1986-2

1. Report of the Life and Health Actuarial (EX5) Task Force

John Montgomery (Calif.) presented the report of the Life and Health Actuarial Task Force.

  • The various new projects and their suggested priorities were summarized in the report.
  • In response to the question of how so many projects could be added to the already long list of projects that are currently worked on, Mr. Montgomery noted that there are many different advisory groups so work could proceed simultaneously on each.
  • Academy - Implementation of the valuation actuary concept for life insurance companies continues to be a major item on the Academy's agenda.
  • There are a number of regulatory, insurance industry and professional actuarial committees and task forces working on various aspects of the valuation actuary concept.

1986-2, NAIC Proceedings

  • Yield Index Advisory Committee,

ATTACHMENT ONE-E
PRESENTATION TO THE NAIC ACTUARIAL TASK FORCE - MARCH 8,
1986
REQUESTING A REVIEW OF PRESENT RESERVE METHODS FOR
VARIABLE LIFE INSURANCE MINIMUM DEATH BENEFIT GUARANTEE
I. Introduction
a. I am Randy Marash, an actuary with Monarch Resources.
b. As mentioned in Jerome S. Golden's memo to Ted Becker, we are
recommending review of the Minimum Death Benefit Guarantee (MDBG)
reserve requirements in light of new and future variable life
products and the current portfolio makeup and separate account
investment vehicles currently available.
II. Brief Description of MDBG and associated reserve

1986-2 NAIC Proc. 
(EX5) Task Force. The Actuarial Task Force requested that the Universal and Other New Plans (A) Task Force adopt the following six recommendations contained in the report:

Boston - June 8, 10, 1986

  • 7. Appointed a subgroup on Life and Health Advertising Issues and Model Regulations.
  • 10. Adopted a motion to request the Executive Committee to expand the charge of the Task Force to study the feasibility of creating a data base for use in targeting market conduct exams.

1986-2, NAIC Proceedings

3. Review of Life and Health Advertising Issues and Model Regulation

  • Mr. Synnott stated that this matter was added as a charge to the Task Force at the request of NAIC President Jo Driscoll.
  • Kathy Turner (Ore.) made a presentation regarding the issue.
    • She stated that regulation has not kept up with the added new life insurance products and that the NAIC Model Regulation should be studied for appropriate changes.
    • She also noted that Oregon has seen numerous advertisements that do not appear to conform
      to even existing regulations in force.
  • Mr. Synnott added that the Virginia Department has an
    extensive code provision and would make this available to the Task Force for consideration.

    • He then appointed a subgroup on the issue  consisting of Virginia, Iowa and Utah and to be chaired by Illinois.

1986-2, NAIC Proceedings

LIFE INSURANCE
Accounting: see ACCOUNTING
Advertising -- Rules Governing the Advertising of Life Insurance:
1975 Proc. II 326-330 (adopted)
1976 Proc. II 373-374 (disclosure requirements for IRAs)
Annuities -- Valuation, Solicitation, Disclosure, etc: see ANNUITIES
Buyer's guide: see "Cost Comparison" below under this heading
Cost Comparison --Life Insurance Disclosure Model Regulation, formerly: "Life Insurance Solicitation Model Regulation":
1976 Proc. I 523-527 (adopted)
1976 Proc. II 545-552 (reprinted with technical amendments and with the Life Insurance Buyer's
Guide -- 549-552 as an appendix)
1978 Proc. I 472 (corrected)
1984 Proc. I 497 (renamed, amended and reprinted)
(The following have all been supplanted by the Model Regulation above.)
a. Deceptive Practices in Life Insurance Model Regulation:
1973 Proc. II 541-543 (adopted)
1974 Proc. I 442443 (amended)
b. Life Insurance Cost Comparison (Interest Adjusted Index) Model Regulation:
1973 Proc. II 538-540 (adopted)
1974 Proc. I 442 ( corrected)
Credit Life Insurance: see subhead under CREDIT INSURANCE
Deposit Funds: see subhead under ANNUITIES
Fraternal Insurance: see subhead under FRATERNAL INSURANCE
Industrial Life Insurance Model Bill:
1983 Proc. I 687-691 (adopted)
Industrial Life Insurance Uniform Act:
1943 Proc. 177-179 (text)
1944 Proc. 64 (adopted)
Insolvency: see INSOLVENCY
Mass Marketed Life and Health Insurance Model Act:
1978 Proc. I 350
Modified Guaranteed Life Insurance Regulation:
1986 Proc. II 602 (adopted)
Nonforfeiture Values and Reserves Valuation: see NONFORFEITURE VALUES AND RESERVES VALUATION
Policy Loan Interest Rate Model Bill:
1973 Proc. I 290-291 (static alternative)
1981 Proc. I 535-536 (dynamic alternative)
NAIC Proceedings - 1986 Vol. II
LIFE INSURANCE (Cont'd)
Premium Deposit Funds: see subhead under ANNUITIES
Premium Financing of Life Insurance for College Students, Model Regulation or Guideline:
1972 Proc. I 600-602 (adopted)
Readability: see READABILITY
Reinsurance (nonadmitted) of Ceded Reserves: see REINSURANCE
Replacement: see REPLACEMENT
Solicitation of Life Insurance: see "Cost Comparison" subhead under this heading
871
Standard Nonforfeiture and Standard Valuation Laws: see NONFORFEITURE VALUES AND RESERVES
VALUATION
Uninsured and Partially Uninsured Nonregulated Plans: see WELFARE AND PENSION FUNDS
Universal Life Insurance Model Regulation
1984 Proc. I 515-526 (adopted)
Variable Life Insurance and Variable Annuities: see VARIABLE LIFE INSURANCE AND VARIABLE ANNUITIES
War Risk Exclusion Provision:
1951 Proc. 114-116 (statement of principles and provisions)
1952 Proc. 106-109 (amended)
Welfare and Pension Funds: see WELFARE AND PENSION FUNDS

MARKET CONDUCT SURVEILLANCE (EX3) TASK FORCE
Subordinate groups:
Collision Damage Waivers Subgroup
Life Insurance Coupled With Annuities Subgroup
Life Insurance Couples with Student Loans Subgroup
Report (6-8-86)
Adopted by Market Conduct (EX3) Subcommittee
Report 13-9-861
Adopted by task force .
Charged to evaluate Life and Health Advertising Model Regulation
California Assembly Bill No. 4373 .................. .
Collision Damage Waiver Model Act ..
Ad Hoc Committee's Letter on Collision Damage Waivers
Ad Hoc Committee Proposal
Industry Proposal ....
"Virginia Draft" of Collision Damage Waiver Model Act ...
Amended "Virginia Draft" for exposure ..
Life Insurance Coupled With Annuities Subgroup Report
893
........... 163
. .................. 22
. .... 162
... 162
......... 162
... 162
.. 172
162
.. 187
. ......... 172
..... 81
. ..... 201
. ... 177
.175, 180
192
184
. ........... 181
. ... 185
Model Regulation Concerning the Sale of Life Insurance Products and Annuities Exposure Draft .
Student Loan Program Memorandum from Georgia
189
. 191
....... 189