Presented by Tony Steuer, CLU, LA, CPFFE

Insurance Consumer Bill of RightsThe Insurance Consumer Bill of Rights was created to ensure that Consumers

have all of the necessary information and that can be easily provided by Insurance Agents and Companies. All of this is readily available and will allow Consumers to gain the most benefit from their insurance which is a key part of

any financial plan. Agents and Insurance Companies will benefit by having educated and satisfied clients. Insurance Premiums can approach or even surpass monthly housing costs for most Americans (adding in all types of

insurance including health).

A Penny Saved Is A Penny Earned- Benjamin Franklin

Follow the Golden Rule: Do Unto Others As You Would Do

Unto YourselfA great way to think about this is: would you take this same action if you had to explain it to your 7 year old child? Or any 7 year old

child?

‘nuff said - Stan Lee

The Right to Have Your Needs Reviewed and to be presented with products appropriate to your needsIf the only tool you have is a hammer then every insurance need looks like a nail. Make sure that you have the right product that

will provide coverage for the risk that you are protecting.

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The Right to Have the Agent Act in Your Best Interest to the best of their ability- to have the right policy, at a long term affordable premium and/or benefit (and is the best premium for you). Remember an agent is an agent of the company and has to act in that manner.

Remember, that you are using an agent for their expertise and knowledge of insurance products and the marketplace. An insurance agent should take the time to fully understand your needs and to get you the right product. If you have a need to protect your income, you need a disability insurance policy

not a life insurance policy. Caveat: By definition of law - agents are obligated to act on behalf of their

principal -the insurance company

The right to receive full, up-to-date, truthful & accurate information - Full Disclosure. All relevant

information and disclosure requirements (required or not) on an insurance product must be presented to

the client.

You have the right to receive complete information. For example, if you receive an insurance document (policy, proposal, etc.), you should receive

every page (and look at it). There is no reason that relevant information should be hidden and it’s up to you as the buyer to decide what is useful in

your decision-making process, not someone else’s. Information should also be the most up-to-date available from the insurance company.

The right to receive in writing a summary of all surrender charges, length of surrender period and any additional costs for early

terminationAll surrender charges, how long the surrender charges will last, all

expenses and all fees should be disclosed. No reason for you to not know the true costs of your insurance policy. For example, there’s no

reason to have an insurance contract that has a longer surrender period than the insured’s life expectancy - example, an annuity sold to someone

who’s 80 years old with a ten year life expectancy and a fifteen year surrender charge period.

The right to receive all information in writing - anything said or promised orally must be

put in writing.

A written record serves everyone well and ensures that there are no issues of he said/she said. If someone is willing to say

something out loud, they should be willing to put in writing. This is for the safety of consumers and agents and can help prevent

future misunderstandings. Image courtesy of Pong at FreeDigitalPhotos.net

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 as the buyer have a duty to ask questions and if you still don’t understand, you shouldn’t buy that policy.

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The Right to Receive Full Information on any Recommended Insurance Company including name, address, phone number,

website and financial strength rating.

You have the right to know anything and everything about the insurance company that is issuing your insurance policy. Insurance policies can remain in-force for decades, so you want to do your best to choose a company that will be around to pay your claim. Be sure to ask for a company’s financial strength ratings with A.M. Best and Standard & Poor’s, Moody’s or Fitch)

Fraud tip: Many fraudsters make up companies that don’t exist - make sure the recommended insurance company is real.

The Right To Free Choice: You have the right to receive multiple competitive options and to choose company, agent or product.

This is a free country, you have the right to choose the insurance product that best fits your needs, the right to shop around and to

do business with whomever you choose.

You Better Shop Around - The Miracles

The Right to Be Informed of How Policy Premiums and Performance May Changed

Based on Policy Specific FactorsAlmost every type of insurance policy premium can increase (or even

potentially decrease) dependent upon inflation, interest rates (that the company earns on their investment portfolio), claims experience, etc. An insurance company must be profitable in order to stay in business and be

around to pay claims. The issue is when companies raises premiums unnecessarily. Policy Owners should be aware of how changes in any of these components will affect their premium and/or policy performance.

Image courtesy of Stuart Miles at FreeDigitalPhotos.net

The Right to Not 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

If you say stop, that needs to be respected. If you are not ready to act, there are few deals that won’t be available tomorrow. Not to say that it’s okay

putting off purchasing valuable coverage, it is okay to make sure you take the time to feel comfortable with your decision and that you understand it.

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The Right to Not Be Charged Twice For the Same Service: An agent cannot collect a fee and a commission from the same client for the same

work. This includes any conflict of interest.

Beware of agents who charge you a fee for planning and/or consulting and then offer you a product upon which they’ll receive a commission. Commissions are designed to compensate

the agent for their time in helping clients plan and review. Don’t pay twice for the same service.

The Right to Compensation Disclosure upon request.

A few States have enacted this as law that a consumer has the right to know the amount of commission paid on the sale of an insurance product. Some States do not require this.

If an agent will not disclose to you the compensation they are to receive on different products, then you have to ask what the reasoning is. A caveat: a higher commission does

not always mean an inferior product so the amount of commission paid is one indicator, however, it should not be the only factor considered when choosing a product.

The Right to be informed of any changes in the marketplace that will

impact your insurance coverage.You should be immediately be made aware of any changes to your insurance coverage that will impact your policy. For example, if the

interest rate on a Universal Life policy has declined, it most likely will mean a higher premium. Has your insurance company told you?

Image courtesy of Stuart Miles at FreeDigitalPhotos.net

The Right to have anyone you choose attend a meeting or join

a call. No isolation.This right is a reminder that you can have any other relative, advisor, friend

or other person join you when you are reviewing an insurance product. This is especially helpful if you are having any issues with understanding an

insurance product. A second set of eyes and ears is always helpful.

The Right to Full Disclosure on any replacement (written comparison of

current & proposed coverage) to include surrender charges (or related charges).

Replacements of an existing insurance policy can truly be a double-edged sword and every type of insurance policy has a different set of pros & cons in terms of a

replacement. For example, on an errors & omissions policy, does the new policy cover prior acts? On an annuity, is there a surrender charge, are you giving up a higher guaranteed interest rate? On a homeowners policy, do you have the same definitions of coverage. Take the time to carefully consider all of the changes that occur in a replacement. If you’re working with an agent, have them put it in writing.

The Right to PrivacyYou have the right to not have your information shared with anyone else.

Your information is just that - your information! No sharing allowed.

Image courtesy of Stuart Miles at FreeDigitalPhotos.net

The Right to Confidentiality

The information that you share with your insurance agent should not be shared with other except for those the insurance agent is legally obligated to share the

information with such as the insurance company and it’s representative’s.

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To sign the petition supporting The Insurance Consumer Bill of

Rights click here

Thank you for taking the time to learn more and for supporting The Insurance Consumer Bill of Rights.

For information on the Insurance Quality Mark and to find an insurance agent go to www.ultimateinsurancelinks.com - if you are an agent, visit www.ultimateinsurancelinks.com to apply for the Insurance Quality Mark.

To learn more about Tony Steuer, CLU, LA, CPFFE visit www.tonysteuer.com for free resources and information on his award winning books.