1992-2b

  • (p1049) - LIFE & HEALTH ACTUARIAL (TECHNICAL) TASK FORCE
    • Proposed new NAIC Model Regulation for Valuing Life Insurance Policies (Attachment One-H)   ...........1084
    • Proposed new Actuarial Guideline EEE, Valuation Requirements of "Term-Like" Universal Life Insurance Products (Attachment One-1).....1109
    • Letter Describing Work of American Academy of Actuaries Committee on Life Insurance on Sales Illustrations and Non-guaranteed Annual Statement Interrogatories (Attachment One-L) ......... 1111
    • Proposed new Actuarial Guideline DDD, Valuation Issues vs. Policy Form Approval (Attachment One-M) ................................... 1112
  • (p1063) - 14. Disclosure and Sales Illustration Practice
    • The actuarial task force has become aware of two professional actuarial groups which are now studying sales illustrations for life insurance contracts.
      • Presentations on behalf of both these groups were made at the December 1991 actuarial task force meeting.
    • Judy Faucett commented on the work of the Society of Actuaries Task Force for Research on Life Insurance Sales Illustrations under the auspices of the Committee for Research on Social Concerns.
      • She is chair of that Society of Actuaries Task Force. No detailed information on the work of this task force was presented at the April 1992 or the June 1992 actuarial task force meetings.
    • Also studying life insurance sales illustrations is another subgroup of the American Academy of Actuaries Committee chaired by Mr. Polkinghorn.
      • (Please see also Section 13, "Non-Guaranteed Element Annual Statement Interrogatories," described above.)
      • Attachment One-L is a transmittal letter from Mr. Polkinghorn, with its attachment, forwarding a report that was recently prepared by his committee.
      • The transmittal letter includes comments on the general subject of life insurance illustrations.
      • A report on potential smoothness tests for non-guaranteed cash values was transmitted with this letter, but it was not included as part of this attachment.
      • Mr. Polkinghorn's transmittal letter requested guidance from the actuarial task force as to whether the smoothness test concept should be pursued further.
      • Mr. Polkinghorn was present at the June 1992 actuarial task force meeting.
      • However, the actuarial task force had only had this material for a relatively short period of time and no position was developed by the actuarial task force regarding the smoothness test.

1992-2B, NAIC Proceedings