Q: What is IMSA?

A: IMSA stands for Insurance Marketplace Standards Association. IMSA promotes high ethical standards in the sale and service of life insurance, annuity and long-term care products.

Q: What standards must IMSA members meet?

A: Each IMSA-member life insurance company commits itself in all matters affecting the sale of individually-sold life, annuity, and long-term care products:

1. To conduct business according to high standards of honesty and fairness and to render that service to its customers which, in the same circumstances, it would apply to or demand for itself.
2. To provide competent and customer-focused sales and service.
3. To engage in active and fair competition.
4. To provide advertising and sales materials that are clear as to purpose and honest and fair as to content.
5. To provide for fair and expeditious handling of customer complaints and disputes.
6. To maintain a system of supervision and review that is reasonably designed to achieve compliance with these Principles of Ethical Market Conduct.

Q: How do IMSA's standards affect me?

A: IMSA's standards help assure that a company continues to commit itself to honesty, fairness and integrity in all customer contacts involving the sale and servicing of individual life insurance, long term care insurance and annuities. As part of that commitment, the company carefully monitors the sales process, its employees and agents on a regular basis. The company develops policies and procedures to assure that customers receive information they need to make decisions about purchasing and/or replacing policies. The company also maintains a system to respond expeditiously to customer concerns and complaints.

Q: What's the difference between IMSA's standards and those required by state regulation?

A: IMSA's standards complement those required by state regulation, but in some instances are more rigorous than current regulatory requirements. IMSA member companies agree to set up and follow procedures specifically designed to promote ethical market conduct and agree to monitor those procedures to verify continued compliance with IMSA standards.

Q: How does an insurance company become an IMSA member?

A: An insurer becomes a member by adopting IMSA's Principles and Code and by implementing policies and procedures to meet IMSA's rigorous standards. To demonstrate its commitment, the insurer undergoes an assessment by an outside, independent examiner such as an accountant, attorney, actuarial or management consultant who is certified to assess that the company has met these standards. If the independent assessor determines that the insurer's systems and programs to promote and maintain ethical behavior meet IMSA's standards, the insurer earns an IMSA membership for three years. The assessment and review process must be repeated every three years in order for a company to remain a member of IMSA.

Q: Should I only look at IMSA member companies when shopping for an individual life insurance policy, long term care insurance or annuity?

A: Choosing a life insurance company is an important decision, and you should consider many factors. A number of legitimate business decisions may have guided a company's decision not to qualify for IMSA membership at this time. IMSA membership is not the only indicator of a company's commitment to ethical market conduct. However, IMSA membership could be an important consideration for you. It is further evidence that a company is committed to high standards and has established market conduct policies and programs to recognize customers' needs.

Q: Where should I direct a complaint against an IMSA member company?

A: We recommend that you contact your insurance company and follow their complaint handling procedure. In many cases, people find that insurers are eager to resolve customers' problems and complaints.

Should you not receive a satisfactory response to your complaint, you may then forward a copy of your original letter to IMSA. It is our policy to forward all complaints to our member companies and request that they respond directly to the customer and copy IMSA on that response.