Commonwealth Bank waited for close to two years to act on defects with its consumer credit insurance products and sales practices, the Royal Commission into banking misconduct heard yesterday.Rowena Orr, counsel assisting, made CBA's decision in early March this year to phase out two of its three main consumer credit insurance products the focus of the day. CBA had made its decision public and notified it to the commission on the very cusp of the current round of hearings in Melbourne.Orr narrated much of the CBA risk analysis and actions, or lack of them, in her questions to Clive van Horen, CBA's executive manager for retail products. Previewing the CBA case study on credit insurance for the commissioner, Kenneth Hayne, Orr explained that one theme was the disparity between the bank's disclosures "as conduct falling below community standards and expectations"."They were not described as misconduct as that term is used in the terms of reference," Orr said, leaving Hayne to weigh the difference. One topic, Orr said, "is the processes that CBA had in place to ensure that these products would only be sold to consumers who could obtain value from the products - in the sense that they would be eligible to make claims under all parts of the policy."A second topic of interest is the way CBA responded when it became clearthat Creditcard Plus insurance and loan protection product insurance were being sold to people who were not eligible to make claims under parts of the policy due to their employment status. A third topic of interest is CBA's decision, a fortnight ago, to cease selling Creditcard Plus insurance and part of the loan protection product."As framed by Orr, "CBA decided not to investigate the [insurance] issue in 2015."Challenged on this delay, van Horen said "our problem - ourmistake - one of a number - was to manage this sequentially, and sort out[credit card protection insurance] first and then move on to [personal loan] protection."Defending the bank, van Horen said: "all along our principle was that we would compensate customers, whatever the number was, to put them inthe right position."But, Orr asked, "There was no report to ASIC about the issue in 2015?""No," van Horen agreed."And the only action that CBA took in relation to the LPP product in 2015 was tomake changes to the [contact centre] scripts?" Orr asked."That's right," van Horen said, going on to allow that the bank "took no action in relation to digital sales of the product."Orr then walked van Horen through revenue and profit data for the trio of insurance products.Across all the products, Orr told Hayne, "there is A$151 million and the HLP product was the greatest contributor to that at $63 million."Orr asked: "Do you accept that [home loan protection] provides the biggest stream of premiums to CBA when compared with the Creditcard Plus and the PLP product?"Van Horen agreed.