Incidental selling of insurance consultation paper meant to trigger discussions

An unsuitable product might lead consumers to pay for insurance they do not need, pay for coverage for claims for which they are not eligible, or obtain a claims result that they did not expect, according to a consultation document issued by Canadian insurance regulators.
The paper, ‘Incidental Selling of Insurance,’ was recently released by The Canadian Council of Insurance Regulators (CCIR) and The Canadian Insurance Services Regulatory Organization (CISRO).
The paper includes discussion about a variety of topics related to incidental selling of insurance: suitability and documentation, coverage and claims, potential conflict of interest, disclosure requirements and availability of statistical information related to the incidental selling of insurance (ISI).
The paper notes many ISI sellers are perceived as having no obvious incentive to ensure product suitability to the specific consumer, though the consumer may not realize this.
It goes on to note that consumers are left to self-assess their eligibility for coverage based on the wording of the certificate or policy.
Due to the abbreviated nature of many application forms, consumers may not, in fact, have the coverage they believe they have. In some cases the consumer, or his or her heirs, will not know that he or she was actually eligible for coverage until after a claim is filed, the paper notes.
The deadline for submissions to the CCIR-CISRO based on the consultation paper is Apr. 27, 2008. The paper is available at: http://www.ccirccrra.org/CCIR/publications/index_en.htm.