Games, Gimmicks and Tricks
- Why is this flimflammery allowed to continue?
- Where are the laws to prevent companies from misleading people?
-- Senator Metzenbaum
- It is my recollection and understanding that AG 49 was created in part due to a problem with ‘gamesmanship’ in IUL illustrations.
Letter - Mike Yanacheak (IA)
2014 1113 - IULWG, NAIC
DAVID H. RAYMOND:
- From several sources I have gotten the opinion that interest rate games used to be almost invincible in the early years of Universal Life.
- Partial sophistication now has reduced their effectiveness, so that the emphasis is turning toward cost-of-insurance games.
- Almost nobody can understand those yet.
- They work wonderfully, at least for the next 10 years.
1992, LIFE INSURANCE SALES ILLUSTRATIONS, Society of Actuaries
- After the introduction of indexation, this was no longer a problem except for some "tricks"
- e.g., At one point, indexation was only semi-annual and not monthly, so people took policy loans one day
after the indexation day and repaid the loan prior to the next indexation day.
- They made a lot of money out of these transactions.
-- **Dr. Kahane, not a member of the Society, is Associate Professor and director of the insurance center at Tel Aviv University.
1982 - THE EXPERIENCE OF LIVING UNDER SUSTAINED INFLATION, Society of Actuaries - 18p