- "compensation patterns and product design"
- "Special Compensation" - "incidental advice"
We designed commission rules that anticipated a relatively large number of rollovers of existing policies; full commissions are paid provided:
- the new universal life face amount is at least two times the face amount of the replaced policy.
- All cash values are rolled over to the universal life policy.
- The new premium is at least equal to the current premium.
-- Phillip B. Norton, not a member of the Society, is Vice President of The Lincoln National Life Insurance Company
1983 - INDIVIDUAL LIFE INSURANCE RETENTION AND REPLACEMENT STRATEGIES, Society of Actuaries - 24p
- 1976-4, NAIC Proc. - Life Agents' Compensation Task Force
- 1981 0921 - GOV - INSURANCE AGENT COMMISSION DEREGULATION, SUBCOMMITTEE ON GENERAL OVERSIGHT OF THE COMMITTEE ON SMALL BUSINESS HOUSE OF REPRESENTATIVE
- 1990 - LR - Statutory Prohibitions on the Negotiation of Insurance Agent Commissions: Substantive Due Process Review Under State Constitutions, ROBERT H. JERRY, II AND REGINALD L. ROBINSON - 50p
- Mr. Birdsall asked if the agent compensation structure for IUL products provide greater incentives for agents than is provided by the compensation structure of traditional universal life (UL) products.
- Mr. Samuelson (MetLife) said that a compensation study he had previously conducted found that, on average, IUL policies have a target premium 80% higher than the average target premium for UL products.
2014/11/14-15, IULWG - 6-63
- From a distribution perspective, I think one of the challenges that face us in UL is the servicing of UL.
- Flexible premium, high-degree-of-service UL products have little or no renewal compensation paid if there’s no premium paid.
-- Daniel F. Byrne, M Financial
1999 - The Next Generation Universal Life, Society of Actuaries - 30p
William Albus (National Association of Life Underwriters) commented that:
- ...the requirement for disclosing sales commissions is unnecessary because it is superfluous and would only confuse consumers.
- ...the purpose of disclosure is to provide information for making an informed decision and the disclosure of sales commissions has nothing to do with making this decision.
1988-2, NAIC Proc.
- The other question I have, coming from the standpoint of a mutual company, is that with our agency system it would be hard for us to replace whole life insurance with a commission rate that is around the level of a YRT commission plus 3% of premium.
- That is about 10% of what we are now paying in the first year on a permanent insurance plan.
1979 - FUTURE TRENDS AND CURRENT DEVELOPMENTS IN INDIVIDUAL LIFE PRODUCTS, Society of Actuaries - 24p - rsa79v5n44
- Longer guarantees with corresponding higher gross premiums further increase commissions.
- There is an incentive for agents to sell longer guarantees even when they are not needed.
-- BRIAN KAVANAGH
1995 - Life Valuation Issues -- XXX/Regulation 147, Society of Actuaries