IMSA - Insurance Marketplace Standards Association

  • Speaking from my IMSA experience, there's a lot of emphasis on internal replacements, replacement activity, trying to meet those definitions, and track that activity, but beyond that, not much is captured in the applications.
  • But at some companies that I've talked to, there's a real concern about funds coming from a lump sum paid out of a 401(k) plan.
  • The concern is that these are qualified monies, and that somehow a broker/dealer/sales agent rolls them into a non-qualified variable annuity.
  • That would really be ripe for some kind of abuse because you're probably not helping out that customer. So you have to go through a litany of questions with the customer, like:
    • "Is this the right time to buy this annuity?
    • Are you fully funding your 401(k)?
    • Are you in your deferred comp plan at work?"
  • We need to determine the right choice and order of priority for some of those kinds of issues. Regulators make a comparison with the existing insurance program to determine if a company is really looking at the customer's profile.

--  Dana Mr. Rudmose, not a member of the sponsoring organizations, is Director of KPMG Peat Marwick in Columbus, OH

1998 - SOA - Market Conduct: A New Actuarial Frontier, Society of Actuaries - 20p

  • The Insurance Marketplace Standards Association (IMSA) was created in 1996 in response to a crisis of damaged consumer trust and confidence in the insurance industry.
  • An independent, nonprofit organization, IMSA had more than 200 voluntary members that lead the insurance industry in promoting high ethical standards in the sale of individual life insurance, long-term care insurance, and annuity products.
  • The organization has been superseded by the formation of the Compliance & Ethics Forum for Life Insurers (CEFLI), 

cefli.org

imsaethics.org/

  • 2004 - IMSA - Market Conduct Standards & the Life Insurance Industry, NOLGHA Annual Meeting, October 26-27, 2004 - 26p
  • 2007-3, NAIC Proceedings - June 4, 2007
    • 4. Appointed an Insurance Marketplace Standards Association (IMSA) Assessment Ad Hoc Working Group. 
    • 2007 0920 - Report - IMSA - Report of the Insurance Marketplace Standards Assessment Ad Hoc (D) Working Group (p601-
      • IMSA is acknowledged in the NAIC Market Regulation Handbook as a source of information for market analysis purposes.
  • Robert Googins, executive director
  • Donald J. Walters
  • 1997 - IMSA - Insurance Marketplace Standards Association Assessment Handbook - <WishList>
  • ACLI / NAIFA - Best Practices for Military Insurance Sales & Their Functional Regulation Military Installation Market Conduct
    • 2004 0909 - NAIFA - Testimony - David F. Woods (CEO) - 11p 
  • IMSA is not as broad as some people would like it, but it's plenty broad to those of us who had to try to work our way through it.
  • Someone had raised a question earlier about agent training.
    • What the agents know about their products, how well they present them, and how they use them is key to IMSA.
  • We want to make sure not only that they're properly licensed and registered, but that you're recruiting to get the right people in front of your clients.
  • IMSA covers the sales process from the first client meeting through policy delivery, with special attention to sales materials; illustrations including claims of product performance; replacements, which as you know has been a hot topic; advertising; service; and complaints.
  • The thing they're looking for in the complaint aspect is a thorough, well-documented process for handling client complaints, including an easy means to register a complaint, such as a well-publicized 800 number.
  • Really, IMSA is almost a Baldrige assessment in terms of making sure that your clients are part of the sales process with respect to their knowledge, their input, and getting what they want and need to make good decisions.
  • IMSA says you have to get to "yes" and if you're familiar at all with IMSA, you're thoroughly familiar with six principles.

--  Paul V. Bruce

1998 - SOA - Market Conduct: A New Actuarial Frontier, Society of Actuaries - 20p

  • 2003 0506 - GOV (House) - Increasing the Effectiveness of State Consumer Protection
    • [PDF-123p, VIDEO-?] - <mp3, mp4> - R
    • CFA - J. Robert Hunter - It is hard to fix a system that has not been analyzed.  (p14)
    • IMSA - Atchinson, Brian K., Executive Director, Insurance Marketplace Standards Association (IMSA)
    • NAIC - Ario, Hon. Joel S., Insurance Administrator, Oregon Insurance Division, Secretary-Treasurer, National Association of Insurance Commissioners
    • House - Committee on Financial Services - Subcommittee on Oversight and Investigations