1970 – Joint Special Committee of Life Insurance Costs

  • 1970 – Report of the Joint Special Committee on Life Insurance Costs – (p720-748) – 29p
    • Report to American Life Convention, Institute of Life Insurance, Life Insurance Association of America 
    • 1973 – GOV (Senate) – The Life Insurance Industry –  4 parts – Senator Hart – Part 1 – 0220 – PDF-794p
  • My interest in this challenging subject goes back to my membership on the 1970 Joint Special Committee chaired by Jack Moorhead.
  • This Committee proposed what was then known as the interest-adjusted method, which later became the basis of the NAIC approach now in effect in some 2/3 of the states.

—  C.L. Trowbridge

1981 – SOA – Individual Life Insurance Cost Disclosure Issues, Society of Actuaries – 22p

  • 1970 – SOA – Report on the Work of the ALC-ILI-LII Committee on Life Insurance Costs, by E. J. Moorhead, tsa70v22pt2dn62ab2 – Society of Actuaries – 2p
    • E. J. Moorhead explained why this committee was formed and the general tenor of its report, which is now in the draft stage but seems likely to be issued soon. He urged actuaries to give their support to the committee’s work, even if any of them might personally prefer a different approach.
    • He expressed the view that, if the life insurance industry does not exercise its own initiative in this matter, it may have an unpalatable solution imposed upon it.
  • 1972 – AP – An Empirical Investigation of Attitudes Toward the Life Insurance – Marketing, by O. C. Ferrell Jr. – 181p 
  • 1973 – SOA – A Ratio of Interest-Adjusted Cost Indexed for the Comparison of Dissimilar Life Insurance Contracts, by Peter L.J. Ryall, tsa73v25pt1n72ab5 – Society of Actuaries – 28p
  • The Insurance Industry recently appointed a Joint Special Committee of Life Insurance Costs to consider the method or methods that a buyer of life insurance may find most suitable for use in comparing premiums, dividends and cash values of comparable policies that are offered by different life insurance companies.
  • The Joint Special Committee issued a report on May 4, 1970 reviewing a long list of cost indices possibilities.
  • Three major methods were submitted;
    1. Methods that determine an Insurance cost index, having assumed an interest.
    2. Methods that determine an interest yield rate, having assumed a cost of insurance.
    3. Methods that relate the values of amounts paid by the company to amounts paid by the policyholder.  (p4)

—  Senator Roman L Hruska (R-NE) –  Ranking Republican Member, Senate Antitrust and Monopoly Subcommittee

1973 – GOV (Senate)The Life Insurance Industry – Hart, Part 1 of 4 – 794p