The Insurance Bill of Rights: (Download-Click Here)
The Insurance Industry needs a playbook to protect and empower consumers and to provide Best Practice Standards for insurance agents, insurance brokers, insurance wholesalers, insurance companies and other members of the insurance industry. The Insurance Bill of Rights movement will revolutionize the insurance purchasing, insurance management process and place insurance consumers, insurance agents and insurance companies on the same page. Insurance is a large part of everyone's financial plan and guidelines are needed.
The Insurance Bill of Rights Requires Insurance Agents, Insurance Brokers, Insurance Companies and all of those involved in the distribution and servicing of Insurance Policies to place The Insurance Consumer’s Interests first to the best of their ability. Doctor's have the Hippocratic Oath and The Insurance Insurance Industry now has The Insurance Bill of Rights. Members of the Insurance Industry agree to adhere to these Best Practices:
The Insurance Bill of Rights (click on each right to learn more and find resources):
- The Right to Have Your Agent Act in Your Best Interest: to the best of their ability. Keep in mind that agents are not fiduciaries and are agents of the Insurance Company(ies). An agent recommendation should not be influenced by commissions, bonuses or other incentives (cash or non-cash). An agent should not collect a fee and a commission from the same client for the same work.
- The Right to Receive Customized Coverage Appropriate to Your Needs: Your potential coverage needs should be reviewed for
each line of coverage under consideration and take into account any existing coverage. Any new recommended coverage must fill a need (gap in coverage). Any replacement must be carefully reviewed with all pros and cons considered and presented in writing to the consumer.
- The Right To Free Choice: You have the right to receive multiple competitive options and to choose your company, agent & policy. Agents, brokers, and companies must inform you in simple language of your coverage options when you apply for an insurance policy. Different levels of coverage are available, and you have the right to know how each option affects your premium and what your coverage would be in the event of a claim.
- The Right to Receive an Answer to Any Question: You’re the buyer, you have the right to ask any question and to receive an answer. The answer should fully and completely address your question and/or concern in full and be understandable. If you don’t understand something, you as the buyer have a duty to ask questions, and if you still don’t understand, you shouldn’t buy that policy.
- The Right to Pay a Fair Premium: Full disclosure on how policy premiums are calculated and the impact of different risk factors specific to the type of coverage proposed. Also, information should be provided on factors that may reduce or increase the premium in the future.
- The Right to Be Informed - to receive complete and accurate information in writing – anything said or promised orally must be put in writing. This includes full Information on any recommended Insurance Company including name, address, phone number, website and financial strength rating(s).
- The Right to be Treated Fairly and Respectfully: To receive an answer to any question. This includes the right not to be pressured If there is a deadline, the reason must be presented. If an offer is too good to be true, then it most likely is too good to be true. Insurance Agents and Companies should keep information private and confidential.
- The Right to Full Disclosure and Updates: to receive notice of any changes in the coverage in easy to understand language and any relevant changes in the marketplace. All relevant information and disclosure requirements (required or not) on an insurance product must be presented to the client. To receive in writing a summary of all surrender charges, length of surrender period and any additional costs for early termination. In any replacement situation, all pros and cons must be submitted in writing.
- The Right to Quality Service and Fair Claims Handling – to have your coverage needs to be reviewed at any time upon request, whenever a major event would impact coverage and at least annually. To determine if changes have occurred with the client or in the marketplace that would dictate changes to the insurance coverage. This includes prompt assistance on any claims.
- The Right to Change or Cancel Your Coverage without any restrictions or hassles. The right to receive sufficient notice of policy cancellation.
Watch The Insurance Bill of Rights Video:
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