What is the primary purpose of the Consumer Bill of Rights in insurance?

The primary purpose of the Consumer Bill of Rights in insurance is to inform consumers of their rights regarding insurance coverage and claims handling. This initiative is designed to empower policyholders by ensuring they are aware of their rights, responsibilities, and the processes that govern insurance transactions. It helps consumers understand how they can protect themselves and navigate claims, making informed decisions about their insurance needs.

Having a clear understanding of their rights fosters transparency and encourages fair treatment from insurers. This objective aligns with best practices in consumer protection, allowing individuals to be informed advocates for themselves in the insurance marketplace. The focus is on promoting trust and accountability between consumers and insurance companies, rather than simply providing access to agents or imposing regulations such as standard pricing. The inclusion of these rights does not suggest that insurers can deny coverage arbitrarily; instead, they must follow established guidelines and provide justified reasons for any decisions made regarding policies and claims.