LIBGWG - Life Insurance Buyer's Guide Working Group - NAIC

2015

  • 2015 Spring - NAIC LIAC (Life Insurance A Committee) - Appointed a New Working Group to Revise the Life Insurance Buyer’s Guide
    • Ms. Matthews said the Committee has a 2015 charge to review and consider revisions to the Life Insurance Buyer’s Guide (Buyer’s Guide) in conjunction with the Life Insurance Disclosure Model Regulation (#580). 
  • 2015 1120 - (LIAC) - Life Insurance and Annuities (A) Committee National Harbor, Maryland - (6-3)
    • the Committee set a 30-day public comment period to receive comments from stakeholders on their issues and concerns with life insurance illustrations and the Life Insurance Illustrations Model Regulation (#582). In response, she said the Committee received comments from:
    • 2015 0930 - American Academy of Actuaries (Academy) - 3p
    • American Council of Life Insurers (ACLI) - 2p
    • California Department of Insurance - 1p
    • Massachusetts Mutual Life Insurance Company (MassMutual) - 1p
    • NAIC consumer representatives - 1p
    • <State Farm> - 1p
  • BonkNote - Binder 4 - LIBG - (pages)
  • NAIC LIBGWG Drafts
    • (p9-12) - 2017 0215 - Cude - Outline for Life Insurance Buyers’ Guide - 2/15/2017 Draft - 4p
      • 2 1 cmte_a_libg_wg_brenda_cude_outline_for_life_insurance_buyers_170227
    • 5 3 cmte_a_libg_wg_170710_chair_discussion_draft_short_guide
    • 6 2 cmte_a_libg_wg_170731_discussion_draft_guide
    • 6 6 cmte_a_libg_wg_170731_ri_discussion_draft_guide
    • 10 2 cmte_a_libg_wg_180205_buyers_guide_clean
    • 11 1 cmte_a_libg_wg_180222_rev_draft
    • 15 6 cmte_a_libg_wg_exposure_180319_draft_buyers_guide
    • cmte_a_libg_wg_exposure_180409_draft_buyers_guide
    • 17 3 cmte_a_180719_libg_draft

2016

  • 2016 1129 - LIGBWG - organizing conference call
    • Nov. 29, Minutes (Attachment Eight) - 6-21

