Problem - Illustrations
The number one perceived problem is that buyers simply do not understand the nonguaranteed nature of life insurance illustrations.
- Also, it is impossible for the average buyer to judge the reasonableness of the assumptions underlying the numbers in the illustration.
-- John W. Keller - (Northwestern Mutual)
1991 - SOA - Illustrations, Society of Actuaries - 20p
In my presentation, I will be talking about the views of the regulators in the U.S. on the illustration problem.
Some of the comments that we have heard from regulators about the illustration situation suggest feelings of, if not outright despair, growing frustration.
- A couple of them spoke sadly of the futility of regulating an illustration when the real issues involve the agent or the company.
- Larry Gorski of the Illinois department mentioned that in states that do not regulate advertising or promotional materials, misleading statements can be rampant in those materials even if the illustrations are made pure.
-- Benjamin J. Bock - Transamerica Occidental
1992 - SOA - Life Insurance Sales Illustrations, Society of Actuaries - 16p