NU Online News Service, June 18, 1:52 p.m.– Washington
The American Council of Life Insurers, Washington, says the consumer survey results it released Monday show why Congress should give insurers the option of operating under federal regulation.
The survey, which was commissioned by ACLI and conducted by Matthew Greenwald & Associates, Washington, revealed that only one-third of U.S. consumers know that life insurance is state-regulated, and that only 11% would try to resolve a complaint against a life insurer by turning to state insurance regulators.
Fifty-seven percent of the consumers surveyed said they would handle a complaint against an insurer by hiring a lawyer.
Opponents of ACLI’s “optional federal chartering” proposals argue that consumers would be more confused and have less opportunity to redress concerns under a federal system.
Phil Anderson, ACLI’s senior vice president of government affairs, agrees that consumer protection is a legitimate issue.