Interest
SEC – Variable Life – 12%
SEC – Variable Life – 12% 1996 – NAIC – Variable Life Illustrations Subgroup of the Life Disclosure (A) Working Group – June 2, 1996 Mr. Morse reported that under the current rules, a personalized illustration may be prepared using 0% and 12%. The 12% includes the current morality and expenses and the 0% illustration…
Read MoreInterest Rate – Walker v LSW
Interest Rate – Walker v LSW (p86) – Spooner Q Did you expect to get the approximately 9.6 interest rate shown in the current basis B values each and every year? A No, not each and every year. That was just the average over time. Q What did you expect that you would get? A…
Read MoreInterest Rate Guarantees
Interest Rate Guarantees Many insurance products offer minimum interest rate guarantees for the life of the contract. In fact, some of these guarantees are mandated by statutory nonforfeiture laws. Although guarantees of 3-5% were once considered minimus, the current low interest rate environment renders them problematic. This session will explore the product design,pricing and investment…
Read MoreInterest – Index
Interest – Index ABCDEFGHIJKLMNOPQRSTUVWXYZ# B Best Interest Standards Back to top I Illustrated Interest Projections Bulletin – NAIC Insurable Interest Interest Interest Adjusted Method Interest Rate Interest Rate Guarantees Interest Rate Risk Interest Rate – Walker v LSW Interest Sensitive Life Insurance Interest – Index Back to top L Low Interest Rate Environment Back to…
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Interest Interest – Index (p9) – The literature attached to the conservation brochure read: “At Minnesota Mutual, we believe you should get an up-to-date return on your insurance dollars – no matter how long you’ve owned your policy. With Ultimate Interest™, our unique interest crediting method, we credit current, competitive interest rates to each premium…
Read MoreInsurable Interest
Insurable Interest The notion of insurable interest dates back to the Middle Ages and it was English common law until the Life Assurance Act of 1774. In that Act the Parliament of Great Britain sought to prevent the abuse of life insurance and differentiate it from gambling or purely speculative behaviour. It specifically “prohibited the…
Read More4 Percent
4 Percent Chalke and Davlin point out that a policy that provides whole life benefits assuming 10 percent interest is not a whole life plan if the guaranteed cash value is only 4 percent. Such a plan is term insurance only for a period of years. — Thomas G. Kabele 1983 – SOA – Universal Life…
Read MoreLow Interest Rate Environment
Low Interest Rate Environment content.naic.org/cipr_topics/topic_low_interest_rates.htm 2017 10 – BIS – Insurance supervisory strategies for a low interest rate environment – 29p 2014 01 – NAIC CIPR – Newsletter naic.org/cipr_newsletter_archive/vol10.pdf Life Insurers to Benefit from Rising Interest Rates, (p16) MetLife’s strategy of shifting our product mix toward less interest-sensitive products has helped mitigate the impact of a…
Read MoreBest Interest Standards
Best Interest Standards acli.com/Public-Policy/Best-Interest-Standard content.naic.org/cipr_topics/topic_annuity_suitability_best_interest_standard.htm 2018 – SOA – Changing the Retirement Advice Conversation, Society of Actuaries – 5p 2023 0520 – Letter – Barry Flagg / Veralytic to Finseca – 2p I regret to have to resign from Finseca … again, for the following reasons. California Best Interest Rule for insurance products (i.e., CA…
Read MoreInterest Rate Risk
Interest Rate Risk – (C-3) In many jurisdictions, insurance companies have expended significant efforts to understand the sensitivity of their investment portfolios to underlying market risks, especially interest rate risk. 2001 11 – BIS / The Joint Forum – Risk Management Practices and Regulatory Capital Cross-Sectoral Comparison – 126p The mismatch between the cash flows…
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