InsureU – NAIC

  • Universal Life Insurance – Includes guaranteed annual cash value growth but no investment flexibility.

insureuonline.org/insureu_type_life.htm – <Bad Link>

  • Insure U offers unbiased and trusted consumer resources from the NAIC.
  • The program’s robust website provides consumers with helpful tips and information about insurance-and because individual coverage needs vary, materials are provided for various life situations.
  • The site also features quizzes and public service announcements to help consumers Get Smart About Insurance.

2011 1207 – NAIC/FIO Meeting on Market Conduct – (Documents shared with FIO to facilitate discussion are attached) – 83p

  • insureuonline.org/insureu_type_life.htm – <Bad Link>
  • Life Insurance: It’s more than a death benefit
  • Permanent Life Insurance Options
  • Unlike term insurance, all permanent policies remain in place as long as the premium is paid.
  • They also all have a cash value component that increases over time and allows the owner to borrow against that cash value.
  • There are four types of permanent life insurance:
    1. Whole Life Insurance
      • Offers a fixed premium for the duration of the policy, guaranteed annual cash value growth and a guaranteed death benefit.
      • Does not provide investment flexibility and, once established, you are not allowed to change the policy coverage.
    2. Universal Life Insurance
      • Allows the policyholder to determine the amount and timing of premium payments (within certain limits) and to adjust coverage levels as needs change.
      • Includes guaranteed annual cash value growth but no investment flexibility.
    3. Variable Life Insurance
      • Allows allocation of investment funds across stocks, bonds or money market accounts with different levels of risk and growth potential.
      • A minimum cash value is not guaranteed because of market fluctuation, and coverage amounts cannot be changed.
      • Exposes the policyholder to greater market risk, but has the potential for greater long term returns compared to whole or universal life insurance policies.
    4. Variable Universal Life Insurance
      • Combination of variable and universal life insurance.
      • Offers the most flexibility (compared to other permanent life insurance options) with the ability to vary premium payments, investments and coverage amounts.
      • Allows investment in a variety of market products chosen by the policyholder, and may allow policyholders to make tax-free transfers among investments.
      • Exposes the policyholder to greater market risk than whole or universal life policies.
  • 138. Some supervisors publish conduct-related information that can help to mitigate risks to consumers.
    • Example from the United States: Consumer Information and Education
  • The National Association of Insurance Commissioners (NAIC) provides a variety of public information useful for consumers.
  • Information and tools that U.S. state insurance supervisors have found helpful to make available to consumers include:
    • the NAIC’s Consumer Information Source (CIS) which provides key information about insurers consumers can use (for example, before purchasing insurance), including closed insurance complaints, licensing information and key financial data.
    • INSURE U – Get Smart About Insurance, which is a public education program created to assist consumers with information about insurance issues. INSURE U is designed to help insurance consumers as their lives and needs change, and to educate them about how to avoid being scammed.
      • Since its 2006 launch, INSURE U has featured public service announcements (PSA), consumer alerts, news releases, mobile apps along with integrated social media campaigns, in order to help consumers understand difficult topics.  (p31)

2015 0617 – IAIS (Draft) – ISSUES PAPER ON CONDUCT OF BUSINESS RISK AND ITS MANAGEMENT