2017

  • 2017 0207 - (p27-28) - LIBGWG - Conference Call
    • Feb. 7, Minutes (Attachment Seven) - 6-22 - 2p
  • 2017 0227 - LIBGWG  - Conference Call
    • [  ] - Agenda
    • (p29-30) - Feb. 27, Minutes (Attachment Six) - 6-20 - 2p
      • (p9-12) - 2017 0215 - Cude - Outline for Life Insurance Buyers’ Guide - 2/15/2017 Draft - 4p
        • 2 1 cmte_a_libg_wg_brenda_cude_outline_for_life_insurance_buyers_170227
      • (p13-14) - 2017 0217 - CEJ/Birnbaum - 2p
        • 2 2 cmte_a_libg_wg_cej_comments_naiclifebuyersguidewg_170227
      • (p15-16) - 2017 0217 - Brian Fechtel - 2p
        • 2 3 cmte_a_libg_wg_170227_comment_fetchel
  • 2017 0313 - LIBGWG - Conference Call
    • (p19) - 2017 0313 - Conference Call - Agenda / Roll Call - LIBG - 1p
    • [  ] - March 13, Minutes (Attachment Five) - 6-18
    • (p20-22) - 2017 0306 - Sub-group’s attempt to merge suggestions - 2p
      • 3 2 cmte_a_libg_wg_170313_sg_outline
  • 2017 0327 - LIBGWG - Conference Call
    • (p26) - 2017 0327 - Conference Call - Agenda / Roll Call - LIBG - 1p
    • [  ] - March 27, Minutes (Attachment Four) - 6-16 
    • (p23-25) - 2017 0313 - CEJ/Birnbaum - 3p
      • 3 3 cmte_a_libg_wg_170313_cej_cmts
    • (p33-35) - 2017 0321 - ACLI - Michael / Emily - 3p
      • 4 3 cmte_a_libg_wg_170327_comment_letter
    • (p36-39) - 2017 0324 - Cude - RE: Structure of the Life Insurance Buyer’s Guide, Sub-group’s attempt to merge suggestions March 6, 2017 - 3p
      • 4 4 cmte_a_libg_wg_170327_cude_comments
    • (p40-42) - 2017 0327 - CEJ/Birnbaum- Life Buyer’s Guide Outline: CEJ/Birnbaum expanded version 170324 for 3-27-17 conference call - 3p
      • 4 5 cmte_a_libg_wg_170327_cej_expanded_outline
  • 2017 0710 - LIBGWG - Conference Call
    • (p43) - 2017 0710 - Conference Call - Agenda / Roll Call - 1p
    • [   ] - July 10, Minutes (Attachment Five) - 6-21
    • (p47-51) - 2017 0706 - NAIC Life Insurance Buyer’s Guide (Draft) - 5p
      • 5 3 cmte_a_libg_wg_170710_chair_discussion_draft_short_guide
    • (p58-63) - 2017 0719 - ACLI Suggested Edits 7/19/17 to NAIC Discussion Draft 7/6/17 - 5p
      • 6 3 cmte_a_libg_wg_170731_acli_draft
      • Together - (p63 - ) - 2017 0719 - ACLI Letter -  RE: NAIC Discussion Draft Buyer’s Guide Revision 7/6/17 - 1p
        • 6 4 cmte_a_libg_wg_170731_acli_letter
    • (p64-69) - 2017 0719 - Consumer Reps (Cude, CEJ, Kitt) - Buyer’s Guide and to NAIC Discussion Draft 7/6/17-  6p
      • 6 5 cmte_a_libg_wg_170731_guide - Cude
    • (p70-75) - 2017 0719-? - Rhode Island - NAIC Life Insurance Buyer’s Guide (Marked up) - 6p
      • 6 6 cmte_a_libg_wg_170731_ri_discussion_draft_guide
      • Title -  A more appropriate title to this would be “ A Shoppers Guide to Life Insurance” – Matt Gendron
      • 5. -  Aren’t we assuming consumers are buying insurance for the first time? – Sarah Neil
  • 2017 0731 - LIBGWG - Conference Call
    • (p52-57) - 2017 0731 - Conference Call - Agenda / Roll Call - 1p
    • [  ] – July 31, Minutes (Attachment Four) - 6-19
    • (p76- ) - INSUREU Webpages -
      • (p82) - 10 Things You Should Know Before Purchasing Life Insurance
        • 7 1 cmte_a_libg_wg_171106_life_web_materials
        • 10 Things You Should Know Before Purchasing Life Insurance - WG Example - 1p
    • (p99-103) - 2017 0818 - 08-18-2017 Draft Life Insurance Buyer’s Guide - 5p
      • 7 5 cmte_a_libg_wg_171106_life_ins_buyers_guide_qa
    • (p124-129) - 2017 1120-?? - Cude to NAIC LIBG - re: 08-18-2017 Draft Life Insurance Buyer’s Guide - 6p
      • cmte_a_libg_wg_171120_karrol_kitt_brenda_cude_buyers_guide_comments
      • Comment [BJC2]:
        • Permanent insurance is a term used only by the industry – not by consumer educators.
