The "Milquetoast" enforcement of the NSSTA Code of Ethics may be giving certain members of the settlement industry a false sense of security.
The Principles of Ethical Market Conduct of the Insurance Market Place Standards Association (IMSA) are:
- conduct business according to high standards of honesty and to render that service to my customers
- provide competent and customer-focused sales and service
- engage in active and fair competition
- provide advertising and sales materials that are clear as to purpose and honest and fair as to content
- provide for fair and expeditious handling of customer complaints and disputes
- maintain a system of monitoring that is reasonably designed to achieve compliance with IMSA Principles.
IMSA is a nonprofit, independent organization created to strengthen consumer trust and confidence in the marketplace for individually sold life insurance, long-term care insurance and annuities. IMSA-qualified companies commit to maintaining high ethical standards and to being fair, honest, and open in the way they advertise, sell and service their products.
Why should you care?
ALL of the structured annuity companies that are members of the National Structured Settlement Trade Association ( NSSTA) are "IMSA Qualified Companies". The IMSA Board includes members of one NSSTA annuity issuing company, the parent of another and two former structured annuity issuing members. The only non IMSA qualified structured annuity issuer is Symetra Life Insurance Company, which is not a member of NSSTA.
The above principles ARE part of the contractual provisions of most producer contracts with insurers today. If you sign one of these contracts you state that you WILL follow these principles.
BEFORE you advertise, check your advertising materials, including your web site to be sure that you are not violating your contracts and jeopardizing your direct access to markets. BEFORE you make a mutually exclusive statement consider the consequences.
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