Survey: Consumers Confused On Insurance Oversight
By
Washington
Most Americans are unaware that life insurance is state regulated and would turn to a lawyer, rather than an insurance commissioner, to resolve problems with life insurers, says a new survey.
The survey, commissioned by the American Council of Life Insurers, found only about a third of consumers know insurance is state-regulated.
Moreover, the survey found, only 11% of consumers say they would try to resolve a complaint against a life insurer with a state insurance commissioner. Rather, 57% of consumers say they would turn to a lawyer.
Phil Anderson, senior vice president of government affairs for ACLI, says the survey reveals another reason Congress should create a federal regulatory option.
He notes that opponents of optional federal chartering (OFC) often cite consumer protection as a reason for their opposition. It is a legitimate issue, he says, but it is inaccurate to say consumers would be worse off under federal regulation than they are now.
Opponents of OFC say consumers would be more confused and have less opportunity to redress concerns under a federal system, Anderson says. But the survey shows consumers could not be more confused about regulation than they are now, he adds.
In recent testimony on OFC, Anderson notes, ACLI said consumers will have more uniform and consistent protections nationwide under a federal system.
Reproduced from National Underwriter Life & Health/Financial Services Edition, July 1, 2002. Copyright 2002 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.
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