Bruce E. Booker

  • Life of Virginia,
  • ACLI - member of the American Council of Life Insurance (ACLI) Task Force on Cost Disclosure
  • NAIC - member of the National Association of Insurance Commissioners (NAIC) Advisory Group on Illustrations
  • 1991-1992 - SOA - Final Report* of the Task Force for Research on Life Insurance Sales Illustrations, Society of Actuaries - 142p
    • Appendix II - Illustration Examples
    • *Opinions expressed herein are those of the Task Force for Research on Life Insurance Sales illustrations and of the Committee for Research on Social Concerns. This report does not purport to represent the views of the Society of Actuaries or of its Board of Governors.
  • 1988 - SOA - Update on Universal Life Reserves and Non-Forfeiture Values, Society of Actuaries - 36p
  • 1993 - SOA - Sales Illustrations - We Can't Life With Them, But We Can't Live Without Them!, Society of Actuaries  ---  [BonkNote]  ---  20p
  • 1995 - SOA - Practical Illustrations and Nonforfeiture Values, Society of Actuaries - 14p
  • What UL does, among other things, is to let the policyowner or maybe the agent pick the point on the line between these two promises-- pick the point that best fits the situation that the agent or the policyowner is in.
    • He can have a high premium policy with lots of dividends if experience does remain good
    • or he can pay a very low premium but have a big risk of increasing the premium if experience does not turn out so well.
    • One thing this ability does, it opens up the traditional 3-factor dividend formula, the black box, so that some of the workings are exposed.
      • That is the good side, the opening up of the black box.

--  Bruce E. Booker

1988 - SOA - Update on Universal Life Reserves and Non-Forfeiture Values, Society of Actuaries - 36p

  • One question you might have is why is there so much discussion of UL and the non-forfeiture rules now?
    • The product has been around for 10 years; what is the problem?
    • As I see it, companies, state regulators, agents, and the buying public are all concerned with the credibility of the process.
      • What is a company selling?
      • How should the states regulate what is going on?

--  Bruce E. Booker

1988 - SOA - Update on Universal Life Reserves and Non-Forfeiture Values, Society of Actuaries - 36p

  • The promise has changed:
    • ... from "I will guarantee that the premium you see will provide the benefits you see, and maybe share future good times with you"
    • ... to a promise of "I will share the good experience I expect with you now, but if it doesn't happen you will have to pay me more than you may have expected to."

--  Bruce E. Booker

1988 - SOA - Update on Universal Life Reserves and Non-Forfeiture Values, Society of Actuaries - 36p

  • 1995 - SOA - Practical Illustrations and Nonforfeiture Values, Society of Actuaries - 14p
  • Actuaries can do lots of things.
    • We can provide the field with a clear description of the policy and how it works.

--  Bruce E. Booker, Life of Virginia, a member of the American Council of Life Insurance (ACLI) Task Force on Cost Disclosure and the National Association of Insurance Commissioners (NAIC) Advisory Group on Illustrations

1993 - SOA - Sales Illustrations - We Can't Life With Them, But We Can't Live Without Them!, Society of Actuaries  ---  [BonkNote]  ---  20p

  • One problem area in a lot of policies has been interest rates.
    • A slow cumulative, very large decline in interest rates has affected everything.
  • Why are we getting so many complaints?
    • Did the policyholder expect rates to stay the same forever?
    • Did the agent or the company mislead?
    • Did the policyholder think we were promising?
      • He shouldn't have, I hope he didn't.

--  Bruce E. Booker, Life of Virginia, a member of the American Council of Life Insurance (ACLI) Task Force on Cost Disclosure and the National Association of Insurance Commissioners (NAIC) Advisory Group on Illustrations

1993 - SOA - Sales Illustrations - We Can't Life With Them, But We Can't Live Without Them!, Society of Actuaries  ---  [BonkNote]  ---  20p