Specialty Policies

  • 1953 - SOA - Agency Problems--Resulting From Special Policies, Society of Actuaries - 3p
  • 1963 - LR - Regulation of Speciality Policies in Life Insurance, by Spencer L. Kimball and Jon S. Hanson, 62 Michigan Law Review 167 - 93p
  • 1979 0710 - NP - St. Cloud Times from Saint Cloud, Minnesota on July 10, 1979 ...http://sctimes.newspapers.com › newspage - Don't buy speciality policies
  • Model Life Insurance Solicitation Regulation
  • Management of our companies know as well as anyone could that the consumer is best served by a simple method to assist in selection of a product.
    • Complexity is of no help and can serve only to confuse the consumer.
  • Based upon these cost figures and a comprehensive review of your proposal, it was the unanimous opinion of the directors of NALC that it was time for us to say "Wait just a minute! This is insanity!"
  • The NALC was founded in 1955 as a direct result of a proposal being considered by the NAIC at that time, and supported by many large companies, that would have outlawed all "specialty" policies and  thereby put many smaller and more innovative companies out of business.
  • The criticism your report levels at the simplified net cost method centers on the fact that it does not reflect the time value of money.
    • This has never been disputed.
    • But when the consumer is so informed of the defects in any simplified method, perhaps that is all that you as regulators can or should do without risking the confusion of more complicated systems that leave the consumer worse off than he is today.

--  Comments on Behalf of the National Association of Life Companies (NALC) Presented by S. Roy Woodall, Jr., Executive Vice-President (p610)

1981-1, NAIC Proceedings

Task Force on Life Insurance Disclosure System – LIDS – NAIC  ---  [BonkNote]