1990s - Agent - Snippets

  • (p117) - If the life insurance industry were serious about offering competitively priced policies to consumers, it would ask itself why total life insurance premium receipts of all U.S. companies in 1990 is less than the sum of new premium purchases over the last 9 years.
    • Why does it appear that consumers are replacing the industry's entire book of business every 8th or 9th year?
    • Are agents not being allowed to give consumers enough information to make informed purchases?  

--  Rick K. Nelson, Independent Insurance Agent

1991 0613 - GOV (House) - Insurance Competitive Competitive Pricing Act of 1991 - [PDF-237p-GooglePlay, 

  • As insurance producers we are not a homogeneous lot.
    • Each of us conducts his practice in a different manner. Each of us is unique.
    • Our association is big enough to contain the producers earning $1,000,000 per year along with those earning $20,000 and failing.
    • We have room for those of us who drink knowledge with a great thirst along with the many who basically don't know what they're doing.
    • Sad to say there are large numbers of producers including big earners - who are screwing the insurance buying public through their own ignorance. (p161-162)

--  Arthur Shievitz, Agent - Letter - 1990 0501

1991 0613 - GOV (House) - Insurance Competitive Competitive Pricing Act of 1991 - [PDF-237p-GooglePlay, 

  • I sincerely believe we have a flawed instrument in today's sales illustrations.
  • ...we did not communicate the impact of change as well as ...we should have.
  • Our biggest mistake would be to delay.
  • I don't believe the consumer will tolerate or forgive us, let alone the regulators, if we do nothing.
  • I'd like to stress that agents don't pretend to know the answers.
  • It is our intent to ask for your help** because we're currently living with problems that lack solutions.
    • [Bonk:  **"your help" = actuaries help]

--  Robert Nelson, Chairperson of the National Association of Life Underwriters (NALU) Task Force on Illustrations -  [Currently NAIFA]

1993 - SOA - Sales Illustrations: We Can't Life With Them, But We Can't Live Without Them!, Society of Actuaries - 20p

  • (p18) - The training we received was sales training only.
  • The home office people who came to the Sioux City, IA, office said:
    • Don't try to become a Ph.D. in variable life insurance; just learn enough to sell it and go. 
  • This is what they told the whole office, and this was how I trained any new men that I hired: 
    • Just sell it; do not worry about it. 

--  Jerry C. Keating, Training Manager, John Hancock, Iowa

1993 0525 - GOV (Senate) - When Will Policyholders Be Given The Truth About Life Insurance?, Howard Metzenbaum (D-OH)  ---  [BonkNote]

  • (p18) - Just before I got sick in 1990, the company seemed to change.
    • They started telling us about the risks.
  • The "rescue program" was the worst of the worst.
    • It was the company's solution to variable life policies that had loans on them—or did not have loans on them.
    • The management in Sioux City allowed the agents to replace every VLI policy that was written with flexible variable life insurance.
    • ...
    • The risk was placed firmly on the shoulders of the insured.
  • This statement is only the tip of the problem.
    • There are hundred and hundreds more.
    • ⇒  And, Senator Metzenbaum, I would like to tell you, sir, if you do not get the Government to do something about this, you haven't seen nothing yet.

--  Jerry C. Keating, Training Manager, John Hancock, Iowa

1993 0525 - GOV (Senate) - When Will Policyholders Be Given The Truth About Life Insurance?,  Howard Metzenbaum (D-OH)   ---   [BonkNote]

  • Randy Barkacs, Western Southern:
    • ...  said many consumers cannot distinguish between universal life and whole life.
    • ...  said a narrative explanation was needed because many did not understand the numbers or the fact that a universal life policy might drain the cash value until there was no coverage left.

1994-3, NAIC Proceedings