        • We would prefer – Life insurance comes in two basic types: Term and whole life (also referred to as permanent insurance)
        • Comment [BJC3]:
          • Delete? Does a term policy EVER have a cash value?
    • (p96) - 2017 0926 - ACLI -1p
      • 7 3 cmte_a_libg_wg_171106_acli_comments
    • (p97-98) - 2017 1019 - AAA (American Academy of Actuaries) - Re: Life Insurance Buyer’s Guide Short Guide Discussion Draft from the July 31, 2017, Conference Call (“Discussion Draft”) - non-guaranteed elements (NGEs) - 2p
  • 2017 1106 - LIBGWG - Conference Call
    • (p95) - 2017 1106 - Conference Call - Agenda / Roll Call - 1p
    • [  ] - Nov. 6, 2017, Minutes (Attachment Four) - 6-25
    • (p104-105) - 2017 1106 - LISA - 2p
      • 7 6 cmte_a_libg_wg_171106_lisa_comments_on_naic_buyers_guide_qa
    • (p106-107) - 2017 1114 - NAIFA, Gary Sanders - Re: Life Insurance Buyer’s Guide Q&A Draft 8/1/17 - 2p
      • 8 4 cmte_a_libg_wg_171120_naifa_letter
    • (p108-109) - 2017 1114 - LISA - 2p
      • 8 5 cmte_a_libg_wg_171120_lisa_comments
    • (p110-111) - 2017 1115 - AAA (American Academy of Actuaries) - Re: Life Insurance Buyer’s Guide Q&A Draft 8/1/17 - 2p
      • 8 6 cmte_a_libg_wg_171120_academy_comment_letter
      • Universal life also allows for flexibility in policy benefits, not just premium payments.
    • (p112-123) - 2017 1115 - ACLI - Emily - NAIC Life Insurance Buyer’s Guide – DRAFT 08012017 – ACLI Revisions 11/15/17 - 12p
      • 8 7 cmte_a_libg_wg_171120_acli_letter
      • Further, ACLI would also like to object to the recommendations set forth by the American Academy of Actuaries letter, dated October 19th, in which the Academy recommends discussion of non-guaranteed elements (NGEs) to be included in the Buyer’s Guide.
      • ...objects on the grounds that inclusion of these proposals is inappropriate for a Buyer’s Guide, and would only cause more confusion for consumers.
  • 2017 1120 - LIBGWG - Conference Call
    • (p130) - 2017 1120 - Conference Call - Agenda / Roll Call - 1p
    • [  ] - Nov. 20, 2017, Minutes (Attachment Three) - 6-23
    • (p156-157) - 2017 12 - 10 Things You Life Insurance Buyer’s Guide What you Should Know Do Before Purchasing Life Insurance - Comments are requested by emailed to [email protected] by December 15, 2017 - 2p
    • 2017 1215-?  - Rhode Island Comments - 2p
      • 9 1 cmte_a_libg_wg_180129_10_things_rhode_island_comment
      • Title: A more appropriate title to this would be “A Shoppers Guide to Life Insurance” – Matt Gendron
      • 5. Aren’t we assuming consumers are buying insurance for the first time? – Sarah Neil
    • (p133-134) - 2017 1215 - Consumer Reps - Cude, Kitt - Comments on Draft - Things You Should Know Before Purchasing Life Insurance - 2p
      • 9 2 cmte_a_libg_wg_180129_10_things_brenda_cude_karroll_kitt_comments 
      • Is #6 referring to an illustration? Again, unless we use the terminology, consumers won't be able to connect this to what they're seeing in the market.
      • 6. We don't understand the sentence in #9 that reads "What is the effect of interest on money paid and received at different times on the policy?" Wouldn't this be in the illustration?
      • This document does not answer the following questions (even indirectly) which we think are important. - 1. How much does life insurance cost?
    • (p135-136) - 2017 1214 - AAA (American Academy of Actuaries) - Re: Comments on the “10 Things You Should Know Before Purchasing Life Insurance” Exposure Draft - 2p
      • 9 3 cmte_a_libg_wg_180129_10_things_academy_comments
    • (p137) - 2017 1215 - ACLI - re: 10 Things to Know Before Buying Life Insurance - 1p
      • 9 4 cmte_a_libg_wg_180129_10_things_acli_comments
    • (p138-139) - 2017 1227 - ACLI - Emily - 2p
      • 9 5 cmte_a_libg_wg_180129_acli_comments

