Life Disclosure Working Group - NAIC

The working group's concern was how to bring about a change without damage to the market place.

1993-4, NAIC Proceedings - Life Disclosure Working Group – NAIC

  • 2000-1, NAIC Proceedings - March 14, 2000,
    • (p81) - Mr. Foley said the working group had been charged to make amendments to the Life Insurance Disclosure Model Regulation - (Attachment Three-A) to be consistent with the Life Insurance Illustrations Model Regulation adopted in 1995.
    • (p83) - Mr. Foley said that for a variable product, if the 12% illustration is used, it can show a very low premium for coverage.
      • If the policy does not attain the 12% return it will not be a permanent policy.
      • He opined that consumers are misled if the 12% is not a reasonable amount over time and consumers are in the same position as they were in the 1980s when "vanishing premiums" were touted.
    • (p83) - (Attachment Three-A) - Life Insurance Disclosure Model Regulation (#580) - Draft: March 14, 2000

LIFE INSURANCE (A) COMMITTEE June 15. 1994 - Baltimore. Maryland

  • 1. Received the report of the Life Disclosure Working Group, which circulated drafts of the Life Insurance Illustrations Model Act and the Rules Governing the Use of Illustrations that permit illustrations of guarantees only into the future as well as illustrations of past performance.
  • 2. Added the charge of considering options that would authorize non-guaranteed elements to be projected into the future to the Life Disclosure Working Group.

1994-2, NAIC Proceedings

We have to get out of our mode of talking about these policies in language that can only be understood by the person who wrote the language.

  • I find, after 30 years plus of experience in the life insurance business, that there is jargon used in illustrations that I don't understand.
  • I can have difficulty in taking an illustration and figuring out what in the world the authors are trying to illustrate and how they are doing it.

--  Robert E. Wilcox - Chairman of the Life Disclosure Working Group (NAIC)

1994 - SOA - Problems and Solutions for Product Illustrations, Society of Actuaries - 28p

The whole process started in the NAIC, as it had to If radical changes in the way we illustrate policies were going to be made, they had to start at the NAIC.

  • Furthermore, the NAIC was being pushed by Senator Howard Metzenbaum who wanted to accuse the regulatory structure of not doing its job and then to bring regulation up to the federal level.

--  Frank S. Irish (Actuarial Standards Board)

 1996 - SOA - Professional Standards Affecting Life Actuaries, Society of Actuaries - 18p