TDI Recognizes IMSA as a Best Practices Organization

The Insurance Marketplace Standards Association (IMSA) commended the Texas Department of Insurance for issuing a Commissioner’s Bulletin affirming that its examiners routinely use information provided by IMSA-member companies.

According to the IMSA, Texas Commissioner of Insurance Jose Montemayor reported in a Jan. 28, 2004 Bulletin, “The Department examiners currently utilize information and data obtained from certain best practices organizations, such as the Insurance Marketplace Standards Association (IMSA), as they examine licensees that are members of such organizations. Consideration may be given to the documentation in determining the frequency of examinations; the scope of an ongoing examination, and/or the marketing and sales practices of a company, including such areas as; agent licensing, training, replacements, and advertising. The examiners may also make use of the documentation required by a best practices organization in reviews of other areas such as consumer complaint handling.”

Montemayor also said his department, in its continuing efforts to promote higher standards of market conduct by life insurers, “recognizes the value of utilizing and reviewing the work performed by best practice organizations within the regulatory framework. The dDepartment also encourages life insurance companies to become members of such organizations in an effort to promote higher market conduct standards and to facilitate the regulatory examination process.”

IMSA Executive Director Brian Atchinson said, “We commend Commissioner Montemayor for encouraging life insurance companies to join best practices organizations such as IMSA, the leader in setting ethical standards for the life and long-term care insurance and annuities product industry. IMSA’s market conduct assessment process, which includes a self and independent review of a member’s market conduct and compliance practices, is a model approach for self regulation, ethical behavior and best practices.”