Manulife Financial

Manulife Financial - IMSA


	·	U.S. Fast Facts
	·	IMSA
	·	Corporate Giving




	·	News Releases




	·	NY Licensed Financial Advisers
	·	NY Residents

Insurance Marketplace Standards Association (IMSA)

The Manufacturers Life Insurance Company (U.S.A.), (Manulife USA), a subsidiary of Manulife Financial Corporation, is a proud member of the Insurance Marketplace Standards Association (IMSA). IMSA member companies agree to follow a specific set of standards in their advertising, sales and services for individual life insurance and annuity products. Our Agent's and Company’s Codes of Business Conduct, along with IMSA's six principles, create the foundation of Manulife USA’s market conduct philosophy.

The IMSA assessment process provides a proactive step for the industry to take responsibility for self-regulation. Through its membership with IMSA, Manulife USA demonstrates its commitment to IMSA's Principles of Ethical Market Conduct. To become an IMSA member, Manulife USA has:

Committed to a tough set of voluntary marketplace standards
Conducted an internal assessment of its sales and service practices
Passed a rigorous external assessment by an IMSA qualified independent assessor

Having undergone the required assessment process, Manulife USA last renewed its IMSA membership in April 2001 for its individual life insurance operations, and in January 2004, IMSA’s certification was obtained for the first time for its annuity operations. The IMSA concept is ongoing, and continued membership requires the assessment process to be repeated every three years. For additional information on Manulife USA’s membership and participation in IMSA, select the following.

What You Need to Know about IMSA
IMSA's Principles and Code of Ethical Market Conduct

If you have questions regarding the participation of Manulife USA in IMSA, you may contact Manulife Financial’s U.S. Market Conduct and Compliance Management Department at 1-800-215-5444. For more information on IMSA Principles and Code of Ethical Market Conduct, visit the IMSA Web site at www.imsaethics.org.

What You Need to Know about the Insurance Marketplace Standards Association (IMSA)

Millions of Americans trust and depend on life insurance products for financial security. That's why ethical conduct in the insurance marketplace is critical for an individual company and for the industry as a whole. To help maintain high standards of marketplace behavior in the insurance industry the Insurance Marketplace Standards Association (IMSA) was established. Select any of the following for additional background information on:

What is IMSA?
What IMSA means to Manulife Financial
What IMSA means to Customers
What IMSA means to Distributors
What are some standards that IMSA members must meet?
What similarities do IMSA’s standards have to those under state regulations?
What must a company do to become a member of IMSA and maintain membership?
What are the rules for using a company's IMSA designation and logo?
What effect does a company's IMSA membership have on customers making insurance purchases?

What is IMSA?

IMSA (The Insurance Marketplace Standards Association) is a voluntary organization whose purpose is to promote high ethical standards in the sale of individual life insurance, annuity, and long term care products by its members. At this time, IMSA has not extended its standards and assessments to Group Pension or other financial products.

What IMSA means to Manulife Financial

Manulife Financial's reputation for sound, ethical business practices has long been a source of its strength. Distributors and customers see Manulife USA's integrity as one of its major assets. Manulife USA has adopted the Principles and Code of Ethical Market Conduct issued by The Insurance Marketplace Standards Association (IMSA) for its individually-sold life insurance and annuity products. These products are issued by The Manufacturers Life Insurance Company (U.S.A.) (Manulife USA), a subsidiary of Manulife Financial Corporation.

The IMSA Principles and Code serve as an industry standard. By incorporating these principles into its policies and procedures, Manulife USA provides additional assurance that it conducts business in a highly ethical and proper manner.

What IMSA means to Customers

Customers depend on life insurance and annuity products as part of their financial security. That's why it is so important for companies offering such products to conduct their business according to high ethical principles. Customers understand that ethical market conduct on the part of the company from which they buy helps provide peace of mind.

What IMSA means to Distributors

Distributors play an important part in building the public trust and confidence that millions of Americans have in life insurance products as part of their financial security. They understand why ethical conduct in the marketplace is crucial for an individual company and for the industry as a whole. Ethical market conduct is good business, and IMSA helps maintain high standards of ethics in the marketplace.

What are some of the standards that IMSA members must meet?

To adhere to IMSA standards, a company must meet a number of requirements, including the following:

Maintain policies and procedures that demonstrate a commitment to honesty, fairness, and integrity in all customer contracts involving sales and service of individual and annuity products
Emphasize to all employees and distributors the concept of ethical market conduct through ongoing communication and training programs
Review their advertising and sales materials regularly for clarity, honesty, fairness, and to ensure that they are current, accurate, and in accordance with laws and regulations
Monitor the sales process carefully on a regular basis and obtain and respond to customer feedback
Engage in active and fair competition, which includes appropriately replacing business in accordance with state and federal laws, and communicate this practice to distributors and employees involved in the sales process
Provide a means for fair and expeditious handling of customer complaints and disputes

What similarities do IMSA's standards have to those under state regulations?

IMSA standards are separate from but complementary to existing state regulations. When a company joins IMSA, it agrees to examine its internal procedures, set up and follow procedures specifically designed to promote ethical market conduct, and monitor these procedures to verify continued compliance with IMSA standards.

What must a company do to become a member of IMSA and maintain membership?

A company becomes a member by adopting IMSA's Principles and Code. A company must also undergo IMSA assessments and meet its rigorous standards.

First, there is an internal assessment by the company of its own policies and procedures designed to promote and maintain ethical behavior in the marketplace.

