, 2008.



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    • 1/21/2010 12:58:50 PM
    • CHARLES PULLARO
    • annuity sales reform
    • We all know that training from the major EIA companiers was to sell the equity index as an investment product. now we have to dfo an about face. I believe the product, along with equity life should be regulated more closely, agents and principals ie.salesmen, general agents and home office personnel be required to pass the series 7 exam. In the disclosure requirements, just like any other "packaged" produce, UIT's, Mutual Funds, SMA. Only by showing the charges (commissions, reallowances, management expenses, tripo awards, etc) will the consumer truly understand the product. All of this happened when agents, lured by commissions as high as 8 to 12 percent, went out asking "how would you like to make money wnen the stock markets go up, and never lose if the markets retreat. Also, most indexes used in the EIA's have a brother/sister called total return. ever heard of it. Total return credits dividends to the raw index. WHO is recieving the credit for dividends?? could it be the insurance companies, whereas the insurance buyer is being skimmed. Take a look at the results of dividend crediting indexes vs raw indexes. You'll be amazed in the difference So the way I see it, as most consumers may, full disclosure, licensing, and use of a prospectus should help the public understand the product. A higher level of accountability is required by salesmen, home office personnel, mid-management, etc. Do you not aggree? cp

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