Universal-Flexible Factor

  • <WishList>
    • 1982 - New Jersey - Universal/Flexible Factor: life insurance informational hearing.
      • Department of Insurance, New Jersey. Department of Banking & Insurance
      • [Bonk: the NAIC also has it in their Database, but it is currently unavailable for viewing (as of 2023)]
  • Bill White, chief actuary, New Jersey, reported on their special project pertaining to universal life. - <WishList>
  • Their commissioner, on June 25, 1982, declared an 81-day moratorium on "Universal-Flexible Factor" type of policies.
  • His staff was directed to
    • (1) study the matter and issue a position paper on the subject;
    • (2) conduct public hearings on March 10-11;
    • (3) terminate the moratorium April 16 with the publishing of a set of guidelines. - <WishList>
  • Reports and results have been mailed to each insurance department.
  • Some of the questions New Jersey conveyed included:
    • (1) are these policies participating or non-participating;
    • (2) the "Bait and Switch" potential;
    • (3) disclosure;
    • (4) Federal Income Tax aspects;
    • (5) non-forfeiture values;
    • (6) replacement problems.
  • The concern was not just with the "twisting" replacements, but was the impact of justified replacements on the solvency of replaced companies.

1982-2, NAIC Proceedings