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Start – It will take a lot of work
Start – It will take a lot of work Bart Munson (William M. Mercer Inc.) noted that life insurance disclosure issues have been the subject of ongoing debate for years and that extensive work occurred in the mid-1970s. He noted that while he is in favor of addressing the current problems associated with policy illustrations,…
Read MoreStart – Docs – Two
Start – Docs – Two Actuarial AAA 1980s – 84Q – ideas for LIBG SOA 1991-
Read MoreStart – Performance
Starters – Performance Mr. Schwartzer reminded the Working Group that the Life Insurance Illustration Issues (A) Working Group came out of concerns raised when the Indexed Universal Life (IUL) Illustrations (A) Subgroup under the Life Actuarial (A) Task Force was working on guidance for IUL policy Illustrations that would result in consumers being better able to…
Read MoreStart – Timing of Disclosure
Starters – Timing of Disclosure It had been the desire of the working group to require delivery at the time of application, but small insurance companies would have a great deal of trouble complying with that requirement due to lack of computer resources, so the extra period is allowed by way of compromise. 1989-2, NAIC…
Read MoreStart – Plan of Insurance
Start – Plan of Insurance Michael Lovendusky, ACLI … said assisting consumers to compare products is outside the scope of the Working Group’s charge, and it would limit innovation and harm consumers. Birny Birnbaum, CEJ … said the Working Group’s charge specifically includes how the summaries are “designed, formatted and accessed” by consumers, and the…
Read MoreStart – Consumer Testing
Start – Consumer Testing 1990-1A, NAIC Proceedings – NAIC / LIMRA Focus Group – Universal Life Disclosure Form Test Market Results – 10p Commissioner Ommen asked whether Mr. Birnbaum is aware of any consumer testing of illustrations or research that has already been done that looks at consumer understanding in this area. Mr. Birnbaum said…
Read MoreStart – Cash Value – Account Value – Reserve – SIV
Start – Cash Value – Account Value – Reserve – SIV SIV – Self-Insurance Value Cash Value Account Value Benefit Generating Account (BGA) Reserve Benefits Reserve SIV – Self-Insurance Value Gary Sanders (National Association of Insurance and Financial Advisors—NAIFA) agreed that use of the term “cash value” was confusing. 2017 0217, NAIC Proceedings – LIBGWG…
Read MoreStart – Policy Overview
Starters – Policy Overview Policy Overview Cover Page Policy Narrative If appropriate, the paragraph might add something like “The amount of premium you have elected to pay, $300 per year, is however insufficient to keep the policy in force to age 95 at the guaranteed minimum interest rate of 4%; the policy would terminate at…
Read MoreStart – Illustrations
Starters – Illustrations “future benefit illustrations” 1988-2, NAIC Proc ….provide illustrations based on different assumptions. This would serve to demonstrate to the consumer the effect on future benefits of changes in assumptions. — STATEMENT ON BEHALF OF <ACLI> THE AMERICAN COUNCIL OF LIFE INSURANCE TO THE NAIC MARKET CONDUCT SURVEILLANCE (EX3) TASK FORCE, June 13,…
Read MoreStart – Policy Cash Flow Mechanics
Starters – Policy Cash Flow Mechanics First thing that I want to say is that there have been some references to Misleading Illustrations. I’m certainly not aware of the Regulators have not found that Illustrations are misleading. That seems to be just an allegation that is left hanging in the air, which is inaccurate. The…
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