LICAC

Do you know your agent's commission and compensation?

Consumers are rarely informed of the amount of a commission, nor of other compensation (e.g., trips and prizes awarded by the insurer to top producers) that an agent may receive from making a life insurance policy sale. Even though the commission does not come out of the consumer’s specific policy account, commissions are ultimately paid indirectly by the consumer in the fees paid to the insurer. Consumers should be informed of commissions and other compensation earned by their agent related to their policy.

To learn more about hidden commissions, visit: https://www.lifeinsuranceconsumeradvocacycenter.org/our-issues/hidden-commissions/.

Some Indexed Universal Life Insurance Policies include anti-consumer features. These tricky policies can include:
1. The Multi-Year Indexed Strategy Trap
2. Illusory Guarantees
3. Use of Multipliers to Boost Illustrated Values

State insurance regulators should examine, through hearings or otherwise, whether these kinds of features are harming consumers, and how to address it.

To learn more about these tricky policies, visit: https://www.lifeinsuranceconsumeradvocacycenter.org/lack-of-transparency/especially-tricky-policies/.