SB - Explain


  • Mass Mutual
    • Van Mueller - 
    • China Video -
  • SOA  -
    • 1974 - Albert Easton

(NG) Elements / Policy Mechanics / Responsibility

  • NAIC
    • LIBG
    • IULWG - Guy
  • GOV
    • 197x-Cash Flow Elements
  • SOA
    • 198x - Turner - can be anything
    • walter miller - you're kidding yourselves


  • NAIC
    • LIBG
    • 2013 state of the industry
  • Actuarial
    • AAA - 198x - doesn't work for UL
    • SOA - 198x - we know what it means

Confusing - Premiums and Benefits

  • NAIC
    • 1988 - ULMR??
    • LIBG - 1982 v 1996 v now
  • Law
    • Legal Case
      • Johnston and johnston v Conseco
        • Judge - going around in circle, at first principles there has to be an agreed upon Premium
  • Agent
    • Walker v LSW
      • Agent - Minimum premium... why pay more. Gov says Guideline premium most

Birth of Universal Insurance and Variable Insurance

  • Prior to the 1980s, insurers sold primarily fixed-premium term and whole-life insurance to individual policyholders.
  • With competitive pressures significantly reducing sales of whole-life products, insurers had little choice but to innovate in the 1980s to meet demand.
  • They did so by redesigning whole-life into a hybrid product that included a traditional income protection component and a long-term investment component using market-based yields (and thus were interest rate–sensitive).
  • The first of these new complex products, universal life insurance, revolutionized the industry.
  • Its popularity was rooted in its flexibility.
  • Universal life is permanent insurance combining term insurance with a cash account earning tax-deferred interest.
  • Under most contracts, premiums and/or death benefits can fluctuate (within the contract’s bounds) with policyholder preference.
  • The policy stays in effect as long as the cash value is sufficient to cover premiums.
  • Additionally, the insurer usually guarantees the cash value will not fall below a minimum value.
  • The cash value of the policy can also be used to pay the term insurance portion of the policy.
  • Like whole-life, loans can be taken against the cash value of the policy.
  • In general, products with interest-crediting rates set by insurers are retained on the general account.
  • Thus, the reserves of most universal life policies are general
    account liabilities.
  • An insurer’s profit comes in part from the spread between its return on general account assets and its set crediting rate paid out to the policyholder.
  • Mortality and expense margins also contribute to an insurer’s bottom line.


2013State of the Life Insurance Industry - NAIC


...why has the sailing been smooth for mature products similar to universal life insurance abroad, while in China things have been so turbulent?

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