Premiums and Benefits

2018 0319  - (LIBGWG) Life Insurance Buyer's Guide Working Group -Conference Call NAIC Proceedings

  • The Working Group discussed some language that was hard to understand referring to premiums and benefits. 
  • The Working Group agreed to include "premiums or values vary from year."
  • The Working Group agreed that language comparing different types of policies should be included in the next draft.
  • Chairman Reed: That is, in your notion, too, about simplifying, et cetera, the Consumer Financial Protection Bureau, and Professor Schwarcz mentioned this, has now modeled mortgage sort of language. I presume that you are working toward, your comments, sort of model language for disclosures, for transparency. Is that——
  • .....
  • Ms. VAUGHAN. And that is—this working group is discussing how to do that. I have to say, my suspicion is it is going to be a little harder in insurance given the variety of the products. It is a little more complex than it is in the mortgage area.
  • Chairman REED. Right. But I think for that reason also it might be even more necessary so that your efforts are appreciated and should be expedited.  (p19-20)

2011 0914 - GOV -  Emerging Issues in Insurance, Senate - Committee on Banking, Housing, and Urban Affairs - Subcommittee on Securities Insurance, and Investment Regulation 

Section 8. Disclosure Requirements

Commissioner Hager of the Universal & Other Plans (A) Task Force stated that there appeared to be disclosure problems with universal life plans and that the identification of these items should be placed on the Actuarial Task Force agenda.

  • The main concern was that an unsophisticated buyer purchased a policy and did not know what the coverages, benefits and limitations were. 

Some of the items identified which should be disclosed:

  • (2) adequate disclosure of the fact that a premium quoted will not support the contract for the whole life if the policy is a Universal Life policy; 

1988 Proc. II 566

Universal Life Model Regulation - Citations (ULMR) (MDL-585)

  • ACLI
    • 2013 0423 - Legal Case - Johnston and Johnston v Conseco 13-30010_Documents ACLI AMICUS BRIEF - 48p
    • 2015 0930 - ACLI to NAIC Letter -
      • Life insurance policy illustrations contain important and useful information to consumers so they can make informed decisions about the policy they are considering. The NAIC Life Insurance Illustrations Model Regulation was designed to make sure illustrations represent an accurate depiction of the policy and its benefits, foster consumer education and make illustrations more understandable.