Firsts

  • When an issue begins is sometimes difficult to discern..

--  Norman K. Martin

1981 - SOA - Individual Life Insurance Cost Disclosure Issues, Society of Actuaries - 22p

  • AL - Adjustable Life - 
  • Cost Disclosure - 1968 Senator Hart 
  • VAs - Variable Annuities - 1950s
  • VLs - Variable Life Insurance - 1970s - Equitable Life
  • GICs - Guaranteed Investment Contracts - early 1970s
  • IUL - Indexed Universal Life - 
  • UL - Universal Life 
  • VUL - Variable Universal Life - 
  • When an issue begins is sometimes difficult to discern.
  • This particular issue may be traced to an address to the American Life Convention Annual Meeting in 1968.
    • The late Senator Hart advised the insurance industry that it should improve cost disclosure.
    • Senator Hart had become somewhat frustrated when the Veterans Administration had told him that they could not advise veterans as to which policies might be attractively priced for conversion of GI insurance.

--  Norman K. Martin

1981 - SOA - Individual Life Insurance Cost Disclosure Issues, Society of Actuaries - 22p

  • As you know, VAs have been around since the 1950s, and variable life insurance has been written since 1975 when the Equitable wrote the first policy.

--  John T. Adney, a founding partner of the law firm of Davis & Harman LLP in Washington, DC

2000 - SOA - Separate Account Products in the U.S. and Canada: Comparing Their Design, Regulation, and Taxation, Society of Actuaries - 28p

  • Pension Products
    • The life insurance industry had always been the major player in the defined benefit pension market.
      • The industry had played a much less significant role in the accumulation of defined contribution plans.
    • However, in the early 1970's the first Guaranteed Interest Contract (GIC) was developed to provide older workers in defined contribution plans with a means of reducing fund volatility as they approached retirement.
    • The GIC was designed to provide a bond portfolio type return with the ability to transfer-funds without a market value adjustment.
    • Although they were initially designed for workers nearing retirement they ultimately proved quite popular as the conservative option (i.e., fixed interest rate) for all plan participants.

1991 0717 and 0724 - GOV (House) - Life Insurance Solvency Issues - [PDF-217p-GooglePlay,

  • Testimony of Terence Lennon (NEW YORK Department of Insurance) - 17p
  • House - Committee on Energy and Commerce - Consumer Protection and Competitiveness
  • Impact of Junk Bonds Real Estate and Mortgage on the Life Insurance Industry