1992 0623 - GOV (Senate) - Consumer Disclosure of Insurance
- 1992 0623 - GOV (Senate) - Consumer Disclosure of Insurance, Howard Metzenbaum (D-OH) --- [BonkNote]
- [PDF-323p-GooglePlay, VIDEO-?]->Not on govinfo.gov - R
- ....on concerns relating to the adequacy of financial disclosures made in connection with the purchase of whole life insurance policies.
- Judy Faucett
- 1991-1992 - SOA - Final Report* of the Task Force for Research on Life Insurance Sales Illustrations, Society of Actuaries --- [BonkNote] --- 142p
- Senate - Committee on the Judiciary - Subcommittee on Antitrust, Monopolies, and Business Rights
- (p3-4) - Senator Howard Metzenbaum (D-OH) - The purpose of our hearing today is to determine what this committee can do to put a stop to this shell game that life insurance companies are playing with consumers.
- Our investigation showed that many companies offer misleading illustrations, including the five companies whose illustrations you see here today. While these companies cooperated with the subcommittee by providing materials, none of them wanted to present testimony here today.
- We invited the American Council of Life Insurance to testify, but they also did not want to come. They said it was "inappropriate" for them to be "further involved in these matters."
- I think the absence of the companies and the ACLI at the witness table says a lot about the industry's commitment to providing consumers with clear and comprehensive information about life insurance policies.
- I am now convinced that the ACLI and the life insurance companies think that they can keep a sufficient hold on legislation in this area that they don't need to move.
- Well, maybe the glare of publicity about their reprehensible practices will make them realize that it is not the legislation that this body may or may not pass alone, but this body's ability to show the American consumer some of the pretty close to fraudulent practices that the companies are engaging in.
- This is an industry that has tremendous respect in this country, and they have used that respect that they have had to take advantage of consumers in this country.
- They have used the position to pretty much control the State regulators, and they have used the position to pretty much have their will in the halls of Congress.
- I think it is high time that the people of this country become aware of some of the practices, too many of the practices, that just about all of the life insurance companies are using today to rip off the American consumer.
- Howard METZENBAUM (D-OH): Do you think these things are going to happen soon?
- Judy FAUCETT: Well, I certainly hope they are going to happen in my lifetime.
- Howard METZENBAUM (D-OH):
- I hope you have a long lifetime, but I sure hope that the insurance industry moves a lot faster than that, and I am not even talking about my lifetime.
- I think yesterday was too late.
- I think that for this industry to be guilty of such reprehensible practices and to sit on their hands and do nothing I just believe it is incredible.
- The only reason they don't do something about it is because the American people don't know about it.
- I am hopeful that as a result of these hearings they will know more, but I am a realist enough to know that 1 day's news story or commentary, or whatever, with respect to radio or TV does not cause these impregnable companies to move very rapidly.
- I think it is shameful.
- In your professional opinion, will this situation get worse for consumers if your recommendations are not adopted by the industry?
- Judy FAUCETT: I don't know that it will get worse, but certainly it will not get any better.
