Pyramid

  • B. Marketing and Operations
    • 1. Direct Marketing
    • a. Mail ,
      • b. Telephone
      • c. Fax
      • d. Seminars '
      • e. Television and Radio
      • f. Computer
    • 2. Agents - Licensed and Unlicensed
    • 3. Brokers
    • 4. Managing General Agents (MGA)
    • 5. Third Party Administrators (TPAs)
    • 6. Associations (profit and non-profit)
    • 7. Pyramids
    • 8. Multi Jurisdictional Operations (Operate in more than one state or country, making it difficult to investigate, regulate, prosecute or sue to protect insureds)

Unauthorized Entities Manual For State Department of Insurance - ATTACHMENT TWO-D1

1994-4 - NAIC Proceedings - Executive Committee

  • Commissioner Willis (DC) said he would not allow the demonstration of lapse-supported rates because it was perceived as a bonus.
    • He compared it to a pyramid scheme, only the opposite, because it started with many and ended with few. 

1994-3, NAIC Proceedings - Life Disclosure Working Group of the Life Insurance (A) Committee