Archive for December 2021
2012 0910 – DOC 245 – Declaration of Dr. Patrick Brocket – 73p
2012 0910 – DOC 245 – DECLARATION OF DR. PATRICK L. BROCKETT – 73p the policy as represented (“PR”) with the policy as it actually functions (“PA”). present discounted value (“PDV”) premium expense charge (PEC), “lapse acceleration” features (p6) Assignment 6. I have been retained by counsel for Plaintiffs to analyze issues in this matter as…
Read More2014 0425 – DOC 813 – Trial Transcript – Day 12 – Walker v LSW – 224p
2014 0425 – DOC 813 – Trial Transcript – Walker v LSW – 224p (p3) – Index p41 – Jury Instructions p69 – Closing Argument by Mr. Brosnahan (Plaintiff Attorney – Walker) p126 – Closing Argument by Mr. Martens (Defendant Attorney – LSW) p189 – Rebuttal Argument by Mr. Brosnahan (Plaintiff Attorney – Walker)…
Read MoreDesign Elements
Design Elements Other design elements, I mentioned the way the cost of insurance charge increases as you get older, how that interacts in fact with the net amount at risk which several of the witnesses commented on, and it’s a very complex system. But LSW well understands the system. How many policyholders understand the system?…
Read MoreMaterial
Material It’s amazing what plaintiffs’ lawyers deem to be material for purposes of the sale. Was it material that an agent received 95% of the first year’s premium? Was it material that the agent could have sold you essentially the same policy, particularly in a universal life scenario, and received only 40%? Those are things…
Read MoreConcepts
Concepts It is these concepts or the uses of the products and not the illustrations that are the difficulties here. — 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 We are a research…
Read MoreNAIC – Illustration Model Regulation – Comments
NAIC – Illustration Model Regulation – Comments Walker v LSW – Judge – Video NAIC Proc – 1990s – end of Working Group – Good Job One of the first things that a serious reader of the NAIC Life Insurance Illustrations Model Regulation will realize is that it is not a tightly written document. — …
Read MoreMemory
Memory About this same time the baby boom generation hit the insurance industry, both in the ranks of agents and actuaries, bringing with it a lack of any memory of harder times. — William C. Koenig – [Northwestern Mutual] 1991 – SOA – Disclosure Systems: Can an Ideal Method be Found?, Society of Actuaries -…
Read MoreProblem – Interest Rate Assumption
Problem – Interest Rate Assumptions We believe current illustrated rates are much higher than what is reasonably expected over the course of the policy and may lead to consumer disappointment, which could negatively impact the entire industry. — Metropolitan Life Insurance Company, New York Life Insurance Company and Northwestern Mutual Life Insurance Company 2014 0812…
Read MoreBonk – Kinds of Policies
Bonk – Kinds of Policies Perm or Term The … company is to determine for itself which of its plans are to be treated as term insurance and which as permanent. The original instructions gave as a suggested definition of term insurance “that it is any policy with a premium rate less than 90% of…
Read MoreBonk – Illustrations
Bonk – Illustrations Blumenthal – Look Blumenthal – Defendant Expert Report Performance Results Outcomes Coverage Period Duration Assumptions Non-Guaranteed Elements Policy Mechanics / Cash Flow / Work / It is probably true that most of the information needed is already in illustrations but doesn’t get to the consumer because of their limited attention span or…
Read More