- Commissioner Wilcox next asked the group to turn to Section 14 on the annual report to the policy owners.
- He said the draft currently required an annual report that would be received each year, but did not specify the information that needed to be included in the report.
- He said the draft also provided for an updated illustration upon request, but did not have any requirements for what that would look like.
- Mr. Higgins said he also thought it was important to add an alert that there was something different, if in fact that was the case, so that the insured would understand the importance of requesting an in-force illustration.
- Commissioner Ruthardt emphasized that it was very important to get information to the policyholders on how their policy was doing.
1995-1, NAIC Proc.
In the alternative it was suggested that the provision be reworded to say: "The annual report shall provide notice that the policyholder may request an illustration of current and future values and benefits."
The insurer would look to the illustrations regulation or the disclosure regulation to determine which scale it would use.
2000-3, NAIC Proc.
- This can also allow for a low first-year target premium.
- On the other side, however, it may cause some difficulties in terms of the annual reporting to the policyholder if, indeed, the policyholder really pays attention to the statement sent to him.
-- Christian J. DesRochers
1983 - Universal Life, Society of Actuaries - 24p