2018

  • 2018 0129 - LIBG - Conference Call
    • (p144) - 2018 0129 - Conference Call - Agenda / Roll Call - 1p
    • [  ] - Jan. 29, Minutes (Attachment Ten) - 6-107
  • 2018 0205 - LIBG - Conference Call
    • [  ] - Feb. 5, Minutes (Attachment Nine) - 6-103
  • 2018 0226 - LIBG - Conference Call
    • Feb. 26, Minutes (Attachment Eight) - 6-100
  • 2018 0312 - LIBG - Conference Call
    • Feb. 26, Minutes (Attachment Eight) - 6-100
  • (p140) - 2018 0103 - AAA (American Academy of Actuaries) - Re: Comments on for the “CEJ Expanded Outline” Exposure Draft - NAIC LIBG - 1p
    • 9 6 cmte_a_libg_wg_180129_cej_academy_comments
    • ...we would encourage you to go ahead and include specific mention of NGEs.
      • The following are just a few of the concepts related to NGEs that consumers often do not understand:
      • What are NGEs?
        • What are the advantage and disadvantages of NGEs?
        • What types of products usually have NGEs?
        • Are there limits to when and how much the NGEs can change?
        • How do I monitor changes to my policy’s NGEs?
  • (p141-143) - 2018 0103 - LISA - RE: LISA Comments on CEJ/Birnbaum - Expanded Outline – Life Insurance Buyer’s Guide Working Group - 3p
    • 9 7 cmte_a_libg_wg_180129_cej_lisa_comments
  • (p153-155) - 2018 0131 - From Karrol Kitt and Brenda Cude 1/31/2018 - Suggested Wording from 9 Additional Items in Life Insurance Buyer’s Guide -Suggested Wording from Additional Items in Life Insurance Buyer’s Guide (Attachment Nine-A) - 6-105 - 3p
    • 10 5 cmte_a_libg_wg_180205_suggested_wording_9_additional_items - Cude Kitt
  • (p149) - 2018 02?? - Teresa Winer’s comments on Kitt’s and Cude’s document: “Suggested wording from 9 Additional…” - 1p
    • 10 3 cmte_a_libg_wg_180205_ga_comments - Winer
  • (p158-160) - 2018 0131? - Revised 1-31-18 for discussion on conference call Monday, Feb 5, 2018 - Marked Up - 4p
    • 10 2 cmte_a_libg_wg_180205_buyers_guide_clean - 2p
  • (p145-146) - 2018 0215 - Revised 1-31-18 for discussion on conference call Monday, Feb 5, 2018 - Life Insurance Buyer’s Guide - 2p
    (p147-148) - 2018 0215 - Revised 1-31-18 for discussion on conference call Monday, Feb 5, 2018 - Life Insurance Buyer’s Guide - 2p
    (p151-152) - 2018 0215 - Revised 1-31-18 for discussion on conference call Monday, Feb 5, 2018 - Life Insurance Buyer’s Guide - 2p
  • (p160-163) - 2018 0209 - Revised 2-9-18 for discussion on conference call 2-22-18 - LIFE INSURANCE BUYER’S GUIDE - 4p
    • 11 1 cmte_a_libg_wg_180222_rev_draft
  • (p170-172) - 2018 0218 - Revised 2-9-18 for discussion on conference call 2-22-18
    • 12 1 cmte_a_libg_wg_180226_guide
  • (p164-169) - 2018 0218 - AAA (American Academy of Actuaries) - Re: Comments on the “Revised Draft 2-9-18” exposure draft for the Life Insurance Buyers Guide
    • 11 2 cmte_a_libg_wg_180222_acad_comments
    • We are including a marked up version of the 2-9-18 Draft
    • Section #6 (#7 in the Academy Draft): We suggest including explicit reference to an “illustration” since the term is used in the life insurance application process.
    • Section #9 (#10 in the Academy Draft): We restructured the section to improve readability and added language to discuss the need to keep track of policy changes, and to identify annual statements and inforce illustrations as tools that can help with the review. 
  • (p175-177) - 2018 0209 - Cude/Kitt Comments - Revised 2-9-18 for discussion on conference call 2-22-18 - 3p
  • (p173-174) - 2018 0226 - CEJ/Birnbaum - 2p
    • 12 2 cmte_a_libg_wg_180226_bb_comment 
    • Given that majority of life insurance products are investment-type products of which the death benefit is one, sometimes small feature, this advice seems inadequate to prepare a consumer for the plethora of insurance products.
    • In paragraph 5, the advice is to be sure you can afford the premiums.
