MARYLAND INSURANCE ADMINISTRATION
JUNE 24, 2004
IX. ADVERTISING REVIEW
In reviewing sales procedures the examiners noted one presentation that may confuse individuals. Agency staff and agents inform policyholders that if the premium payment mode is changed from monthly to an annual, the policyholder will get one month’s premium free. The examiners believe the intent of that statement is to educate policyholders to the savings that
occur when this change is made.
The change in
policyholder changes from a monthly premium premium will not be due for 13 months.
premium mode does mean that if the to an annual premium mode that the next
The examiners noted one complaint from a policyholder that believed the premium mode change made at the beginning of the policy year meant the premium would not be due for 13 months.
MET LIFE REPORT NO. 786-01