Problem - Agent

I sincerely hope that we take a look at the agent and his role in this entire process.

  • Somehow I think we need to tie in the actuarial profession with various agents' professional organizations, so that if the agent does in fact bastardize an illustration and make it completely unrealistic, he is liable too for discipline.

--  Neville S. Henderson

1991 - SOA - Illustrations, Society of Actuaries - 20p

Let's go back to the question of understandability.

  • With no standardized format being utilized, many of the illustrations currently in use are far too complex for the average consumer or applicant to understand.
  • In many cases the selling agent does not understand what he is presenting, and this needs to be addressed.

--  Robert E. Wilcox, NAIC Chairman - Illustrations Working Group

1994 - SOA - Problems and Solutions for Product Illustrations, Society of Actuaries - 28p

I would say to all of you that if you think that you don't have any customers or any agents who fail to understand what a nonguaranteed illustration really means, you're kidding yourself.

  • And if you don't think that you have customers out there (which means agents also) who believe that a vanishing premium illustration means that the policy becomes paid up in contractual terms, you're kidding yourself.
  • We are going to learn by doing as we all go through this period of more and more unfulfilled policyowner expectations.

-- Walter Miller - <Prudential>

1991 - SOA - Illustrations, Society of Actuaries - 20p

  • I think that one problem, even with the illustration disclosure, is that you are still not controlling what the agent actually says to the client, even when he or she sees that illustration. 
  •  I've been in many situations where our agent says, "I sold them a ten-pay contract and it was paid up in ten years," and I say, "It's not paid up."
  • I don't know how you can handle the idea of the agent telling somebody that it's a paid-up contract when it really was a vanishing-premium-concept contract.

--  Susan Oberman Smith

1995 - SOA - Practical Illustrations and Nonforfeiture Values, Society of Actuaries - 14p