What Policies lead to Confusion / Market conduct issues / Lawsuits?

More complex products sold to individual consumers (e.g., universal life policies) tend to generate more market conduct problems than simple products (e.g., term life insurance).

2003 0701 - NCOIL - The Path to Reform – The Evolution of Market Conduct Surveillance Regulation - [PDF-117p]

  • <Mr. Lovendusky - ACLI> said the ACLI work group thinks that most confusion for consumers involves complex products like universal life, and not Simple products like term life.
    • He said consumers are mostly confused about options, guarantees and riders.
  • The ACLI work group was considering asking the life insurance and Annuities (A) Committee to narrow the charge to look at only products with options, guarantees and riders, but Ms. Cude said she thinks that it is important to consider how the disclosures for all products could be improved.

2016 0403 - LIIIWG CC, NAIC Proceedings