1990s - NAIC - Insurance Regulators - Government Hearings

  • 1993 0525 -  GOV (Senate) - When Will Policyholders Be Given The Truth About Life Insurance?, Senator Howard Metzenbaum (D-OH)  ---  [BonkNote]
    • (p33) - NAIC - Statement of David Lyons (Iowa Insurance Commissioner (IA), On Behalf of the National Association of Insurance Commissioners 
    • I also serve, as you noted, as the chairman of the NAIC's Life Insurance Committee, which has jurisdiction over several insurance consumer disclosure issues including life policy illustrations, which has been the subject of a lot of discussion this morning.
      • Access to information is the true key.
      • The NAIC has long been working to improve the availability and quality of information consumers receive.
    • (p34) - A buyer's guide was added in 1976.
      • Thirty-two States now require that it be provided to consumers during the sale of insurance.
      • In 1983, it was upgraded to include information on universal life and other new developments in the insurance world.
      • As new products were introduced to the marketplace, new needs for consumer protection arose.
        • So in June 1989, our life insurance committee adopted disclosure statements to help consumers compare different types of interest-sensitive products.
        • The forms were then tested with consumers, and revisions were made in December 1989 based upon that consumer input.
        • These disclosure forms were then added to the NAIC universal life model  regulation.
    • (p34) - As with all areas of insurance regulation, however, our focus is not on what we did yesterday; it is on what we will do tomorrow.
    • (p34) - In addition, I hope this hearing itself sheds light, a spotlight, on the issue to encourage the States to focus greater attention on adopting the consumer protection measures which have already been developed by the NAIC.
    • (p34) - Giving consumers clear, relevant, and complete information plays an important role in any market, particularly in one as complex as insurance, and it is extra complex in the area of life insurance.
      • The NAIC has long recognized this fact, and I think our record reveals our commitment to consumer information.