Policy Mechanics – Cash Flow – Page 2

M&E Charge Now how could the staff be sure that this M&E charge was not a secret sales load? — W. Randolph Thompson, with the law firm of Jones & Blouchin Washington, will speak on some SEC issues 1993 – SOA – Variable Products — Product for the 1990s?, Society of Actuaries – 22p

Loads 1984 – SOA – Rear End Loaded Funds, Society of Actuaries – 22p

Dynamic Products NGEs Policyholder Behavior George Coleman said he hoped this is a dynamic document. — George Coleman, Prudential, ACLI, TRG-Technical Resource Group for the NAIC (Industry Advisory Group – Illustrations) 1994-, NAIC Proceedings This paper develops a model which can be used to help life insurance consumers decide how much insurance to purchase. The original…

Separate Accounts 1985 0717 – Federal Register – Vol. 50, No. 137 p28930-28931 – SEC – Investment companies: Separate accounts funding flexible premium variable life insurance contracts – 2p 2000 – SOA – Separate Account Products in the U.S. and Canada: Comparing Their Design, Regulation, and Taxation, Society of Actuaries – 28p 2. A separate account is…

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…

General Accounts 1983 – SOA – Segmentation of Insurance Company General Accounts, Society of Actuaries – 38p New Money / Portfolio Money Investment Generation Method 5. A general account is a design feature that is generally available to purchasers of whole or universal life insurance whereby the general assets of the insurance company support the…

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…

Value Cash Surrender Values Cash Value Cash Value Life Insurance Surrender Values Valuation Manual – NAIC Value at Risk – (VAR) Chapter 9 Elizur Wright “Value” – extended term (p153) – he = Patrick Brockett, Plaintiff Expert Witness And he identified the fact that sometimes when the market performs lower, the policy has less value.…

Works Policy Mechanics / Cash flow Starters – Policy Cash Flow Mechanics Until the buyer understands how the product works, attempts to compare price are essentially meaningless. 1972 – SOA – Life Insurance and the Buyer by Anna Rappaport, Society of Actuaries – 2p-Article The fact that we charge people fees that we have disclosed…

Net Amount at Risk (NAAR) ALSO KNOWN AS: Sum at Risk Company Insurance Value – CIV – (Elizur Wright) Term Insurance