Problem
Problem – Company
Problem – Company 1949 – SOA – Some Actuarial Observations on Agency Management Problems, by Charles F. B. Richardson, Society of Actuaries – 46p 1977 – SOA – Effective Product Management, Society of Actuaries – 12p Mr. Montgomery asked how companies would control brokers who were selling insurance. 1994-3, NAIC Proceedings Mr. Wright said the Society…
Read MoreProblem – Agents
Problem – Agent I sincerely hope that we take a look at the agent and his role in this entire process. Somehow I think we need to tie in the actuarial profession with various agents’ professional organizations, so that if the agent does in fact bastardize an illustration and make it completely unrealistic, he is…
Read MoreProblem – As Long as You Pay the Premium
Problem – As Long as You Pay the Premium As long as you pay the premium Permanent (cash value) life insurance pays the beneficiary whenever the insured dies, as long as premiums have been paid. (p38) 2016 11 – FIO (Federal Insurance Office) – Report on Protection of Insurance Consumers and Access to Insurance -…
Read MoreCash Value Life Insurance – Confusing
Cash Value Life Insurance – Confusing Cash Value Gary Sanders (National Association of Insurance and Financial Advisors—NAIFA) agreed that use of the term “cash value” was confusing. 2017 0217 – NAIC – LIBG WG Conference Call (p66) – Statement James Collins (R-TX) – Much misunderstanding of cash value life insurance has been caused when people…
Read MoreProblems – Language
Problems – Language The “unbundling’ of services and other product differences between Universal Life and Ordinary Life cause current literature to be inapplicable, as well as insufficient, for Universal Life. 1984 Journal – American Academy of Actuaries I then said, “No, read the agreement. We’re not going to ask for that kind of thing.” I was…
Read MoreProblem – Policyholder Expectations
Problem – Policyholder Expectations The most obvious is if we fail policyholder expectations, we may have policyholder suits. — Larry R. Robinson, Chairman of the ACLI Subcommittee on Cost Comparisons 1988 – SOA – Actuarial Opinion on Non-Guaranteed Elements, Society of Actuaries – 12p Blumenthal v New York Life – Deposition – Pay Premium What I noticed…
Read MoreProblem – Understanding Documents
Problem – Lack of Understanding – Documents I support the task force’s efforts in this area, because I frequently have trouble understanding the illustrations of other companies’ products myself. If I as an actuary have trouble understanding them, the customer really has no idea of what he or she is actually buying or the risks…
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 MoreLiquidity – Policy Loans
Liquidity – Policy Loans Loans <ACLI> Re: Policy Loan Developments of 15 Life Insurance Companies The purpose of the meeting was to discuss concerns about the liquidity conditions and the possibilities of future adverse developments. The company people wanted to be sure that Mr. Volcker <Chairman of the Federal Reserve> was fully aware of the…
Read MoreAs long as you pay the premium
As long as you pay the premium…. Coverage Period Coverage Period – Examples Let’s review the basic mechanics of Universal Life. The policy does not lapse if a premium is not paid; rather, it lapses if the fund balance becomes too small to pay the next month’s cost of insurance. — Ben H. Mitchell, [Bonk:…
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