Industry Reputation

NAIC Current / Recent Working Groups

11/14-15/2014
IULWG CC, NAIC Proceedings
  Mr. Ehren (Securian) said it is in the industry’s best interests to provide additional disclosures for IUL illustrations.
11/14-15/2014 LATF 6-63   Greg Gurlick (Northwestern Mutual Life) said that if consumers are not satisfied with results of their IUL policies, it will not only impact the reputations of the companies selling the products but also the entire industry will be painted with a broad brush.

 

There is a disintermediation risk for carriers when policyholders are educated through updated illustrations when their policies go off track

2016, NAIC LIBG WG, Assurity White Paper

A third problem is of great concern to me... 

A few years ago, an awful lot of universal life policies were sold using, in effect, level premium illustrations - your policy will go for all of life or whatever - with companies using 10% or 11% interest rates, which is what the interest rate environment was then. 

The concern that I have, which may soon give much of the industry a very black eye, is that while people have received, as required by law, the annual updated policy values, they have not been shown that in all too many cases, their policy is going to end up having no cash value, perhaps when they reach 74 or 75.

--  BRUCE E. NICKERSON

1991 Illustrations, Society of Actuaries

  • So our challenge is to learn and to respond.
  • I sincerely believe it's a shared responsibility by all of us - agents, the actuarial profession, company leadership, regulators and even the consumer. 
  • Our biggest mistake would be to delay.
  • I don't believe the consumer will tolerate or forgive us, let alone the regulators, if we do nothing.

-- Robert M. Nelson (Chairman- National Association of Life Underwriters (NALU) Task Force on Illustrations) - <Currently NAIFA>

1993 - SALES ILLUSTRATIONS - WE CAN'T LIVE WITH THEM, BUT WE CAN'T LIVE WITHOUT THEM!, Society of Actuaries