Premiums and Benefits - Consumer Reps

􀁸 How much do the benefits build up in the policy?

􀁸 How will the timing of money paid and received affect interest?

2018 - LIBGWG - Cude Letter / Markup Life Insurance Buyer's Guide - Revised 2-9-18 for discussion on conference call 2-22-18

  • The personalized information in the Policy Overview is the premium for the policy – based on information known to the producer or insurer at the time and subject to change based on additional or revised information – and that information can be provided prior to purchase.
  • If an insurer can produce an illustration for a complex, investment type life insurance product prior to the consumer purchase, it is clearly possible for an insurer to provide the premium for a policy prior to purchase.

2019 0830 - NAIC - Birny Birnbaum, CEJ Letter - LIIIWG - Life Insurance Illustrations Issues Working Group - 12p

  • The working group did not come to a conclusion on whether to include the sensitivity analysis and decided that discussion at the next meeting would be helpful.
    • Commissioner Wilcox said he was impressed** by the comments of those on the working group who were not actuaries that sensitivity adds more confusion than enlightenment.
    • He said as an actuary, if he were buying a policy, he would want to see what 1% less interest produced.
    • He said variations other than interest would be more difficult. (p674)

1994-4, NAIC Proceedings

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

**[Bonk: I was curious about use of the word "impressed."  I looked it up on thesaurus.com and found that it is related to "affected" and "distressed"  which would make more sense in that sentence.  Thoughts?]