Starters - Non-guaranteed Elements

2017/11/6 - LIBGWG - NAIC Conference Call

American Academy of Actuaries  -  "Because NGEs <Non-Guaranteed Elements> are likely to change, the ongoing performance of products with NGEs should be reviewed periodically after purchase to assess the impact of any NGE changes and consider actions that policyholders may wish to take (e.g., adjust premium payments or death benefits)."


Brenda Cude (University of Georgia) said:
  • the issue of NGEs <Non-Guaranteed Elements> is interesting, but not something the average consumer would understand.
  • She did not think it was information that was appropriate for a short guide for first-time purchasers.  
  • Overwhelming numbers of Life Insurance buyers do not even understand which, if any, elements of their sales illustrations are guaranteed.
  • For instance, as we demonstrated in our hearing, an Alexander Hamilton illustration did not make it clear that there was no guaranteed death benefit after 12 years.

--  Senator Howard Metzenbaum, letter to the NAIC

1993 -  GOV - When Will Policyholders Be Given The Truth About Life Insurance?  - p196

He <Richard Minck, ACLI> said the most striking change in life insurance in past years was in the non-guaranteed elements.

1994-1, NAIC Proceedings

  • The educational task is huge, and it's not just with the customers; it's with our agents also.
  • 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.

--  Walter MILLER <Prudential>

1991 - Illustrations, Society of Actuaries