Life Insurance vs Car Insurance

  • Michael Lovendusky <ACLI>: Life Insurance Pricing is different from property / Casualty pricing
  • Birny Birnbaum (CEJ):  <Michael Lovendusky <ACLI> is off the mark... Ludicrous …. Pricing for life insurance and property Casualty pricing is not different….Collect information, run through algorithm…. Can provide an extremely detailed Illustration at application, Data Elements in policy overview are available at application….to be able to compare products from other companies

2019 0903 - NAIC Life Insurance Illustrations Working Group - (LIIIWG) <Bonk>

Most of the insurance regulatory systems surveyed in this study do not allow life and non-life insurance to be written by the same insurance company.

  • This separation of the insurance business is logical because of the fundamental differences in life insurance and property-liability insurance.
  • Since the life insurance business is based primarily upon long -term contracts and the property liability insurance business is based upon short-term contracts, the financial aspects of each are basically different.
  • Thus in those cases where both lines of insurance can be written within the same legal entity, strict separation of financial accounts is mandatory.  (p140)

1980 - JANUARY 3 - DECEMBER 16 - United States Congressional Serial Set VOL. 25: MISCELLANEOUS REPORTS - 1481p