- Prior to· the end of the nineteenth century it had been necessary for all companies to use the method of valuation of policies then provided by law on what was known as the net level premium plan.
- Under this plan it was extremely difficult to organize and develop new companies and there has been very few new life insurance companies organized prior thereto.
- Beginning with the twentieth century a number of the Western states provided by law for the valuation of policies of companies upon what was known as the preliminary term or modified preliminary term basis, and it was these laws that permitted the organization and rapid growth of many companies throughout the Western and Southern states, as shown by the growth of companies on the schedules attached hereto, marked Exhibit "A". (p168)
1940-0, NAIC Proceedings
- In 1907, following the Armstrong investigation and as a result of the panic of that year, the N.A.I.C. adopted a resolution to set the stage to obtain uniformity in valuing securities. Up to 1909, New York and Massachusetts, at their own expense, had prepared valuation lists which were used by other states. In that year, the Valuations Cormnittee of the N.A.I.C. hired its own expert to prepare its list. He was the first salaried staff employee of the N.A.I.C. Later the work vas done by professional organizations for a fee; concerns like Moodys and Poor's were employed, with various state insurance departments contributing to the payment of this expense.
- Several times over the years, the N.A.I.C., through its Valuations Committee, has taken steps to adjust values in times of national economic stress or emergency.
- As stated above, this was done during the panic of 1907. It was undertaken again during the market demoralization of 1914 and again in 1917. As a result of the stock market crash of 1929, the N.A.I.C. adopted so-called convention values in 1931. "Thus, upon at least four different occasions, the N.A.I.C., by realistic and timely action, became a potent factor in protecting the public against insolvency. (p11-12)
1958 - Insurance Regulation in the Public Interest "A BETTER N.A.I.C." - Robert E. Dineen - 122p