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

NAIC Current / Recent Working Groups

2016/4/3 - LIIIWG CC, NAIC Proceedings

<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.

"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 "The Path to Reform –The Evolution of Market Conduct Surveillance Regulation," Prepared for the Insurance Legislators Foundation by PricewaterhouseCoopers LLP and Georgia State University