Reasonable Person As in every other business, an insurance agent’s primary enterprise is to sell insurance, a vocation no adult consumer would confuse with a religious order.[12] Concomitantly, a reasonable buyer of insurance (or any other product) must, at peril of caveat emptor, act as a reasonable consumer, e.g., research her needs from multiple sources and price-shop for policies.[13] [12] “[F]or…

Read More

Consumer Outcomes bonknote.com/2022-0908-gov-senate-current-issues-in-insurance-sandbox/ Legal Cases Complaints 2016 0901 – WSJ – Life Insurance Customers Push Back Over Surprise Cost Increases: Policyholders are filing suit, as big U.S. life insurers blame the Federal Reserve’s decision to keep interest rates lower for longer, by Leslie Scism – [link-Gift] 2016 0813 – NYT – Why Some Life Insurance Premiums…

Read More

NAIC/Consumer Liaison Committee – NAIC 2023 0321 – NAIC/Consumer Liaison Committee – 6p (p3-4) – Richard Weber (Life Insurance Consumer Advocacy Center—LICAC) 5. Heard a Presentation Calling Attention to the Dilemma of Current Assumption Policy Illustrations Weber provided some simple graphic views of variable universal life policies and said an illustration showing a $5,900 annual…

Read More

Consumer Protection Policyholder Protection CFPB CFPA DOL – Fiduciary NAIC – Annuity Suitability SEC – Reg BI – Regulation BI Unfair Trade Practices Courts – Legal Cases – Lawsuits – Class Actions – MDL’s Administrative Actions Enforcement Actions (p25) – Michael McRaith (NAIC / Illinois Insurance Regulator) – So the real question is what is…

Read More

Policyholder Orphaned Policyholder Behavior Policyholder Options POLICYHOLDER PROTECTION Consumers Consumer Education Confusion

Read More

Policyholder Options Many insurance contracts offer the policyowner options regarding premium payment, benefit patterns, and policy loans. This flexibility means that many different patterns of future cash flow could arise under the contract. (p6) 2002 09 – AAA – Fair Valuation of Insurance Liabilities: Principles and Method, American Academy of Actuaries – 48p The ACLI’s Dolan…

Read More

Policyholder Protection Consumer Protection The fundamental tenet of our U.S. system is to protect policyholders by ensuring the solvency of the insurer and its ability to pay insurance claims. (p36) —  Prepared Statement of Kevin M. McCarty, Commissioner Florida Office of Insurance Regulation – On Behalf of the National Association of Insurance  2015 0428 – GOV…

Read More

Policyholder Behavior IAIS Question 83: NAIC Response: Lapse risk is an example of an overall important category of policyholder behavior, which is an important risk in a number of products such as universal life and variable annuities.  (p11) 2015 0213 – IAIS – IAIS Insurance Capital Standard Public Consultation Document – Final NAIC comments –…

Read More

Service First of all, I believe there is cause for concern arising from the repeated inferences, both in this paper and elsewhere, that the agent is somehow obligated to provide “service” long after the sale on the policies that he has sold. Certainly the insurer has an obligation to provide such service, but I cannot agree with…

Read More