Fatally Flawed

  • This deficiency led one NAIC group to conclude that the system of relative cost disclosure was "fatally flawed and seriously defective."

1995 - JIR - Symposium on the regulation of life cost disclosure and market conduct - Tom Foley, Carolyn Johnson

First to comment was Sen. Howard Metzenbaum (D-Ohio):

  • He cited a report issued by the NAIC 13 years ago that reached many of the same conclusions, but the disclosure system it found to be "seriously flawed" was still in place today.

1993-3, NAIC Proceedings

INTERIM REPORT OF THE NAIC TASK FORCE ON LIFE INSURANCE DISCLOSURE SYSTEM
(December 3, 1980)
[Editor's Note-The December 3 interim LIDS report is substantially similar to the October 30 LIDS report.] (p548)

1981-1

  • At your meeting in December 1980 in New York, the Task Force presented a report stating that the interest adjusted method is "defective and fatally flawed."
  • That is the opinion of other creditable persons not a part of the committee but are educators or actuaries at companies or departments of insurance.  (p396)

-- STATEMENT TO COST DISCLOSURE COMMITTEE OF JOE A. MINTZ

1982-1, NAIC Proceedings