Fee for Services / Consulting
Jesse included in his comments an indication that the industry would trend towards levelized commissions and perhaps a fee for the extra service performed in the first year.
- Didn't we see that there was an opportunity for the industry to move towards an extra fee with the Universal Life product?
- Didn't we lose our chance with the trend towards high first year commissions on the Universal Life?
-- Paul Overberg
1983 - SOA - Individual Life Insurance, Society of Actuaries - 22p
She further noted that the amendments would require disclosure to consumers if fees were to be charged in addition to commissions for the sale of insurance.
The chair then called for comments.
- Jack Burbidge (IDS Life Insurance Co.), chair of the advisory committee, noted that the advisory committee had not met since May 19 and that, therefore, it would be impossible to speak for the group.
- It was his understanding, however, that the advisory committee was generally in favor of the amendments, but did worry that the amendments as proposed could conflict with some states' insurance consultants laws.
- He noted that 27 states have consultant laws which are not uniform and which could be in conflict with the amendments as proposed to the Model Unfair Trade Practices Act.
- He noted that he had suggested an amendment to the exposure draft proposal (Proceedings, 1989, vol. I, pp. 85-86) in a June 2.
1989-2, NAIC Proceedings
Fee for service still is a very new and novel approach, as most of you are aware, but it is something that is evident in the marketplace.
- I think LIMRA, in a study which they completed last year, said from 10% to 20% of all agents out there do charge fees.
-- Fred Jonske
1984 - SOA - Individual Term Portfolio Management, Society of Actuaries - 22p