David Lange

  • This paper considers alternative interpretations of Duration as a length of time, average life of cash flows and interest rate sensitivity as applied to UL policy cash values.
    • The interest rate sensitivity of UL policy cash values, amplified by the corresponding cost of insurance sensitivity with declining interest income, suggests UL has always been a simple question of Duration.

2010 - AP - Universal Life Insurance Duration Measures, by David Lange, Peter Alonzi and Betty J. Simkins - 14p

  • Underwood v. Life Ins. Co. of Georgia
    • No. CV 97-N-860-W, United States District Court, N.D. Alabama, Western Division, 14 F. Supp. 2d 1266 (N.D. Ala. 1998), Decided Jun 30, 1998
  • 2005 - LC - Ketchum, et al v. Conseco Life Ins Co
    • Case 2:03-cv-02793-UWC Document 52 Filed 08/10/05 Page 1 of 15 - 
    • Pacer - 
  • 2010 - LC - Maloof v. John Hancock Life Ins. Co. -  60 So. 3d 263 - Alabama Supreme Court Opinion  ---  [BonkNote]  ---  39p  
  • Excel - “Teaching Life Insurance By Design - Applied Life Insurance Illustrator,” David Lange, University of Auburn Steve Jones, Samford University Betty Simkins, Oklahoma State University
  • 2002 - AP - The Retrospective Life Insurance Method - David Lange and Betty Simkins - BonkNote - 27p
  • 2003 07 - Journal of Financial Planning - In-Force Policy Illustrations: A Financial Planning Tool, by David R. Lange Ph.D.; Ken G. Himes, Ph.D., CLU, RFC; and Steven T. Jones, Ph.D.
  • 2003 - AP - The Retrospective Life Insurance MethodA Pedagogic Spreadsheet Application, by Betty J. Simkins and David R. Lange - 31p

  • 2009 - AP - Measuring the Actuarial and Financial Effects on Life Settlements, by David Lange and Joseph A. Newman - 24p
    David R. Lange, Auburn University Montgomery
    Joseph A. Newman
  • 2010 - AP - Universal Life Insurance Duration Measures, by David Lange, Peter Alonzi and Betty J. Simkins - 14p
  • 2010 - AP - The Financial Basis for No Lapse Universal Life Insurance, by David Lange and Lise Graham - 21p
  • <WishList> - 2014 - Presentation - "Interest Sensitive Life Insurance In a Low Interest Rate Environment," Academy of Economics and Finance, 51st Annual Conference February 12-15, 2014 - shsu.edu/eco_mdb/aef/aef2014Program-v1.pdf  - p44
  • 2001 - AP - "Calculating funding premiums for universal life insurance,” by Calvin Cherry, April 2000 (Discussion), July 2001, North American Actuarial Journal 5(3), DOI:10.1080/10920277.2001.10596003, Authors: David R. Lange and Betty Jo Simkins
    • 2000 - AP - Calculating Funding Premiums for Universal Life Insurance, by Calvin D. Cherry F.S.A., North American Actuarial Journal, Volume 4, 2000 - Issue 2
  • 1985 - SOA - Measuring the Interest Rate Risk, by Paul R. Milgrom, Society of Actuaries - 62p


  • 2010 - LC - Maloof v. John Hancock Life Ins. Co. -  60 So. 3d 263 - Alabama Supreme Court Opinion  ---  [BonkNote]  ---  39p  
  • (p32) - David Lange - Defense Expert Witness
    • However, the evidence presented by the Maloofs' expert, Dr. David Lange, makes clear that these policies were so significantly underfunded that John Hancock knew at the time it issued the policies that significant additional payments would almost certainly be necessary. When asked about the language in Glasgow's letter that premium payments "may be" required, Dr. Lange stated:
      • "But [Glasgow is] an insurance sales person who sold this policy and ran the illustration and would certainly be aware of the Statement of Policy Cost and Benefit Information and be aware the interest rates had declined.
        • "In fact, the — that this policy by '92, and since he had run a large number of illustrations in these various documents, he had to know from the beginning it wasn't going to make it. It was going to make it to seventy-four or thereabouts. And since interest rates were coming down, was unlikely to do so. I'm amazed, absolutely amazed that he would use the phrase: `it may be necessary.'"
      • Further, when questioned about Glasgow's representation that the policy period could be extended by a reduction in the death benefit, Dr. Lange stated, "It's actually a complete falsity."
      • A reasonable person could understand from this evidence that it was readily apparent to John Hancock and to Glasgow that the policies were so underfunded at the time they were issued that they would fail in the purpose intended for the Maloofs. Moreover, an insurance expert like Dr. Lange, trained in the mathematics of insurance policies, could also uncover this fact. However, when questioned about a layman's ability to understand the policies, Dr. Lange stated:
        • "The difficulty I have with that is because of the calculations involved in there, that I'm not sure someone, even if they read it, would appreciate the mathematics involved."