Bulletin on Illustrated Interest Projections - NAIC

  • Projected Interest Earnings Working Group - NAIC
  • 1990-2 - Projected Interest Earnings Working Group April 1 7, 1990 Report (Attachment Three‐Bl) ... 578
  • 1991-1A - Bulletin on Illustrated Interest Projections Amended Exposure Draft (Attachment Eight-A) .......... 561
  • 1994-1A, NAIC Proceedings - 7. Adopt Illustrated Interest Projections Bulletin
    • Commissioner Mike Weaver (Ala.) said that he, Commissioner Doug Green (La.) and Neil Rector had drafted a bulletin to assist insurers in conforming with the NAIC model on the Rules Governing the Advertising of Life Insurance, the Life Insurance Disclosure Model Regulation and the Unfair Trade Practices Act.
      • He said two industry suggestions for amendment were considered by the working group in its conference call of Nov. 5, 1990 (Attachment Eight).
    • Mr. Swenson questioned whether it was the intent of the group that an illustration was included within the term "advertising" for the purposes of this bulletin.
      • Commissioner Yancey responded affirmatively.

  • 1990-2 NAIC Proc. - BULLETIN ON ILLUSTRATED INTEREST PROJECTIONS -  ATTACHMENT THREE-A - EXPOSURE DRAFT 6/4/90

    • SUBJECT: (Recital of applicable authority if needed and purpose of bulletin. Issuance of bulletin is to assist insurers in conforming with the Rules Governing the Advertising of Life Insurance adopted by the NAIC in 1975, the Life Insurance Disclosure Regulation adopted by the NAIC in 1975 and the Unfair Trade Practices Act adopted by the NAIC in 1947.)

      • I. Propositions Regarding Projected Interest Earnings A. An insurance company cannot advertise any interest rate for a product unless the rate actually then being paid by the company for that product is at least as high as the rate advertised;

      • B. A policy must clearly state for each interest rate advertised whether that rate is or is not guaranteed; and

  • 1991-1A, NAIC Proceedings - p561
  • 7. Adopt Illustrated Interest Projections Bulletin
    • Commissioner Mike Weaver (Ala.) said that he, Commissioner Doug Green (La.) and Neil Rector had drafted a bulletin to assist insurers in conforming with the NAIC model on the Rules Governing the Advertising of Life Insurance, the Life Insurance Disclosure Model Regulation and the Unfair Trade Practices Act.
      • He said two industry suggestions for amendment were considered by the working group in its conference call of Nov. 5, 1990 (Attachment Eight).
    • Tony Spano (ACLI) said that he agrees fully with the intent of the bulletin.
      • He pointed out a potential drafting problem in Section IB and C.
      • He said the original intent of the language of the amendment he submitted for the working group's consideration was that an advertisement must clearly state for each interest rate advertised, whether that rate is guaranteed.
    • The language as currently stated requires that interest rates be stated in the policy if guaranteed.
    • Jack States (State Farm Life Insurance Co.) reiterated that the policy contains only the guaranteed rate and does not speak to any other rates of interest the company may pay.
      • He said the purpose of the bulletin is to expand on the advertising rules which state what an advertisement must contain.
    • Neil Rector clarified that the intent of the working group was to require full disclosure of guaranteed rates in both the advertisements and the policy.
    • Commissioner Yancey recommended tabling this discussion until appropriate amendatory language could be drafted.
    • Mr. Swenson questioned whether it was the intent of the group that an illustration was included within the term "advertising" for the purposes of this bulletin.
      • Commissioner Yancey responded affirmatively.

1994-1A, NAIC Proceedings