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Millions of Americans trust and depend on life insurance products for
financial security. To help maintain high standards of marketplace behavior, the industry has
established the Insurance Marketplace Standards Association – IMSA.
IMSA is a voluntary membership organization. IMSA member companies agree to
follow a specific set of standards in their advertising, sales and service for
individual life insurance and annuity products. A board of directors, made up of
life insurance industry chief executives, sets policy for IMSA.
Questions
Commonly Asked About IMSA
- How does a company become a member of IMSA?
- A company becomes a member by adopting IMSA's Principles and Code and by
implementing policies and procedures to meet its rigorous standards.
To demonstrate its commitment, the company undergoes an assessment by an
outside, independent examiner such as an accountant, attorney, or management
or actuarial consultant certified to assess that the company has met IMSA
standards. This independent assessment can happen only after a company first
examines its own systems and programs to promote and maintain ethical behavior
in the marketplace. IMSA membership lasts for three years. Thus, the
assessment and review process must be repeated every three years in order for
a company to remain a member of IMSA.
- What are some of the standards that IMSA members must meet?
- To adhere to IMSA standards, a company must, for example:
- Maintain policies and procedures that demonstrate a commitment to honesty,
fairness and integrity in all customer contacts involving sales and services
for individual life insurance and annuity products;
- Emphasize to all employees and distributors the concepts of ethical market
conduct through ongoing communications programs;
- Review its advertising materials regularly to assure that they are honest
and clear;
- Examine its sales materials continually to see that they are current,
accurate and in accordance with current laws and regulations;
- Monitor the sales process carefully, on a regular basis, and obtain and
respond to customer feedback; and
- Engage in fair competition consistent with state and federal laws, and
communicate this practice to employees and distributors involved in the
sales process.
- Are these standards the same as those required under existing state
regulation?
- IMSA standards complement the ongoing compliance activities already
required under state regulation. The overall IMSA standards are more
rigorous than current regulatory requirements. When it joins IMSA, a company
agrees to set up and follow procedures specifically designed to promote
ethical market conduct, and agrees to monitor those procedures to verify
continued compliance with IMSA standards.
- Why does IMSA apply only to individual life insurance and annuities?
- These two areas have been principal sources of concern to consumers in
recent years. While its scope may possibly broaden in the future, IMSA does
not currently include claims, underwriting or product development activities
or other product lines.
- What does IMSA membership mean to distributors?
- IMSA membership is just one more way for life insurance companies and
distributors to demonstrate their commitment to ethical market conduct.
One of the IMSA principles requires a company to maintain a system of
supervision and review of the market activities of its employees and
distributors involved in sales in order to monitor their compliance with the
IMSA Principles and Code and applicable laws and regulations. IMSA member
companies will provide their employees and distributors with specific
information on how the company will meet IMSA requirements.
- How can companies and distributors use the IMSA designation and logo?
- IMSA member companies can refer to their IMSA designation and use the IMSA
logo in materials advertising and marketing individual life and annuity
products. These may include company reports, print or electronic
advertising, on-line home pages, or any other appropriate promotional
materials.
The IMSA logo designates insurance company membership, not the endorsement
of a specific product or company representative. Specific guidelines have been
developed on the use of the IMSA designation and logo. Distributors can
include their identities on company brochures containing the logo, as long as
it is clear that the logo applies only to the company. The guidelines preclude
the use of the designation or logo on company or producer business cards,
policies, applications and sale illustrations. Distributors should contact the
IMSA member company for information on use of the IMSA designation and logo.
For further information, write to:
IMSA
1001 Pennsylvania Avenue, N.W.
Suite 500 South
Washington, D.C. 20004
Or check the IMSA website: www.imsaethics.org
CFG
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