FOR IMMEDIATE RELEASE

NAIC HOLDS PUBLIC HEARING ON
READABILITY STANDARDS
Clarifying and Simplifying Language in Insurance Policies Focus of Hearing

DENVER (March 28, 2010) — The National Association of Insurance Commissioners (NAIC) held a public hearing today to explore the issue of readability standards and the use of plain language in insurance policies. Three panels consisting of insurance regulators, NAIC consumer representatives and insurance industry representatives provided testimony and presentations at the hearing. The NAIC’s Consumer Connections Working Group began exploring the issue of readability at the 2009 Winter National Meeting in San Francisco.

“The hearing provides an important starting point for discussion on the issue of insurance contract readability standards,” said Wayne Goodwin, North Carolina Insurance Commissioner. “The current economic downturn makes it increasingly important that consumers are able to understand their insurance policies so they are not at a financial disadvantage and can make well-informed decisions about their insurance needs.”

The readability hearing focused on the following issues:

• To which lines of insurance should readability standards apply?
• Should an entire insurance policy be required to be scored?
• Should defined terms in a policy be included in the scoring process?
• Should the readability standard score continue to be the current Flesch Reading Ease Score (a number from 0 to 100) or should it be changed to another measure (such as the Flesch-Kincaid Grade Level)?
• What other logistical questions are states likely to encounter if they move forward to revise their standards?

AUDIO available (MP3 files, approx. 30 mins each): File 1 | File 2 | File 3 | File 4

Testimony:
Consumer Panel | Regulator Panel | Industry Panel

Click HERE for additional materials.
 

About the NAIC

Formed in 1871, the National Association of Insurance Commissioners (NAIC) is a voluntary organization of the chief insurance regulatory officials of the 50 states, the District of Columbia and five U.S. territories. The NAIC has three offices: Executive Office, Washington, D.C.; Central Office, Kansas City, Mo.; and Securities Valuation Office, New York City. The NAIC serves the needs of consumers and the industry, with an overriding objective of supporting state insurance regulators as they protect consumers and maintain the financial stability of the insurance marketplace. For more information, visit www.naic.org.

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