At a recent meeting of underwriters, Thomas Wheeler, a chief executive officer of Massachusetts Mutual, said in the last decade:
- "Some companies encourage churning",
- meaning rolling over whole life business into universal life.
Not only did these companies swap high-margin products for low-margin ones, they often incurred additional acquisition costs.
Do you agree with Mr. Wheeler's remarks?
-- Senator Howard Metzenbaum - Ohio
1993 0525 - GOV - When Will Policyholders Be Given The Truth About Life Insurance?
- [PDF-354p-GooglePlay, No Video]->Not on govinfo.gov
- Senate - COMMITTEE ON THE JUDICIARY - SUBCOMMITTEE ON ANTITRUST, MONOPOLIES AND BUSINESS RIGHTS
7. Consider Charges for 1997 and 1998
- 3. Make recommendations for new models or changes to existing NAIC model laws or regulations to address issues related to problems of churning.
1996-4V2, NAIC Proceedings
Churning will be high as comparisons of recent performance and illustrations will “prove” the necessity for a switching. (p6)
-- Dale R. Gustafson
...asks why the really hard questions about the product aren’t reflected in the articles we printed. His nominees for the hard questions are:
1981 11 - The Actuary, Society of Actuaries