UnumProvident Announces Comp Disclosure Policy

UnumProvident says it developed those policies as a result of a review that started in late 2004, after regulators raised questions about producer compensation practices.

“Although that review is still ongoing, we have generally found that our programs and procedures met or exceeded industry standards,” UnumProvident President Thomas Watjen says in a statement about the disclosure policy changes. “Nevertheless, we recognize that we must take steps to be more responsive to the changing environment in which we now operate.”

UnumProvident may make more changes as more information comes from regulators and the insurance industry, the company says.

“Contingent commissions,” or commissions tied to the performance of a block of business rather than a single policy, make up a small percentage of UnumProvident’s compensation arrangements, and UnumProvident may consider coming up with alternative arrangements “when there is more clarity on this issue,” Watjen says.