Threat of Rate Inflation Would Inspire Procrastinators.

ATLANTA--(BUSINESS WIRE)--March 11, 1999--

RightQuote

The Direct-to-the-Consumer Financial Network

Threat of Rate Inflation Would Inspire Procrastinators to

Take Action

"If Only They Knew About Rule XXX"

Most signs of economic inflation send large numbers of consumers scrambling to re-balance their portfolios between securities and interest-bearing investments.

Unfortunately, signs of inflation in insurance rates create very little reaction because they are seldom noticed. Many Americans may be overlooking a looming insurance regulation called Rule XXX that signals a short term opportunity to beat life insurance rate inflation.

"If similar legislation were impacting investments, the amount of investors taking appropriate action would be significant. Unfortunately, many under-insured or uninsured consumers are totally unaware of Rule XXX," said Michael D. Levison, CEO of Coverdell & Company, the Atlanta-based financial marketing firm. Coverdell's RightQuote (http://www.rightquote.com) service is a leading player in the online term life insurance shopping arena.

What Is Rule XXX?

The National Association of Insurance Commissioners (NAIC), which advises state insurance departments on broad-based insurance issues, doesn't think insurers have been setting aside enough loss reserves for term policies with long-term premium guarantees. The NAIC is finishing details on a model Rule XXX that is expected to be adopted by many, if not all, states in late 1999 or 2000. The impact on the consumer will be higher rates, a shortening of rate guarantees on long-term policies, or both.

Unfortunately, consumer awareness of Rule XXX, and its impact, is limited. "While consumers ascribe high importance to properly insuring themselves, they don't particularly enjoy discussing or hearing about the topic of insurance," "Therefore, a big story like Rule XXX can receive very little press exposure and go largely unnoticed."

As a result, many Americans needing life insurance could miss the bottom of a dramatic rate deflation cycle. Levison cites a recent USA Today article showing that some term life insurance rates have dropped by more than 50% in the last five years. This dramatic rate decrease could be the driving force behind the NAIC's concern about the inadequacy of loss reserves.

What would happen if more Americans where aware of this impending regulation? Levison thinks that the typical level of procrastination amongst life insurance would drop dramatically.

"Statistics from a Conning and Company report show that while 16% of households are 'in the market' for insurance each year, only 7% buy in that same year. My hunch is that many more insurance shoppers would become policy buyers this year if they only knew about Rule XXX," said Levison.

Each month about 15,000 Americans get insurance information and quotes from some of the nation's highest rated insurance firms at the RightQuote insurance site. RightQuote was recently named the nation's highest rated online term life insurance shopping service by SafeTnet, the largest objective insurance information web guide.

RightQuote was also selected by a leading consumer interest publication as a site to visit when searching for online insurance information and competitive quotes.

Coverdell & Company, one of the nation's leading marketers of insurance and investment products, is a wholly owned subsidiary of MemberWorks, Inc. (NASDAQ: MBRSE), one of the largest and fastest growing direct marketers of membership service programs. Coverdell & Company currently offers to co-brand or private label its RightQuote technology for businesses that want to add insurance functionality to their web sites.

For more background information on Rule XXX, see the 11/5/98 article from the Insurance News Network at http://www.insure.com/life/triplex.html

Source: DigitalWork http://www.digitalwork.com