Starters - Timing of Disclosure

  • It had been the desire of the working group to require delivery at the time of application, but small insurance companies would have a great deal of trouble complying with that requirement due to lack of computer resources, so the extra period is allowed by way of compromise.


1989
-2, NAIC Proceedings

  • Inappropriate Timing of Message - Dissemination of the message at an inappropriate time also reduces effective exposure.
    • For example, the life insurance cost disclosure package adopted by the National Association of Insurance Commissioners (NAIC) suffers from a serious timing problem.

1982 - AP - Using Information-Processing Principles in Public Policymaking, Michael B. Mazis and Richard Staelin - Marketing - 21p

Timing of disclosure

  • The question of when during the sales process to disclose cost indexes and other policy information to customers has generated considerable controversy.
  • Obviously, if the purpose of the disclosure is to assist the consumer In making a purchase decision, the information should be provided before the decision is made.
  • A practical problem arises, however, due to the fact that an insurance agent does not know at the outset of the sales presentation what sort of policy the customer will choose.
  • The agent cannot reasonably be expected to prepare elaborate policy data disclosures in advance for all of the alternatives that could be selected.  (p49)

Analysis of this issue requires a description of the sales process.

 

1978  - Life Insurance Marketing and Cost Disclosure Report - Moss

C. Timing of disclosure
Finally, the Commission was concerned about the timing of the
disclosure. Under the NAIC model regulation, consumers generally
received the buyer's guide and policy summary only when the
policy is actually delivered, often a week to 10 days after purchase.
Our experience indicates that if cost disclosure is to be effective, it
must take place before the purchase decision. Consumers are very
unlikely to read and use a disclosure package provided after the
transaction has been completed.

1979 - GOV - FTC STUDY OF LIFE INSURANCE COST DISCLOSURE Cannon - 592p