Some have suggested that historical experience should replace current scale as the basis for describing how the not guaranteed elements of the policy can operate.
Substitution of historical performance for current scale would not solve many of the problems related to sales illustrations. Since it is basically the replacement of one set of numbers with another, it would still require virtually all of the protections that apply to current scale. For example, assuring that the applicant understands the not guaranteed nature of the numbers would continue to be necessary, as would the need for simplifying the presentation format of the numbers.
Enclosed with this letter are sample illustrations and illustration explanation pages prepared in conformance with our draft Model Life Insurance Illustration Regulation
1994-1, ATTACHMENT FOUR-A
Recommendations of the Technical Resource Advisors to the NAIC Life Insurance Disclosure Working Group for a Life Insurance Illustration Model Regulation
.Cover letter from George T. Coleman for the Technical Resource Advisors to the NAIC Life Insurance Disclosure Working Group