National Association of Insurance and Financial Advisors (NAIFA), fka NALU

  • I sincerely believe we have a flawed instrument in today's sales illustrations.
  • ...we did not communicate the impact of change as well as ...we should have.
  • 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 Nelson, chairperson of the National Association of Life Underwriters (NALU) Task Force on Illustrations - <Currently NAIFA>


  • Formerly known as NALU (National Association of Life Underwriters)
  • WishList - Proschansky, H. (1955). The Origins of the National Association of Life Underwriters. Business History Review, 29(3), 238-262. doi:10.2307/3111587

1994-1, NAIC Proceedings -  NALU <NAIFA> Statement - Illustrations - 18p

  • Gary Sanders (National Association of Insurance and Financial Advisors—NAIFA) agreed that use of the term “cash value” was confusing.

2017 0217 - NAIC - LIBG WG Conference Call


  • Robert Nelson
  • Gary Sanders
  • William N. Albus, 
  • Mr. Bobo
  • I'd like to stress that agents don't pretend to know the answers.
  • It is our intent to ask for your <actuaries> help because we're currently living with problems that lack solutions.

-- Robert Nelson, chairperson of the National Association of Life Underwriters (NALU) Task Force on Illustrations


  • Mr. Nelson <NALU> stated that, in his opinion, consumers can not differentiate between illustrations that show what is possible and improvements that are probably not possible.

1994-3, NAIC Proceedings

  • Mr. Carney Smith,' of .the National Association of Life Underwriters <NALU>, called for more consumer 'information' from companies and stronger self-policing within' the insurance industry.

1973-1, NAIC Proceedings

  • Actually the demands for many of these new products come from the marketplace. (p338)

-- Thomas Gregg, National Association of Life Underwriters. (NALU)> 

1983 - GOV - Tax Treatment of Life Insurance - [PDF-

  • William Albus (National Association of Life Underwriters) commented that the requirement for disclosing sales commissions is unnecessary because it is superfluous and would only confuse consumers.
  • He stated that the purpose  of disclosure is to provide information for making an informed decision and the disclosure of sales commissions has nothing to do with making this decision.

1988-2, NAIC Proc.

  • Second, an adequate flow of long-term capital is a critical need of a free society.
  • Indeed, many of the problems this country is experiencing at the present time are reportedly due to the fact that we don't have an adequate flow of long-term capital.
  • Whole life for over 100 years has been a major factor making it possible for the insurance industry to provide that long-term capital to this country.
  • That a Government agency at this critical point in time should espouse and recommend to the American people that this time-proven vehicle for the creation of long-term capital which served those same people so well should be abandoned in favor of term insurance is hard to believe.  (p79)

-- Thomas J. Wolff - <NALU/ NAIFA> National Association of Life Underwriters


  • An agents’ association representative <Robert M. Nelson (NALU, NAIFA)> reported that his group was concerned about problems because agents are generally the first to hear the disappointments, confusion and bitterness created by the unrealized expectations of policyholders.
  • Of paramount concern to agents is the fact that illustrations may not be supportable under current actuarial standards of practice.
  • He asked the group to concentrate on the serious problems caused when illustrations of non-guaranteed elements and dividends are not supportable for even a few years into the future and tend to overstate the amount of non-guaranteed elements and dividends likely to be paid.
  • The association recommended more precise definitions and stricter rules on supportability and current experience.
  • The association also asked the NAIC to take action to sensitize policyholders to the effect of a change in interest rates, and to mandate a signed disclosure statement where the consumer acknowledges he has read the illustration and understands it.

1993-1 - NAIC Proceedings

  • The findings and conclusions <of the Moss Report>, and this is the part that created the explosion, were that there is a shortfall of information, particularly with respect to ordinary life and that consumer experience does suggest that the consumer is not able to adequately determine the suitability of the product, the quality of the product, or the cost of the  product.
  • As a consequence, consumers are sustaining losses, and this would be a definite indication of a market failure.

--  JACK E. BOBO (Executive Vice President of the National Association of Life Underwriters (NALU).

1979Cost Disclosure, Society of Actuaries

  • Term Insurance: Life insurance written for a specific time period and payable only if the policyholder dies within that time period.
  • Universal life insurance: A flexible life insurance policy allowing the policyholder to change the death benefit from time to time, and vary the amount or time of a premium payment.
  • Variable life insurance: Life insurance under which the benefits vary, but never below a guaranteed minimum benefit, based on the value of assets behind the contract at the time the benefit is paid.
  • Variable Universal Life Insurance: A type of life insurance policy that combines the premium flexibility features of universal life insurance with the policyowner--directed investment aspects of variable life insurance.
  • Whole Life: Life insurance coverage that remains in force during the insured's entire lifetime, provided premiums are paid as specified in the policy.