Consumer – [BonkNote]

Reasonable Person As in every other business, an insurance agent’s primary enterprise is to sell insurance, a vocation no adult consumer would confuse with a religious order.[12] Concomitantly, a reasonable buyer of insurance (or any other product) must, at peril of caveat emptor, act as a reasonable consumer, e.g., research her needs from multiple sources and price-shop for policies.[13] [12] “[F]or…

Consumer Outcomes bonknote.com/2022-0908-gov-senate-current-issues-in-insurance-sandbox/ Legal Cases Complaints 2016 0901 – WSJ – Life Insurance Customers Push Back Over Surprise Cost Increases: Policyholders are filing suit, as big U.S. life insurers blame the Federal Reserve’s decision to keep interest rates lower for longer, by Leslie Scism – [link-Gift] 2016 0813 – NYT – Why Some Life Insurance Premiums…

Reasonable Expectations 3. Heard a Federal Update on the Implications of the DOL Fiduciary Rule – Brooke Stringer (NAIC) Micah Hauptman (Consumer Federation of America—CFA) said there are gaps in the current regulatory framework. He said he does not believe consumers’ reasonable expectations are being met. He said the DOL should require a fiduciary duty, regardless…

65 or older 2022 0304 (Date Filed) – LC – Williams v. National Western Life Insurance – Opinion on Transfer, Appeals Court – 52p (p7) – 5 Section 785, subdivision (a) provides: “All insurers, brokers, agents, and others engaged in the transaction of insurance owe a prospective insured who is 65 years of age or older, a…

Elder Abuse ‘living trust mills’ 4 A “ ‘living trust mill’ ” involves “salespeople, posing as experts in estate planning, ngage[ing] in the unlawful practice of law, advis[ing] senior citizens to establish a living trust, and to invest in . . . annuities.” (People ex rel. Lockyer v. Fremont General Corp. (2001) 89 Cal.App.4th 1260,…

Shock The flexibility of Universal Life that initially appealed to the policyholder which allowed him to change premium payments, coverages, etc., will make this annual report of the condition of his “account” an unanticipated shock. — Dale W. Hotze, is President of Hotze & Associates Inc., Jacksonville, Florida. 1983 – SOA – Universal Life (rsa83v9n32), Society…

NAIC/Consumer Liaison Committee – NAIC 2023 0321 – NAIC/Consumer Liaison Committee – 6p (p3-4) – Richard Weber (Life Insurance Consumer Advocacy Center—LICAC) 5. Heard a Presentation Calling Attention to the Dilemma of Current Assumption Policy Illustrations Weber provided some simple graphic views of variable universal life policies and said an illustration showing a $5,900 annual…

Illustrations – Expectations Robert E. Wilcox, Utah Insurance Commissioner and Chairman of the Life Disclosure Working Group (NAIC) – If the policyholders’ expectations are built around the concept that they are going to get a fair dividend, and that fair dividend means that, if the interest rate goes up, policyholders get more, and if rates…

Consumer Protection Policyholder Protection CFPB CFPA DOL – Fiduciary NAIC – Annuity Suitability SEC – Reg BI – Regulation BI Unfair Trade Practices Courts – Legal Cases – Lawsuits – Class Actions – MDL’s Administrative Actions Enforcement Actions (p25) – Michael McRaith (NAIC / Illinois Insurance Regulator) – So the real question is what is…