Prudential - Vanishing Premium

  • 1985 0719/0722 Impact of Tax Reform on Insurance Industry)
    • [PDF-GooglePlay-Part 7 of 9-1175p, VIDEO-CSPAN]
    • ⇒ Robert Beck, Prudential CEO - Under some permanent insurance, contracts being sold today, the chances are you could stop paying after 7, 8, or 9 years and the insurance would remain in force for the rest of your life without further premium payments. (p6069) / (VIDEO-CSPAN - (at approx. 2:27:00-2:27:30)
    • Witnesses testified on the effects that President Ronald Reagan’s proposed tax reform will have on the Life insurance industry.
    • House - Committee on Ways and Means
  • Thus, we have universal life policies with a so-called low target premium where excess interest earnings can carry the policy for the whole of life with the payment of that low premium.
  • We have the other extreme where the premium is higher but through the use of dividends or excess interest earnings, premiums are paid for only a few years.

--  John L. Marcus

  • Senior Vice President of Prudential, in charge of the Insurance Services department.
    • He is also Chairman of Pruco Securities and Vice-Chairman of Pruco Life. In these capacities he is responsible for the development of Prudential's investment type products.
  • At its inception, Mr. Marcus was a deputy on the American Council of Life Insurance (ACLI) Task Force on Financial Services Integration.
    • As a member of its Blueprint Committee he was one of the authors of the ACLI's study of financial services in the 1980's. <WishList>

1984 - SOA - Deregulation of Financial Industries (rsa84v10n221), Society of Actuaries - 30p

  • 1997 - LC - In re Prudential Ins. Co. of Am. Sales Practices Litig., 962 F. Supp. 450, 525 (D.N.J. 1997) (discussing the vanishing premium, improper replacement ("churning"), and deceptive investment scheme claims)
  • 1998 - LC - In re Prudential Ins. Co. of Am. Sales Practices Litig., 148 F.3d 283 (3d Cir. 1998)
  • Report - Multi-State Life Insurance Task Force and Multi-State Market Conduct Examination of The Prudential Insurance Company of America
  • 1994 0613 - apnews - Life Insurance Buyers Allege Misleading Sales Tactics Were Used With PM-Vanishing Premiums-Illustrations, by Mark Dennis - [link]
  • 1995 - LC - The Prudential Insurance Company of America Sales Practices Litigation - United States District Court, D. New Jersey.
    • 911 F. Supp. 148 (1995)
    • MDL No. 1061. - United States District Court, D. New Jersey. - December 19, 1995.
  • 1995 - LC - In Re: PRU SALES LITIGATION, et al v. PRUDENTIAL INSURANCE, et al
  • 1995 0103 - WSJ - Fine Print Victims: Some Agents 'Churn' Life Insurance Policies, Hurt Their Customers, by Leslie Scism - <WishList>