Help Topics: IMSA (Insurance Marketplace Standards Association)
- What is IMSA?
- How does a company become a member of IMSA?
- What are some standards that IMSA members must meet?
- What do IMSA standards mean to the consumer?
- Are these standards the same as those required under existing state regulation?
- Why does IMSA apply only to individual life insurance and annuities?
What is IMSA?
The Insurance Marketplace Standards Association 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, annuity and long term care products. A board of directors, made up of life insurance industry chief executives, sets policy for 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, a company must first examine its own systems and programs to promote and maintain ethical behavior in the marketplace. After this self-assessment, the company undergoes an assessment by an outside, independent examiner, such as an accountant, attorney or actuarial consultant, certified to assess that the company has met IMSA standards. This review and assessment must be repeated every three years in order for a company to remain a member of IMSA.
What are some standards that IMSA members must meet?
In adhering to the IMSA standards, a company must, for example:
- Adopt policies and procedures that demonstrate a commitment to honesty, fairness and integrity in all customers contacts involving sales and services for individual life insurance, annuity and long term care products.
- Have in place continuing communications programs which emphasize to all employees and agents the concepts of ethical market conduct.
- Review its advertising materials to assure that they are honest and clear and examine its sales materials to see that they are current, accurate and in accordance with current laws and regulations.
- Monitor the sales process on a regular basis and obtain and respond to customer feedback.
- Engage in fair competition consistent with state and federal law and communicate this practice to employees and agents involved in the sales process.
What do IMSA standards mean to the consumer?
These IMSA standards help assure a consumer that a company has committed itself to honesty, fairness and integrity in all customer contacts involving the sale and servicing of individual life insurance and annuities. As part of that commitment, the company carefully monitors the sales process, its employees and agents on a regular basis. The company develops policies and procedures to assure that customers receive information they need to make decisions about purchasing and/or replacing policies. The company also maintains a system to respond expeditiously to customer concerns and complaints.
Are these standards the same as those required under existing state regulation?
IMSA standards complement those already required under existing state regulation. The overall IMSA standards are more rigorous than current regulatory requirements.
Why does IMSA apply only to individual life insurance, annuities and long-term care products?
IMSA addresses these areas because they have been a principal source 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
