PremiumsandBenefits
Nonlevel Premium and Benefit Policies
Nonlevel Premium and Benefit Policies The valuation actuary concept is a form of dynamic valuation. It’s becoming increasingly clear that the traditional formula-driven valuation standards cannot deal with the many variations and products, and the pace and development of new products. This has become more obvious to me over the last year as I’ve chaired…
Read MorePremium Calculation
Premium Calculation PVFB=PVFP Ratebook Plan of Insurance When it offers a plan of insurance for a specified premium it does so on the basis of an expected level of mortality, interest, withdrawal, expense and taxation in the future. It also recognizes that the future experience levels will vary from those expected at issue through statistical…
Read MoreBGA – Benefit Generating Account
BGA – Benefit Generating Account This creature called universal life has evolved from a combination of term insurance and a flexible premium annuity to a range of differing products with various design features. Common to any of these variations is the fact that future cash values cannot be determined completely at issue. Cash values (and…
Read MoreBGF – Benefit Generating Function
BGF – Benefit Generating Function BGA – Benefit Generating Account BGF – Benefit Generating Function Premium Calculation One thing to keep in mind is that you can take a traditional whole life policy and determine an underlying benefit generating function, because the cash values are simply there. You can fix one item and say, “We…
Read MorePremium Payment Options
Premium Payment Options The complications begin with a very simple question: What’s the premium for Universal Life? It could be almost anything. Then what’s the cash value? That depends on the premium. It is the relationship between the premium and cash value that determines the product characteristics of Universal Life. — Ben H. Mitchell, [Bonk: a…
Read MoreUnderfunded Life Insurance Policies
Underfunded Life Insurance Policies “under funded” “life insurance” Impactful Ideas to Promote Ethics Awareness Small Group Case Study Discussions Use Real (Sanitized) Cases From Your Own Company Supplement With Industry Challenges (e.g. Underfunded Universal Life Insurance Policies and What Steps Company Compliance & Ethics Professionals Can Take to Help Their Companies Address this Issue) 2019…
Read MorePremiums, Costs, Values and Benefits – Legal Cases
Premiums, Costs and Benefits – Legal Cases Mr. Pickens and Cowboy Athletics, a fund-raising arm of the university, contend that the Lincoln National Life Insurance Company understated the costs of the program, overstated its potential financial benefits and charged the university inflated premiums, among other things. 2010 0212 – WSJ – University and Pickens Sue…
Read MoreDynamic
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…
Read MorePremiums, Costs, Values and Benefits – Examples
Premiums and Benefits – Examples Table I demonstrates the potential difference in offerings by paring the premiums per $1000 for a man 25 years of age in ten different policies. 1976 – AP – Implementation of Full Disclosure of Policy Value in the Life Insurance Contract – Graph – Premium Per 1000 – Bernacchi -…
Read MorePremiums, Costs, Values and Benefits – Expert Witnesses
Premiums and Benefits – Expert Witnesses Q. Do you recall the vanishing premium litigation? A (Wilcox): Very well. Q. Would you agree that the sales practices that were used in the vanishing premium — in selling those policies was problematic? MR. HIGGINS: Objection. Vague. THE WITNESS (Wilcox): In a limited number of cases, that was true. But again, that’s…
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