NALU - National Association of Life Underwriters, cka NAIFA

  • NALU - National Association of Life Underwriters
  • William Albus
  • Thomas Gregg
  • Robert Nelson
  • Alan Press
  • Carney Smith
  • Mel G. Todd
    • 1993 0525 -  GOV (Senate) - When Will Policyholders Be Given The Truth About Life Insurance?, Senator Howard Metzenbaum (D-OH)  ---  [BonkNote]
      • Mel G. Todd - President, Clark/ Bardes, Inc., Dallas, TX, a fellow of the Society of Actuaries and a member of the American Academy of Actuaries and belong to the National Association of Life Underwriters
        • (p7) - However, I am not representing any of these organizations at this hearing today.
  •  S. Roy Woodall, Jr.
    • 1981-1, NAIC Proceedings - Task Force on Life Insurance Disclosure System (LIDS)  ---  [BonkNote]
      • NALU Comments on Behalf of the National Association of Life Companies Presented by:  S. Roy Woodall, Jr., Executive Vice-President ……...610
  • 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.

--  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 - 28p

  • 1955 - AP - The Origins of the National Association of Life Underwriters. Business History Review, Proschansky, H, 29(3), 238-262 - <WishList>
  • 1994-1, NAIC Proceedings -  NALU /NAIFA Statement - Illustrations - 18p
  • 1996 0930 - National Underwriter, Life & Health/Financial Services Edition - NALU Takes Position On 'Total Cost Disclosure' - 2p - <WishList>
  • Carney Smith, of the National Association of Life Underwriters, called for more consumer 'information' from companies and stronger self-policing within the insurance industry. (NALU)

1973-1, NAIC Proceedings

  • Second, an adequate flow of long-term capital is a critical need of a free society.
  • Indeed, many of the problems this country is experiencing at the present time are reportedly due to the fact that we don't have an adequate flow of long-term capital.
  • Whole life for over 100 years has been a major factor making it possible for the insurance industry to provide that long-term capital to this country.
  • That a Government agency at this critical point in time should espouse and recommend to the American people that this time-proven vehicle for the creation of long-term capital which served those same people so well should be abandoned in favor of term insurance is hard to believe.  (p79)

-- Thomas J. Wolff - [NALU/ NAIFA] National Association of Life Underwriters

1979 0710 and 1017 - GOV (Senate) - FTC Study of Life Insurance Cost Disclosure, Senator Howard Cannon (D-NV)   ---  [BonkNote]  ---   [PDF-592p]

  • Moss Committee Report of 1978
    • The findings and conclusions, and this is the part that created the explosion, were that there is a shortfall of information, particularly with respect to ordinary life and that consumer experience does suggest that the consumer is not able to adequately determine the suitability of the product, the quality of the product, or the cost of the product.
  • As a consequence, consumers are sustaining losses, and this would be a definite indication of a market failure.

--  Jack E. Bobo, Executive Vice President of the National Association of Life Underwriters (NALU)-- NAIFA

1979 - SOA - Cost Disclosure (Moss Report), Society of Actuaries - 18p

  • 1978 0807, 0814 and 0815 - GOV (House) - Life Insurance Marketing and Cost Disclosure, Congressman Moss (D-CA) - [PDF-826p-govinfo.gov]
    • 1978 12 - GOV (House Report) - Life Insurance Marketing and Cost Disclosure Report Together with Dissenting Views, Congressman Moss (D-CA) - [PDF-106p]
  • Actually the demands for many of these new products come from the marketplace. (p338)

-- Thomas Gregg, National Association of Life Underwriters. (NALU) 

1983 0510, 0511 and 0728 - GOV (House) - Tax Treatment of Life Insurance, Pete Stark (D-CA)  ---  [BonkNote]

  • William Albus (National Association of Life Underwriters) commented that the requirement for disclosing sales commissions is unnecessary because it is superfluous and would only confuse consumers.
  • He stated that the purpose  of disclosure is to provide information for making an informed decision and the disclosure of sales commissions has nothing to do with making this decision.

1988-2, NAIC Proc.

  • An agents’ association representative [Robert M. Nelson, NALU, NAIFA] reported that his group was concerned about problems because agents are generally the first to hear the disappointments, confusion and bitterness created by the unrealized expectations of policyholders.
    • Of paramount concern to agents is the fact that illustrations may not be supportable under current actuarial standards of practice.
  • He asked the group to concentrate on the serious problems caused when illustrations of non-guaranteed elements and dividends are not supportable for even a few years into the future and tend to overstate the amount of non-guaranteed elements and dividends likely to be paid.
  • The association recommended more precise definitions and stricter rules on supportability and current experience.
  • The association also asked the NAIC to take action to sensitize policyholders to the effect of a change in interest rates, and to mandate a signed disclosure statement where the consumer acknowledges he has read the illustration and understands it.

1993-1 - NAIC Proceedings

  • 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.

--  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 - 28p

  • Mr. Morgan also asked what percentage a field agent was allowed to use in an illustration and Mr. Nelson responded that it could not be larger than what was currently being paid, but in a declining market that may not be a valid projection of future results.  (p251)

1993-1, NAIC Proceedings

  • Mr. Morgan - Noel Morgan (Ohio)
  • Mr. Nelson - an insurance agent from Nebraska who is chair of the National Association of Life Underwriters Sales Illustrations Task Force
  • Mr. Albus said:
    • there was a need to illustrate non-guaranteed elements, but consumers must understand that they are not guaranteed.
    • He thought it was a good idea to tighten up the parameters of assumptions.
    • He said his group was working on the concept of a sensitivity index to allow consumers to see what would happen when assumptions changed to a small degree.

--  William Albus (National Association of Life Underwriters -- NALU / NAIFA)

1993-3, NAIC Proceedings

  • 1994-3, NAIC Proceedings
    • Mr. Nelson [NALU/ NAIFA] stated that, in his opinion, consumers can not differentiate between illustrations that show what is possible and improvements that are probably not possible.
  • I'd like to stress that agents don't pretend to know the answers.
  • It is our intent to ask for your [actuaries] help because we're currently living with problems that lack solutions.

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

1993 - SOA - Sales Illustrations - We Can't Life With Them, But We Can't Live Without Them!, Society of Actuaries - 28p