Van Mueller

  • Claudia Perez PHP – Van Muller : Life insurance is the world’s safest industry! – [NAIFA] – [VIDEO-YouTube-04:20]

 

  • Speaking from my IMSA experience, there’s a lot of emphasis on internal replacements, replacement activity, trying to meet those definitions, and track that activity, but beyond that, not much is captured in the applications.
  • But at some companies that I’ve talked to, there’s a real concern about funds coming from a lump sum paid out of a 401(k) plan.
  • The concern is that these are qualified monies, and that somehow a broker/dealer/sales agent rolls them into a non-qualified variable annuity.
  • That would really be ripe for some kind of abuse because you’re probably not helping out that customer.
  • So you have to go through a litany of questions with the customer, like:
    • “Is this the right time to buy this annuity?
    • Are you fully funding your 401(k)?
    • Are you in your deferred comp plan at work?”
  • We need to determine the right choice and order of priority for some of those kinds of issues.
  • Regulators make a comparison with the existing insurance program to determine if a company is really looking at the customer’s profile.

—  Dana Rudmose, not a member of the sponsoring organizations, is Director of KPMG Peat Marwick in Columbus, OH

1998 – SOA – Market Conduct: A New Actuarial Frontier, Society of Actuaries – 20p