June 2021 – [BonkNote]

New Companies 1966 – Book – The Case Against New Life Insurance Companies, by Halsey Josephson 1967 – SOA – Digest of Discussion of Subjects of Special Interest, Society of Actuaries – 25p 1967 – SOA – New-Company Problems, Society of Actuaries – 38p [Bonk: ⇒ Connection] I will start by discussing the expansion and consolidation…

Surplus Surplus Notes Surplus Relief The availability of surplus sometimes constrains the growth of an insurance company. To optimize growth, a company under such constraint must develop equivalent profit standards for all opportunities that use surplus, such as sales of insurance products, acquisition of investments, or development of a sales force. 1981 – SOA -…

Nonguaranteed Non-Guaranteed Elements NONGUARANTEED PREMIUM He questioned the appropriateness of taking non-guaranteed elements and making them guaranteed as suggested as a penalty in the white paper. 1993-3, NAIC Proceedings Our Lexington report alluded to the controversial issue of nonguaranteed policy element illustrations. Currently the issue is being addressed by four different groups: NAIC – this…

Guarantees Guarantees Only 2005 – SOA – What’s Backing Your Life Insurance Guarantee? – [LINK]

Group Universal Life Insurance WILLIAM R. BRITTON, JR: We will take a current assessment of this phenomenon called group universal life (GUL). I’ll begin with overview and history, Ms. Herz will discuss reasons that employers and employees are interested in GUL, how well it is being accepted, and the market outlook. Mr. Duncan will concentrate…

Universal Life and Adjustable Life are Different Adjustable Life is quite different in form from Universal Life, largely because it retains the traditional principle that savings and insurance elements are intertwined–but we shall see that the same objectives can be accomplished. — Charles Trowbridge 1976 – SOA – Adjustable Life Products, Society of Actuaries -…

Universal Life is Easy to Understand …. I still feel conceptually that Universal Life is: much easier to explain, it is much easier for the consumer to understand, and I believe it will prove to be much easier to administer if for no other reason than you do not have to reissue every time there…

4 Percent Chalke and Davlin point out that a policy that provides whole life benefits assuming 10 percent interest is not a whole life plan if the guaranteed cash value is only 4 percent. Such a plan is term insurance only for a period of years. — Thomas G. Kabele 1983 – SOA – Universal Life…

E.U. – U.S. Insurance Dialogue Project Reports – NAIC New Initiatives for 2017-2019 and Focus Areas for 2018.pdf Key Elements of Regulations and Supervisory Practices in Respect of Group ORSA – Nov 2015.pdf The Way Forward – July 2014 Update.pdf The Way Forward – Objectives and Initiatives for the Future – Dec 2012.pdf Comparing Certain…

Moral Hazard Financial Crisis We argue that changes in the life insurance industry have created a nontrivial moral hazard. We document the industry’s shift from sales of life insurance to sales of mainly rate-of-return oriented investments like single premium deferred annuities (SPDAs) and guaranteed investment contracts (GICs). 1992 – FRB-Minneapolis – SPDAs and GICs: Like Money…