April 2020 – Page 2

Policy Comparison JAMES F. REISKYTL: Bob, if I were coming to you to buy a policy, how would you tell me to compare whatever you’re selling? You said you offered policies for three or four companies. How do you compare those policies and tell me which one I should buy? Bob NELSON <NALU/NAIFA Representative>: “Inadequately”…

Complaints (p33) – Bob CORKER (R-TN) – You know, there are very few complaints. I mean, life insurance is not what drives complaints at your State Insurance Commissioner’s officer, really, is it? It is just a small percentage, is it not? 2009 0317 – GOV (Senate) – Perspectives on Modernizing Insurance Regulation, Chris Dodd (D-CT) — [BonkNote]…

Illustrations as Roadmaps This was an optional idea that we called “Illustrations As Road Maps.” The concept is that instead of letting the actual performance of a Universal Life policy diverge over time further and further from what was originally illustrated, you could send policyholders a notice each year on the anniversary, if the results are below…

Illustrations – Uses 2015 0816 – NAIC – LIAC CC, NAIC Proceedings Birny Birnbaum (Center for Economic Justice—CEJ) also expressed support for the suggestion. He said it is important that state insurance regulators determine if illustrations are accomplishing what they are intended to accomplish, how they are being used and whether consumers understand them. Mr.…

Credibility MR. BARKS: Is credibility a better word? George COLEMAN: Yes, credibility in the sense that those numbers were developed using actuarially appropriate standards. — George Coleman, Prudential, ACLI, TRG-Technical Resource Group for the NAIC (Industry Advisory Group – Illustrations) 1994 – SOA – Problems and Solutions for Product Illustrations, Society of Actuaries – 28p 2009 – SOA…

Understanding What they did not understand, they did not find useful. 1990-1A – NAIC Proceedings – NAIC LIMRA – Universal Life Disclosure Form Test Market Results – 10p We have to get out of our mode of talking about these policies in language that can only be understood by the person who wrote the language. I…

ELIC – Executive Life – California To bolster their statutory surplus and reported financial condition, the four insurers reduced policy reserves on their balance sheets through reinsurance transactions and received from their parent holding companies millions of dollars in surplus infusions and loans. Although reinsurance is a legitimate practice in the life insurance industry to…

EF Hutton Alan Richards Universal Life – First Policy – EF Hutton Total Life 1981 09 – Changing Times – Kiplinger’s Personal Finance – Hutton Complete Life Such a product could be quite competitive and popular with stock brokerage houses who are used to low comnission structures. E. F. Hutton’s Life of California subsidiary is…

Investment Generation Method New Money / Portfolio Money New Money (Investment Generation Method) vs Portfolio Method [Bonk: Investment Generation Files(37) NAIC] However, it is far less clear as to how to make a fair, nonmisleading statement, about an investment year method illustration in comparison with a portfolio average illustration. This will be one of the…

Interrogatories Lonnie Milton Graul: Don’t you think part of the response to the interrogatories might be the choice of the lesser of two evils? An honest response might be, “The rates we are currently illustrating are not supportable because we illustrate on the portfolio rate and the portfolio rate is higher than the new money…