1980s - NAIC - Insurance Regulators - Snippets

  • The FTC efforts to deter state action on life insurance cost disclosure, under the guise of assisting the states, when in fact, the game plan was to initiate an FTC regulation on the basis that the states failed to act, might be described as a federal fraud.
    • 1979 - FTC - Report - Life Insurance Cost Disclosure, Federal Trade Commission - 460p

1980-1, NAIC Proceedings - 1979 1203 - Wesley J. Kinder, California Insurance Commissioner, Vice-Presidential Address - re: FTC Report - (p8-13) / (p63-68)

  • So I think that the NAIC is going to have to relook at the whole issue of life cost disclosure.
    • It is an issue that will not go away.
    • ⇒  As long as the internal benefits of a policy are not reflected in the premium, people need help in measuring those benefits.
    • ⇒  That is, in a nutshell, what cost disclosure systems have tried to do. (p10-11)

--  Susan Mitchell, Wisconsin Commissioner of Insurance

1981 0921 -  GOV (House) - Insurance Agent Commission Deregulation - [PDF-109p-GooglePlay, VIDEO-?] -

  • As you know, revolutionary changes are taking place in the life insurance business.
    • To a large extent, these changes have passed regulators by, and have left the regulators in a position of trying to catch up.

--  J. Alan Lauer, Pennsylvania, Deputy Insurance Commissioner, Actuary

1983-1, NAIC Proceedings

  • Sometimes it is the same with insurance departments.
    • If you like the idea, go ahead and do it.
    • I think that is what the New York State Insurance Department did with Regulation 126, and I think that that is what the Department is doing with Regulation 130 regarding investments in high-yield, high-risk obligations by domestic life insurance companies. [Junk Bonds]

--  Robert J. Callahan, Fellow of the Society and has been with the New York State Insurance Department for over 35 years.

1987 - SOA - Quantifying The C-1 Risk (Defaults in Fixed Dollar Investments and Market Value Changes in Equity Investments), Society of Actuaries - 32p

  • Commissioner Hager of the Universal & Other Plans (A) Task Force stated that there appeared to be disclosure problems with universal life plans and that the identification of these items should be placed on the Actuarial Task Force agenda.
  • Some of the items identified which should be disclosed:
    • 2) adequate disclosure of the fact that a premium quoted will not support the contract for the whole life if the policy is a universal life policy;

1988 Proc. II 566. - Universal Life Insurance Model Regulation - Proceeding Citations 

We cannot play word games with policyholder money. (p74)

--  Karl L. Rubenstein, Special Deputy Insurance Commissioner, State of California

1988 0914 and 0915 - GOV (House) - Insurance Company Failures, John Dingell (D-MI)   ---   [BonkNote]