Policyholder Expectations

  • Life insurance, because it is a nontangible product, is extremely susceptible to being perceived as whatever people think it to be.

 --   LARRY SILKES

 1983 - UNIVERSAL LIFE VALUATION AND NONFORFEITURE: A GENERALIZED MODEL, by SHANE A. CHALKE AND MICHAEL F. DAVLIN

Blumenthal v New York Life - Deposition - Pay Premium

3. Plaintiffs failed to prove consumer expectations

  • That failure properly doomed Plaintiffs’ claim. See, e.g., Clemens, 534 F.3d at 1026 (proof of UCL fraud claim requires proof of consumer expectations by class-wide evidence: “a few isolated examples of actual deception,” “personal experience,” “personal assumptions,” and personal “expectations” of named plaintiffs are insufficient).
  • Plaintiffs can hardly complain about the court commenting on the absence of survey evidence— Plaintiffs’ own expert testified that, without a survey, he could not opine about consumer expectations. ER791 59:18-21.

http://lswclassaction.com/docs/download/SANFRAN-%238165194-v1-2016_02_08_042_Appellees_Answering_Brief.pdf

  • The most obvious is if we fail policyholder expectations, we may have policyholder suits.

--  LARRY R. ROBINSON (Chairman of the ACLI Subcommittee on Cost Comparisons)

1988 - ACTUARIAL OPINION ON NON-GUARANTEED ELEMENTS, Society of Actuaries

 If we are going to have a group of consumers of our products who are satisfied with what they get, we have to meet their expectations.

Obviously, there are two adjustment points whereby that can be accomplished.

  1. One is that you can change the outcome to match the expectations.
  2. The other is to change the expectation to match the outcome

-- Robert E. Wilcox - Chairman of the Life Disclosure Working Group (NAIC)

1994 - PROBLEMS AND SOLUTIONS FOR PRODUCT ILLUSTRATIONS,  Society of Actuaries