Games, Gimmicks and Tricks

-- Senator Metzenbaum

1993 0525 - GOV (Senate) - When Will Policyholders Be Given The Truth About Life Insurance? [PDF-354p-GooglePlay, No Video]

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 - NAIC - IULWG

Mr. Morgan, referring to the report of the committee' on assets and investments, spoke as follows:

Life insurance is a theme that should be approached and handled reverently and discreetly, and, I would add, with a fear of God, for it is little less than holy ground; hence, carelessness and ignorance, empiricism and charlatanry, should be excluded from its high places. (p30)

-- N.D. Morgan - (president of the North America Life insurance company)

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.

1993 - SOA - Sales Illustrations: We Can't Life With Them, But We Can't Live Without Them!, Society of Actuaries - 28p

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 - SOA - The Experience of Living Under Sustained Inflation, Society of Actuaries - 18p