Second, the company undergoes an assessment by an external qualified independent assessor, such as an accountant, attorney, management, or actuarial consultant certified by IMSA to assess that the company’s practices have met IMSA standards.

The assessment and review process must be repeated every three years in order for a company to remain a member of IMSA.

What are the rules for using a company’s IMSA designation and logo?

IMSA member companies are strongly encouraged to use the IMSA logo in all internal publications as well as sales literature and advertising in both print and electronic formats. The IMSA logo designates company membership, not the endorsement of a specific product or company representative. However, distributors can include their identities on company brochures containing the logo, as long as it is clear that the logo applies only to the company. Manulife USA has specific guidelines on the use of the IMSA designation and logo which are included in its U.S. Sales and Advertising review procedures.

What effect does a company’s IMSA membership have on customers making insurance purchases?

New research conducted by IMSA emphasizes the importance of a company's IMSA membership to prospective policyholders. Sixty-seven percent of survey respondents said they would be more likely to buy a life insurance policy if an agent could show that the policy was sold by a life insurance company that belonged to an organization promoting ethical market conduct and requiring its members' sales practices to meet certain standards. The percentages more specifically are as follows:

23% Much more likely to purchase
44% Somewhat more likely to purchase
29% No more likely to purchase
2% Would not purchase
2% Don't know

If you have questions regarding the participation of Manulife USA in IMSA, you may contact Manulife Financial’s U.S. Market Conduct and Compliance Management Department at 1-800-215-5444. For more information on IMSA Principles and Code of Ethical Market Conduct, visit the IMSA Web site at www.imsaethics.org.

IMSA's PRINCIPLES & CODE OF ETHICAL MARKET CONDUCT

IMSA membership shows customers that a company has made a commitment to promoting high ethical standards. It demonstrates that this company has undergone rigorous internal and independent assessments to ensure that it meets IMSA's Principles and Code of Ethical Market Conduct.

PRINCIPLE 1: To conduct business according to high standards of honesty and fairness and render that service to their customers which, in the same circumstances, it would apply to or demand of itself

Manulife USA demonstrates its commitment to Principle 1 by:

Obtaining relevant information from its customers to reasonably determine their insurable needs or financial objectives and assisting them in meeting those needs or objectives
Complying with IMSA's Principles and Code and all applicable laws and regulations
Participating in external activities that support the enhancement of the insurance industry's ethical market conduct practices
Adopting a written statement indicating full support of the IMSA program

PRINCIPLE 2: To provide competent and customer-focused sales and services

Manulife USA demonstrates its commitment to Principle 2 by:

Using selection, licensing, and appointment procedures to ensure that they are represented by well-qualified individuals who sell their products
Providing materials to train distributors and employees about their products, operations, compliance with laws and regulations, and market conduct related issues
Encouraging employees and distributors to participate in continuing education programs

PRINCIPLE 3: To engage in active and fair competition

Manulife USA demonstrates its commitment to Principle 3 by:

Establishing guidelines for fair competition
Providing customers with information they need to evaluate the appropriateness of a replacement
Monitoring replacement activity with a system to identify, track, and address deviations from replacement guidelines

PRINCIPLE 4: To provide advertising and sales materials that are clear as to purpose and honest and fair as to content

Manulife USA demonstrates its commitment to Principle 4 by ensuring its sales and advertising materials are:

Accurate, fair, complete, and contain appropriate disclosures
In compliance with applicable laws and regulations related to advertising, unfair trade practices, sales illustrations, and other similar provisions
Comprehensible in light of the complex products being sold
Consistent with making buying decisions about what is appropriate for them

PRINCIPLE 5: To provide fair and expeditious handling of customer complaints and disputes

Manulife USA demonstrates its commitment to Principle 5 by:

Ensuring that complaints are identified, evaluated, and handled in compliance with applicable laws and regulations related to consumer complaint handling
Providing an easily accessible way for customers to communicate complaints and analyzing them to identify and eliminate root causes
Displaying good faith efforts to resolve complaints and disputes without resorting to civil litigation

PRINCIPLE 6: To maintain a system of supervision and review that is reasonably designed to achieve compliance with these Principles of Market Conduct and the Code

Manulife USA demonstrates its commitment to Principle 6 by:

Having management establish policies and procedures reasonably designed to comply with the Principles and Code
Establishing an adequate system of supervision of the sales and marketing activities; for distributors, the supervision may be delegated to independent intermediaries, although the ultimate responsibility is borne by the Company
Providing training on the Company's policies and procedures, the Principles and Code, and applicable laws and regulations
Monitoring the system of supervision including enforcing measures when violating its policies and procedures

Manulife Financial's corporate values are symbolized by the acronym " P.R.I.D.E.," which affirms the importance of fair and honest business practices through its emphasis on professionalism, providing real value to our customers, and integrity. These values are an intrinsic part of our corporate culture. Seen in this light, ethical market conduct is another important step on a path that is already familiar to us. By articulating and instituting IMSA principles into our daily business practices and aligning them with our core values, the Company will continue to earn the respect of our employees, distributors, industry peers, and, most importantly, our customers. In this way, we can ensure that Manulife Financial maintains the trust and business of our customers and distributors, now and in the future.

If you have questions regarding the participation of Manulife USA in IMSA, you may contact Manulife Financial’s U.S. Market Conduct and Compliance Management Department at 1-800-215-5444. For more information on IMSA Principles and Code of Ethical Market Conduct, visit the IMSA Web site at www.imsaethics.org.