      • This seems like a logical spot to indicate that most term life insurance has a level premium for up to 20 years and a caution to consumers about complex insurance products that promise to pay the premium through investment earning or the recent problems with universal life policies.
  • (p190-19) - ACLI - 2018 - ACLI - ACLI Comments conference call 2-26-18 / 02-22-18 Markup - 4p
    • 13 2 cmte_a_libg_wg_180312_acli_comments_on_180209_draft
    • Comment [EM2]: ACLI expressed the need for simple, direct definitions of the general cash value life insurance types: Whole Life, Universal Life & Variable Life.
  • (p194-196) - 2018 0209 - Cude/Kitt Comments - Revised 2-9-18 for discussion on conference call 2-22-18 - 3p
    • 13 3 cmte_a_libg_wg_180312_bc_kk_comments_on_180209_draft
    • do not…don’t build up cash value
    • Deleted: How quickly does the cash value
    • Do premiums or [benefits] vary from year to year? - Cude: To what does this [benefits] <refer>…
    • How much do the benefits build up in the policy? - Cude: Comment [BJC4]: What benefits?
    • How will the timing of money paid and received affect interest? - Cude:  Comment [BJC5]: What interest? Not mentioned anywhere else.
  • (p197-202) - 2018 0302 - Kim O'Brien (AAP) - Subject: AAP Comments on Life Insurance Buyers Guide
    • 13 5 cmte_a_libg_wg_180312_aap_comments
  • (p203-205) - 2018 0329 - DRAFT 3-19-18 (based on 3-12-18 and 3-19-18 conference calls) - Rhode Island, Sarah Neil (NS)
    • 15 1 cmte_a_libg_wg_180319_ri_comments
    • Comment [NS(2]: Another key difference is UL is interest rate sensitive. Suggest adding that as it is an important distinction. 
  • (p206) - 2018 0329 - Brenda Cude and Karrol Kitt edits - DRAFT 3-19-18 (based on 3-12-18 and 3-19-18 conference calls)
    • 15 2 cmte_a_libg_wg_180319_bc_kk_buyers_guide_cmts
    • insureuonline.org or by calling (816) 842-3600. - Cude: Comment [BC3]: What happens if I call?
    • Cude: Comment [BC7]: Is there a better term than non-variable? Apparently that’s the term used by IIPRC.
    • How will the timing of money paid and received affect any interest the policy might earn?  - Cude: Comment [BC10]: No one will understand …
  • (p209-210) - 2018 0418 - AAA (American Academy of Actuaries) - Re: Comments on the “3-19-18 Draft Buyer’s Guide” exposure draft for the Life Insurance Buyers Guide - 2p
    • 15 3 cmte_a_libg_wg_180319_academy_cmts
    • Section #4: We recommend clarifying, in the “Variable policies vs Non-Variable policies” paragraph, that “risk of loss” means risk of lower cash value or the need to pay additional premiums to keep the coverage inforce.
    • Section #10: We believe adding a question that prompts a review of nonguaranteed elements would be beneficial for the consumer, such as “Have the premiums or benefits changed since my policy was issued?”
  • (p211-215) - 2018 0418 - ACLI - … latest revised and updated Life Insurance Buyer’s Guide (March 19, 2018), in the question and answer format. The ACLI redlined draft, Emily - 5p
    • 15 4 cmte_a_libg_wg_180319_acli_cover_and_comments
    • Variable vs. Non-variable Policies. If you have a variable policy, you select how your cash value is invested (the insurance company typically allows you to choose from a number of investment funds) and your cash value is directly impacted by the investments you choose. These policies have the greatest potential to build cash value but also have the greatest risk of loss. For non-variable universal life policies, the insurance company credits interest subject to a minimum guarantee. These policies may earn fixed interest (which is based on a declared interest rate) and/or indexed interest (which is based, at least in part, on changes in one or more market indices). For non-variable whole life policies, the insurance company guarantees a minimum cash value and may pay dividends that could increase your actual cash value.
  • Be Sure You Can Afford the Premium Payments

