What is IMSA?
Millions of Americans trust and depend on life insurance products for financial security. That’s why ethical conduct in the marketplace is crucial for an individual company and for the industry as a whole. To help maintain high standards of marketplace behavior, the industry has established the Insurance Marketplace Standards Association – IMSA.
The Insurance Marketplace Standards Association is a voluntary membership organization. IMSA member companies agree to follow a specific set of standards in their advertising, sales, and service for individual life insurance, long-term care insurance and annuity products. A board of directors, made up of life insurance industry chief executives and academia experts of the insurance industry, sets policy for IMSA.
What Are Some Of The Standards That IMSA Members Must Meet?
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Maintain policies and procedures that demonstrate a commitment to honesty, fairness and integrity in all customer contacts involving sales and services for individual life insurance and annuity products; |
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Emphasize to all employees and distributors the concepts of ethical market conduct through ongoing communications programs; |
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Review its advertising materials regularly to assure that they are honest and clear; |
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Examine its sales materials continually to see that they are current, accurate and in accordance with current laws and regulations; |
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Monitor the sales process carefully, on a regular basis, and obtain and respond to customer feedback; and |
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Engage in fair competition consistent with state and federal law and communicate this practice to employees and distributors involved in the sales process. |
What Do IMSA Standards Mean To The Consumer?
These IMSA standards help assure a consumer that a company continues to commit itself to honesty, fairness, and integrity in all customer contacts involving the sale and servicing of individual life insurance and annuities. As part of that commitment, the company carefully monitors the sales process, its employees and agents on a regular basis. The company develops policies and procedures to assure that customers receive information they need to make decisions about purchasing and/or replacing policies. The company also maintains a system to respond expeditiously to customer concerns and complaints.
Are IMSA Standards The Same As Those Required Under Existing State Regulation?
IMSA standards complement those already required under existing state regulation. The overall IMSA standards are more rigorous than current regulatory requirements. When it joins IMSA, a company agrees to set up and follow procedures specifically designed to promote ethical market conduct, and agrees to monitor those procedures to verify continued compliance with IMSA standards.
How Does A Company Become A Member Of IMSA?
A company becomes a member by adopting IMSA’s Principles and Code and by implementing policies and procedures to meet its rigorous standards.
To demonstrate its commitment, the company undergoes as assessment by an outside, independent examiner, such as an accountant, attorney, or actuarial or management consultant who is certified to assess that the company has met IMSA standards. This independent assessment can happen only after a company first examines its own systems and programs to promote and maintain ethical behavior in the marketplace. IMSA membership lasts for three years. Thus, the assessment and review process must be repeated every three years in order for a company to remain a member of IMSA.
Should I Look Only At IMSA Member Companies When Shopping For An Individual Life Insurance Policy Or An Annuity?
Choosing a life insurance company is an important decision, and you should consider many factors. Simply because a company is not an IMSA member does not mean that it doesn’t have similarly high standards. A number of legitimate business decisions may have guided its choice not to join at this time. However, IMSA membership could be an important consideration for you. It is further evidence that a company is committed to high standards and has established policies and programs to recognize customers’ needs.
Why Does IMSA Apply Only To Individually-Sold Life, Annuity, And Long-Term Care Products?
IMSA addresses these areas because they have been a principal source of concern to customers in recent years. While its scope may possibly broaden in the future, IMSA does not currently include claims, underwriting or product development activities or other product lines.
For further information, Visit IMSA’s Web site or write to: IMSA, Two Wisconsin Circle Suite 320, Chevy Chase, MD 20815