Performance

Explanation

Mr. Schwartzer

1. Discussed its Work Plan

Mr. Schwartzer reminded the Working Group that the Life Insurance Illustration Issues (A) Working Group came out of concerns raised when the Indexed Universal Life (IUL) Illustrations (A) Subgroup under the Life Actuarial (A) Task Force was working on guidance for IUL policy illustrations that would result in consumers being better able to understand the product performance and interest variability of IUL products. 

BN:Connect

Ad Hoc Group - 

with Wicka/ Winer 12/2018

How Do Agents use these?

2020 - AcLI Reeder

201x - IULWG - Wildcard

Start of charge

As a result, at the 2015 Fall National Meeting, the Life Insurance and Annuities (A) Committee created the Life

Illustrations Issues (A) Working Group, with the following charge:

• Explore how the narrative summary required by Section 7B of the Life Insurance Illustrations Model Regulation (#582) and the policy summary required by Section 5A(2) of the Life Insurance Disclosure Model Regulation (#580) can be enhanced to promote consumer readability and understandability of these life insurance policy summaries, including how they are designed, formatted and accessed by consumers.
• The Working Group should present a report to the Committee, with preliminary recommendations on enhancements to the narrative and policy summaries, by the 2016 Summer National Meeting

Consumer Testing

ACLI/Cude

Mr. Lovendusky said that a major item that came out of the ACLI work group was the idea of doing consumer testing to inform any revisions to the narrative summary or policy summary—an idea that Ms. Cude also seemed to support.

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ACLI

Mr. Lovendusky said the ACLI work group also discussed whether the best way to accomplish the charge is to develop one simplified disclosure document for each model or whether multiple disclosure documents for each life insurance product— whole, term and universal—are contemplated for each model. 

Consumers Confused about…

ACLI

He said the ACLI work group thinks that most confusion for consumers involves complex products like universal life, and not simple products like term life. He said consumers are mostly confused about options, guarantees and riders. 

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Narrow Charge

UL only or all.

Cude- all

ACLI

The ACLI work group was considering asking the Life Insurance and Annuities (A) Committee to narrow the charge to look at only products with options, guarantees and riders, but Ms. Cude said she thinks that it is important to consider how the disclosures for all products could be improved.

Consumer Testing

BB

Mr. Birnbaum said that consumer testing is needed to determine what information consumers want and need to make a decision. He said that whatever the Working Group recommends for life insurance policy summaries or illustrations should be driven by consumer needs and consumer-tested to ensure its effectiveness.

Consumer Testing

Mr. Schwarzer

Mr. Schwartzer also said he would like to pursue the idea of consumer testing to inform the Working Group.