Before purchasing a life insurance policy, be sure that you are able to afford the initial premium  payment and planned premiums in the future. If the premium will increase later, make sure that you will be able to afford them in subsequent years

.

8. Have an Insurance Agent, the Insurance Company or Financial Planner Help You Evaluate the Future of Your Policy

If your policy is one that is illustrated, ask your insurance agent, financial planner or insurance company for an illustration showing what may happen in the future to your values and benefits.

Deleted: the premium payments required

Deleted: will you still be able to afford it?

Deleted: Does your policy have a cash

 

Do premiums and policy values vary from year to year?

• What part of the premiums and policy values is not guaranteed?

• How will the timing of money paid and received affect premiums and policy values?  ACLI: Deleted: interest

 
    • (p216-219) - 2018 0329 - DRAFT 3-19-18 (based on 3-12-18 and 3-19-18 conference calls) - 3p
      • 15 6 cmte_a_libg_wg_exposure_180319_draft_buyers_guide
  • 2018 0409 - LIBG - Conference Call
    • [  ] - Agenda
    • (p219) - 2018 049 - Conference Call - Minutes - LIBG - 1p
      • 17 1 cmte_a_180719_life_insurance_buyer_guide_conf_call_mins
    • (p220) - 2018 0409 - Conference Call - Summary Report - LIBG - 1p
      • 17 2 cmte_a_180719_summary_report
    • (p221-223) - 2018 0517 - Edited for Readability 5-17-18 - Draft 4-9-18 Finalized by Life Insurance Buyer’s Guide (A) Working Group - 3p
      • 17 3 cmte_a_180719_libg_draft - Edited for Readability
    • (p224-229) - Deleted Appendix A - Model Regulation Service—October 2005 - 2/27/17 - Underscores and overstrikes show changes from the existing Model. © 2005 National Association of Insurance Commissioners 580-1 - LIFE INSURANCE DISCLOSURE MODEL REGULATION - 6p
      • 17 4 cmte_a_180719_revised_580
    • (p230-231) - 2018 0621 - Draft 6-21-18 - PROJECT HISTORY - LIFE INSURANCE DISCLOSURE MODEL REGULATION (#580) - REVISED LIFE INSURANCE BUYER’S GUIDE - 2p
      • 17 5 cmte_a_180719_580_proj_history
    • (p232-235) - 2018 0325 - Draft Pending Adoption - Life Insurance and Annuities (A) Committee - 4p
      • 17 6 cmte_a_180719_sp_nm_min
  • 2018 0719 - LIBG - Conference Call
    • (p236) - 2018 0719 - Life Insurance (A) Committee - Roll Call - 1p
    • [  ] - Minutes
    • (p239-247) - 2018 0719 - Adopted by Life Insurance and Annuities (A) Committee 7/19/18 - LIFE INSURANCE DISCLOSURE MODEL REGULATION - 9p
      • ?
    • 18 2 index_committees_final_action_580 - MarkUp - Life Insurance Disclosure Model Regulation - Removed Life Insurance Buyer's Guide
    • (p248-249) - 2018 0719 - Adopted by Life Insurance and Annuities (A) Committee 7/19/18 - LIFE INSURANCE BUYER’S GUIDE - 2p
      • 18 3 index_committees_final_action_libg
  • 2017 -
    1. 2017 0207 (Attachment Seven)
    2. 2017 0227(Attachment Six)
    3. 2017 0313 (Attachment Five)
    4. 2017 0327 (Attachment Four)
    5. 2017 0710
    6. 2017 0731
    7. 2017 1106
    8. 2017 1120
  • 2018 -
    1. 2018 0129
    2. 2018 0312
    3. 2018 0319
    4. 2018 0409
    5. 2018 0719

(2016-2018)

  • 2017 1019 - AAA to NAIC LIBG - Work Group Comments on Life Insurance Buyer’s Guide Discussion Draft - 2p
    • Non-Guaranteed Elements Work Group comment letter on the NAIC’s Life Insurance Buyer’s Guide (A) Working Group discussion draft.