A compliance officer, Mr. Nuttney said, needs to have a say in all marketing, not just the specific ethnic or racial market; field recruiting; and contact with underwriting and claims management.

He continued that compliance programs that balance risks will become more important with the greater possibility of fundamental long-term changes such as a federal regulatory or a self-regulatory framework.

Bruce Foudree, of counsel with the law firm of Lord, Bissell & Brook in Chicago, said companies need to get into a pattern of documenting what they do in the area of compliance.

Mr. Foudree noted that in areas where there is federal oversight such as homeowners insurance in relation to fair housing requirements, issues such as what percentage of marketing dollars were spent on ethnic and racial segments could be called into question.

He continued that if the fairness of such allocations are questioned, federal regulators will allow the courts to decide the answers.

Mr. Foudree noted that companies have to also comply with state requirements governing marketing. These requirements are making insurers careful when taking steps such as offering insurance contracts that are written in Spanish, he added. A policy written in Spanish, for example, should be clearly understandable, said Brian Atchinson, executive director of the Insurance Marketplace Standards Association, Washington.

Mr. Foudree continued that department staff at the state level should be able to read and approve such contracts, as well.

During the discussion, it was noted that some marketing brochures written in foreign language specify "For Reference Only." Also, in 80-90 percent of cases, contracts written in Spanish are handled manually rather than processed automatically.

Mr. Atchinson said that given these new challenges, it is even more important that insurers pay extra attention to oversight. "We have all learned a brand and a reputation can go negative." For instance, a brochure that is translated should be accurate in intent, he explained. Clear communication and follow-up with customers are also important points, he added.

It is important that products not be sold for the short term. This could leave middle- and lower-middle-class consumers concerned about price without insurance at a time when they might not be as healthy as when the original coverage was purchased, he noted.

According to a recent Harris poll, an agent's reputation for honesty was cited as an important factor for buying life insurance by 96 percent of respondents. The price of a policy was cited by 94 percent, and 90 percent cited a company's financial rating.

Companies face challenges meeting compliance requirements, Mr. Atchinson said. He noted one case in which it took two full years to get one non-English contract in one state approved.