Regulators have long sought to make it easier for consumers to comprehend the terms of insurance contracts by insisting that policy forms be written in language that most consumers can understand. They typically do this by requiring that policy language meet certain quantitative "readability" standards.
But if readability standards measure the degree to which policy forms are intellectually accessible to consumers, what standards address the physical accessibility of policy forms to consumers?
In response, The National Assn. of Insurance Commissioners (NAIC) has formed a Transparency and Readability Working Group to investigate the matter and propose solutions, some of which could target the agent community. NAIC is less concerned if consumers are able to comprehend the information contained in the policy form, and more about the ability consumers have to obtain and read the forms, or to otherwise obtain precise information about contract terms, prior to purchasing coverage.
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