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Getting the best life insurance quote.
Copyright 2005 Stacey Zimmerman
Your life insurance quote is primarily dependant on a number of personal factors, namely your health, family history, lifestyle and age. It's not possible to physically change any of these factors and you definitely...
Having the Right Amount of Auto Insurance Coverage
Maybe you have auto insurance coverage now but do you ever wonder if it's enough if you are unfortunate enough to get into a car accident? Some people carry a combination of auto insurance coverages because carrying too little coverage can cause you...
Insurance versus assurance: what is the difference?
The world of finance is extremely complicated and there are many factors to consider when choosing any financial protection product. When looking for a policy you need to know what you are looking for and what is on offer in order that you get the...
The Traveller’s Insurance Checklist
Your trip is booked and all your reservations are made. The next thing on your "to do" list before you head off on that much deserved holiday is: Buy travel insurance. No doubt you have many questions that need answers before you can decide which...
Tips for Choosing a Life Insurance Company
More than 150 insurance companies offer thousands of life insurance products in the UK. Choosing the right company and right product from this bewildering choice is challenging. Fortunately, there are some common sense guidelines that will help...
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Insurance Regulators Focus on Abusive Sales Practices
State insurance regulators are focusing their efforts on a short list of five consumer problems areas related to the improper sale of variable annuities and life insurance. The problem areas include: 1) 1035 exchanges, 2) variable annuities inside of qualified accounts, 401(k)s or IRAs, 3) failure to fully disclose costs and fees, 4) comparing sub-accounts to mutual funds, and 5) improper or unrealistic product illustrations.
While the actual extent of problems in these areas is not known, some industry observers believe that one or more regulations was violated in the sale of the majority of variable annuities and variable life insurance polices. The vast majority of sales practice violations are not reported to the regulators because the investor is not even aware that a violation has occurred. Financial damage, if visible at all, is often not apparent until many years later.
If you believe that you have been the victim of sales misconduct when buying a variable annuity or variable life insurance policy, then you basically have two options: report the incident to the regulators in your state or consult a private adviser. Both are long and tedious processes, but only the second option is likely to result in a financial recovery if you have suffered a loss from an improper
sales practice. An apparent third option – reporting the problem to personnel in your investment company – is unlikely to result in any substantive corrective action because the automatic “denial of wrongdoing” mentality is deeply imbedded in the financial services industry. Investment representatives are routinely restricted from admitting wrongdoing or negotiating solutions with customers. These issues must be referred to the firm’s legal department where the individual is unlikely to make any progress without legal representation anyway. So this third option really is not really a separate strategy after all.
It might be smart to get an early opinion of an independent financial adviser and attorney in any case. Attorneys who handle these legal issues typically work in tandem with a financial adviser to identify, document and then redress problem areas. Some of these problem issues are addressed as class action claims, where others are handled on an individual case-by-case basis. It is usually necessary to demonstrate a realized financial loss or damage in order to successfully negotiate a financial settlement.
About the Author
Tony Novak is an independent writer and financial adviser in Narberth PA who who has consulted as an expert witness in sales practice disputes.
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