Insurance coverage Model Promoting Versus Insurance coverage Firm Therapy | Property Insurance coverage Protection Legislation Weblog


Sarah Parker wrote me, forwarding a fast studying weblog, Liberty Mutual to Refund $7.7 Million in Consent Order: What Minnesota Policyholders Must Know. I consider she despatched it to me due to my latest put up, Liberty, Liberty, Li-ber-ty.  

One of many vital factors of her put up was the complexity of many giant insurance coverage organizations, which many suppose are only one firm underneath one model: 

To most of the people, they could solely see a primary commerce identify because the model providing their insurance coverage coverage. Nevertheless, behind the scenes, the precise phrases of their coverage, the charges they’re supplied, and the regulatory compliance behind that coverage could be managed by a subsidiary.

The naming of a number of firms in such orders underscores the complexity of enormous companies and the regulatory panorama they navigate. With every state having its personal laws, managing these can get complicated!

It’s a testomony to the thoroughness of regulatory our bodies in guaranteeing that each entity, no matter its relationship with a mum or dad firm, stays compliant with the regulation.

For shoppers, it’s a reminder that the model identify they’re aware of may symbolize an internet of interconnected firms working collectively to supply their companies.

Insurance coverage manufacturers usually promote worth and likewise point out one thing about honest claims service. In Insurance coverage Firm Ads and Guarantees of Peace of Thoughts Versus the Actuality of Claims Therapy, I urged that regulators require insurance coverage firms to show over the interior claims working tips to find out if the insurance coverage firms are really offering that honest claims service: 

Why shouldn’t insurance coverage regulators require insurance coverage firms to supply claims bulletins and claims tips about how claims might be dealt with on the level of sale and through the claims course of? If the insurer is performing in good religion, why wouldn’t it be afraid to show over and publish these directives? It would result in significantly better and honest remedy, which is promised within the first place.

The federal authorities has its flood claims guide publicly accessible for all to see how adjusters are presupposed to deal with claims. Why shouldn’t there be a rule supported by the Nationwide Affiliation of Insurance coverage Commissioners requiring all insurance coverage firms to publish their claims manuals relating to the dealing with of first-party property insurance coverage insurance policies on-line? What’s there to cover?  

I’ve by no means heard of an insurance coverage firm publicly saying this is able to be dangerous public coverage. Such a rule might cease a number of the dishonest of dangerous market gamers and supply higher belief within the trade. 

Thought For The Day 

An absence of transparency leads to mistrust and a deep sense of insecurity.

—Dalai Lama


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