What they did not understand, they did not find useful.

1990-1A - NAIC Proceedings - NAIC LIMRA - Universal Life Disclosure Form Test Market Results - 10p

During the course of....we ascertained that there were very few people within the Federal Government with an understanding of the insurance industry.  

A staff memo...stated: "It appears that for many years the workings of the life insurance business have been misunderstood by those at the [Internal Revenue Service and Justice Department] associated with the question.

-- Chairman LaFalce

1979 - GOV -Small Business Problems with Insurance

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

MR. BAKOS: I think there's another factor here that you have to consider, and I'd be interested in heating Commissioner Wilcox's view on this, and that is just the basic gullibility of people.

Yesterday we heard there are apparently some fairly sophisticated investors who invested $2 million expecting to double it in six months.

The basic premise with respect to life insurance is that there are values that are not guaranteed. 

It should be a very simple concept to get across and yet we've been unsuccessful.

If you have people out there who believe they can double their money in six months, how will you ever convince everyone that dividends are not guaranteed.

1994 - SOA - Problems and Solutions for Product Illustrations