Options

Options

• Derivatives, Futures, Options, Swaps etc – Government Hearings
• Policyholder Options
  • Premium Payment Options

• Michael Lovendusky, ACLI – said consumers are mostly confused about options, guarantees and riders.
  • The ACLI work group was considering asking the Life Insurance and Annuities (A) Committee to narrow the charge to look at only products with options, guarantees and riders, but Ms. Cude said she thinks that it is important to consider how the disclore for all products could be improved.
• Mr. Lovendusky, ACLI … said the ACLI work group thinks that most confusion for consumers involves complex products like Universal Life, and not Simple products like term life.

2016 0403, NAIC Proceedings – LIIIWG – Life Insurance Illustrations Working Group

• Insurance regulators have heightened this publicity by loosening or clarifying the regulations relating to insurance company uses of options for hedging purposes. 

1985 – SOA – Options on Bonds and Applications to Product Pricing, tsa85v375 – Society of Actuaries – 56p

• 2009 – AP – Implicit Options in Life Insurance, WP 33, by Nadine Gatzert, University of Gallen – 30p
  • The common types of life insurance products discussed in the previous section are usually replete with implicit options.
    • Implicit options provide the right to modify contract conditions during the contract term
    • Table 2: Overview of implicit options in life insurance.