Project - NAIC - Snippets

  • I would say to all of you that if you think that you don't have any customers or any agents who fail to understand what a nonguaranteed illustration really means, you're kidding yourself.

--  Walter Miller, Prudential

1991 - SOA - Illustrations, Society of Actuaries - 20p

[Bonk:  Could Walter have added Senators, Judges,Home Office Employees, Regulators and more to that list?]

  • Richard Minck, ACLI... said the most striking change in life insurance in past years was in the non-guaranteed elements.

1994-1, NAIC Proceedings

  • The following items are typically considered Non-Guaranteed Elements in a flexible premium UL contract:
    • Monthly contract charges and policy loads
    • COI charges
    • Spreads on credited interest rates vs. the actual investment earned rate

2006 12 - AAA to NAIC - Report on Valuation Effects of a Principle Based Approach (“PBA”) For Accumulation Type Universal Life, American Academy of Actuaries’ Life Reserves Work Group Modeling Subgroup - 15p

  • (p11) - Brosnahan: I would like to move on to the non-guaranteed  elements unless the Court has any questions.
  • THE COURT: No.
  • MR. BROSNAHAN: There are two aspects in which we contend that the illustrations were deceptive with regard to the non-guaranteed elements.
    • Both of these theories relate to what we consider to be hidden defects in the structure of these policies.
    • Now, first, with regard to the volatility issue, we allege that these policies suffer from a material risk that is not disclosed because large fees are deducted from the policy in both good times and bad...

DOC 815 TRANSCRIPT for proceedings held on 2/14/2011 - p41

LC - Walker vs LSW, Life Insurance Company of the Southwest