Bonk

  • 2018 - SquirePattonBoggs - State Insurance Regulation – Increased Disparagement of the Regulatory Framework and a Call for Action, by Mary Jo Hudson, Director of the Ohio Department of Insurance (2007-2011) - 7p
  • 2012 0718 - Hinerman - Life Insurance Reality Show Continued! by Ed Hinerman - [link]
    • Letter - Consumer to Ohio Department of Insurance
    • I feel duped, betrayed, highly vulnerable, deceived or totally led astray. I believe that the agent(s) who sold me ‘life’ insurance in 2002 misrepresented the policy.
    • I was told that paying a premium of $4000/yr would have me paid up in full in 20 years.
    • 6. About May of 2012 I received notice from Protective Life that several things would happen:
      • on my 80th birthday I would no longer be insured or if I was I would have to pay a higher premium. No amount was specified. What else might happen I couldn’t tell because I was not sure of all that was written and how confusing it was because I had ‘life’ insurance.
      • My cash value of the policy was dropping drastically.
      • I did not have life insurance; rather I had universal life (which I thought was life insurance).
    • 12. I called again and wanted to know what it would take for me to continue my insurance. Protective Life sent me an ‘Illustration.’ In that document were terms I didn’t understand such as ‘guaranteed assumptions’ and ‘non-guaranteed assumptions current.’
    • 13. In order to understand the ‘Illustration’ I went to a local insurance agent and asked for his help. I found out that the ‘guaranteed assumptions’ was the flat 4%. The non-guaranteed assumptions’ was a set of rosy numbers showing what Protective’s investments on my policy would be valued at. But, the non-guaranteed assumptions didn’t apply to me because I was only guraranteed 4%. Why the second column (non-guaranteed) was there, I can only guess. The full meaning of the elements of this paragraph are still unclear to me because I have been unable to get full clarification from Protective and what I now ‘know’ was clarified only by my local insurance agent, not Protective..

Also, y'know how one of the big debates is "Is this Policy Overview"  a 

Shopping Tool or not.... Birny has said that the Life Insurance Disclosure Model Regulation clearly comtemplates a shopping tool....and I couldn't figure out why until he said something like the model regulation clearly contemplates a shopping tool based on "Section 2. Purpose A. The purpose of this regulation is to require insurers to deliver to purchasers of life insurance information that will improve the buyer’s ability to select the most appropriate plan of life insurance....  "  and he emphasised "Plan of Insurance".   

 

I think there is a distinct difference between "Plan of Insurance" and "Contract of Insurance".    A Plan of Insurance is