Make market conduct a key corporate value

Article Abstract:

Insurance companies should dedicate themselves to ethical marketing practices, first by acknowledging the existence of a problem. Next the company should circulate to all employees a policy statement embracing the rules of the National Assn of Securities Dealers. Other steps include auditing sales and training materials and making necessary revisions. Both agents and companies benefit from maintenance of high ethical standards.

Business Ethics

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Adopt suitability rules or face new regulations

Article Abstract:

Suitability is becoming a significant issue in the life insurance industry. The National Association of Securities Dealers and Life Insurance and Unit Trust Regulatory Organization in the United Kingdom have developed standards to govern the sale of life insurance products. Both models require that insurance sales representatives understand clients' needs and establish insurance contracts which are appropriate to those needs.

Column, National Association of Securities Dealers

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More mutuals take the pledge

Article Abstract:

Applicability of Generally Accepted Accounting Principles (GAAP) Interpretation 40 issued by the Financial Accounting Standards Board in Mar 1993 becomes effective for fiscal years beginning after Dec 15, 1995. Interpretation 40 does not allow mutual insurance companies and affiliated businesses to use statutory accounting practices to develop GAAP financial statements.

Accounting Methods, Accounting, Financial Accounting Standards Board

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