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(November 14, 2008) Insurance regulators are on the right track, but are still aiming too low with proposals for oversight of incidental insurance sales, according to Advocis.

A recent report by the Canadian Council of Insurance Regulators (CCIR) and the Canadian Insurance Services Regulatory Organizations calls for mandatory training and supervision of sellers by the insurer, and leaves the door open for provincial licensing.

“It has been Advocis’s position all along that sales representatives be provincially licensed, pass certain educational courses and be adequately supervised,” said Greg Pollock, Advocis’s new president and CEO. “Individuals selling this type of insurance should be required to participate in continuing education and carry liability insurance. And companies and individuals that sell these products should comply with enhanced consumer disclosure requirements.

“While the report is a step in the right direction, and a few of Advocis’s recommendations made their way into it, the proposals didn’t go far enough.”

One of Advocis’s main complaints is that the report leaves it up to the consumer to determine suitability of the product. The main thrust of the report was to call for the use of plain language on forms, and to recommend a longer cooling off period, to allow the consumer to consult a professional.

“This isn’t over for our members,” says Pollock. “The door is still open. Next, we take this issue to the provinces and work with them to see that consumers get the protection they deserve and financial advisors and planners get the level playing field they deserve.”

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Penncorp offers LTC policy

(November 14, 2008) Penncorp Life Insurance has announced the launch of the One Step Long Term Care Plan, which provides long-term care coverage for clients who lose the ability to conduct one of the activities of daily living. Most other products require the insured to lose the ability to do two of the activities.

“People are looking for affordable solutions, and with this product you can choose benefits of $20 to $50 per day for coverage lasting up to 1,800 days,” says Eli Pichelli, Penncorp’s vice-president of marketing and sales.

The product is available to people between the ages of 30 and 70 years.

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IBC warns of telephone fraud

(November 14, 2008) The Insurance Bureau of Canada (IBC) is warning consumers to safeguard their personal information, after reports of telephone calls from con artists claiming to be insurance agents.

The caller typically claims to be from the policyholder’s insurance company and demands the immediate payment, by credit card, of an outstanding amount on the client’s premium. The demand is backed by a threat to terminate the policy if the payment is withheld.

“The bottom line is that you should never divulge financial information during a phone call you did not initiate, and your insurance company would never ask you to,” said Don Forgeron, vice-president, Ontario, IBC.

Organized crime is suspected, as the calls have targeted people across the country.

(11/14/08)