Numeric Summary Illustrations and Premium Limits The NAIC Life Insurance Illustrations Model Regulation requires a basic illustration to consist of a numeric summary of the death benefits and values on three bases: Here is an example. The policy illustrated below is $100,000 specified amount with a $60 policy load, assessed monthly. The guaranteed interest rate…

Read More

Q: Why didn’t the ACLI / NALU / NAIFA Show Up? We invited some members of the Advisory Committee to testify today, too. We asked the National Association of Life Underwriters representing over 140,000 life insurance agents to send the chairman of its Illustration Task Force.  —  [NALU – Currently NAIFA] We invited the American Society…

Read More

Q: Who Created Universal Life Insurance? Life of California / California Life E.F. Hutton James C.H. Anderson George R. Dinney James C.H. Anderson Maurice H. Lavita Professor Robert  Mehr other soa guy WHO CONCEIVED THIS INSTRUMENT? – Universal Life Insurance Subject to responsibility being accepted (and documented) by somebody else, we hold that the father…

Read More

Yield Index Yield Index Advisory Committee – NAIC 1989 – SOA – What Will Be The Life Insurance Products Of The Future, Society of Actuaries – 18p  1987 – SOA – Regulatory Update, Society of Actuaries – 26p The NAIC Yield Index Advisory Committee was started in the middle of 1984 at the behest of the…

Read More

Benefits – Consumer Representatives 􀁸 How much do the benefits build up in the policy? 􀁸 How will the timing of money paid and received affect interest? 2018 – LIBGWG – Cude Letter / Markup Life Insurance Buyer’s Guide – Revised 2-9-18 for discussion on conference call 2-22-18 1994-2, NAIC Proceedings – June 13 -…

Read More

Benefits – Regulators 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…

Read More

Benefits – Actuarial 2017 1115 – Letter – AAA to LIBGWG – Re: Life Insurance Buyer’s Guide Q&A Draft 8/1/17, American Academy of Actuaries, Life Insurance Buyer’s Guide Working Group (A) – NAIC – 2p Universal life also allows for flexibility in policy benefits, not just premium payments. Maybe he is not getting all the…

Read More

Regulators – Time in Office As Steve mentioned, I’ve had the privilege of serving as Director of the Illinois Department of Insurance for just less than two years and given the history of tenure of commissioners….. I may be becoming an endangered species. —  Stephen Selcke, Director of the Illinois Department of Insurance 1993-2, NAIC…

Read More

1993-2 Finally, I want to offer a comment on recent action taken by the NAIC that I think has served to provide some confusion, if you will, to regulators, regulated industries and consumer participants. That has to do with our decision to abolish formal advisory committees. I think we recognize the need to refine our…

Read More

State vs Federal Regulation McCarran-Ferguson Optional Federal Charter Now, consumers don’t care who regulates insurance. We really don’t care if it is Federal or State. But we do care if it is any good, and it isn’t good today. —  Statement of J. Robert Hunter, Director of Insurance, Consumer Federation of America 2007 1030 -…

Read More