Process – Page 2 – [BonkNote]

Policy Mechanics / Cash flow / Works 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 Buyers of life insurance are entitled to descriptions of their policies and how they work. But…

Commissions “compensation patterns and product design” “Special Compensation” – “incidental advice” Renumeration levelized commission program We designed commission rules that anticipated a relatively large number of rollovers of existing policies;. ..full commissions are paid provided the new Universal Life face amount is at least two times the face amount of the replaced policy. — Phillip B. Norton, not…

Policy Comparison JAMES F. REISKYTL: Bob, if I were coming to you to buy a policy, how would you tell me to compare whatever you’re selling? You said you offered policies for three or four companies. How do you compare those policies and tell me which one I should buy? Bob NELSON <NALU/NAIFA Representative>: “Inadequately”…

Complaints (p33) – Bob CORKER (R-TN) – You know, there are very few complaints. I mean, life insurance is not what drives complaints at your State Insurance Commissioner’s officer, really, is it? It is just a small percentage, is it not? 2009 0317 – GOV (Senate) – Perspectives on Modernizing Insurance Regulation, Chris Dodd (D-CT) — [BonkNote]…

Illustrations as Roadmaps This was an optional idea that we called “Illustrations As Road Maps.” The concept is that instead of letting the actual performance of a Universal Life policy diverge over time further and further from what was originally illustrated, you could send policyholders a notice each year on the anniversary, if the results are below…

Illustrations – Uses 2015 0816 – NAIC – LIAC CC, NAIC Proceedings Birny Birnbaum (Center for Economic Justice—CEJ) also expressed support for the suggestion. He said it is important that state insurance regulators determine if illustrations are accomplishing what they are intended to accomplish, how they are being used and whether consumers understand them. Mr.…

Understanding What they did not understand, they did not find useful. 1990-1A – NAIC Proceedings – NAIC LIMRA – Universal Life Disclosure Form Test Market Results – 10p We have to get out of our mode of talking about these policies in language that can only be understood by the person who wrote the language. I…