George Coleman

  • I think you have to catch people's attention, and that is all to the good.

--  George Coleman, Prudential, ACLI, TRG-Technical Resource Group for the NAIC (Industry Advisory Group - Illustrations)

1994 - SOA - Problems and Solutions for Product Illustrations, Society of Actuaries - 28p

  • George Coleman of Prudential...not an actuary. He's a lawyer...

-- Panelist

1998 - SOA - Current Issues in Sales Illustrations, Society of Actuaries - 26p

It is these concepts or the uses of the products and not the illustrations that are the difficulties here.

--  George Coleman

  • ...chairperson of the Technical Resource Group (TRG), which is the industry advisory committee to the NAIC Disclosure Committee.
  • ...vice president, government relations with Prudential Life Insurance Company.
  • ...responsible for Prudential's NAIC activities with special emphasis on life insurance.
  • ...serves as a member of the American Council of Life Insurance (ACLI) Legislative Advisory Committee, and Accelerated Benefits Working Group, Marketing Practices Task Force and is a member of several other groups.

1994 - SOA - Problems and Solutions for Product Illustrations, Society of Actuaries - 28p

  • SOA (3)
    • 1994 - SOA - Problems and Solutions for Product Illustrations, Society of Actuaries - 28p
    • 1996 - SOA - Life and Annuity Valuation Issues (vasp962), Society of Actuaries - 32p
    • 1998 - SOA - Current Issues in Sales Illustrations, Society of Actuaries - 26p
  • What I do not like is "high likelihood of meeting policyholders' expectations."
    • I think when we are talking about that, we are really talking about moving to guarantees and with all the problems attendant thereon.
    • The 44% of the values and benefits paid by Prudential in 1993 were nonguaranteed elements.
    • That is an important aspect of our sales, if we are trying to meet expectations, then I think we have a major problem.
    • If we are selling on the basis that this is going to fulfill your expectations without the disclaimers that are necessary, then we have some major problems.

--  George Coleman, Prudential, ACLI, TRG-Technical Resource Group for the NAIC (Industry Advisory Group - Illustrations)

1994 - SOA - Problems and Solutions for Product Illustrations, Society of Actuaries - 28p

  • --  George Coleman, Prudential, ACLI, TRG-Technical Resource Group for the NAIC (Industry Advisory Group - Illustrations)
    • Obviously, this isn't the first time the industry and the regulators have become involved in disclosure and with illustrations.
      • The NAIC models are replete with examples of actions taken to regulate the form of disclosures to consumers, the Model Disclosure Act, Life Disclosure Act, the Advertising Regulation, guidelines on marketing to seniors.
      • There are guidelines on variable products that people aren't very familiar with, and any number of such proposals.
    • The engine for the current effort at the NAIC, which I was involved in from the start or almost from the start, were hearings conducted by Senator Metzenbaum in the fall of 1992.
      • Those hearings focused on problems that were occasioned by the use of some abbreviated payment plans.
      • The concern was that, with the declining interest rates, policies were failing to abbreviate or vanish, as some people call it.
      • There was an expectation perhaps on the part of some consumers that they would vanish in all events at the end of six years or seven years or whatever, and that wasn't happening.

1994 - SOA - Problems and Solutions for Product Illustrations, Society of Actuaries - 28p

  • MR. COLEMAN: To the extent that standards can address that, then I think we are pointing in the right direction. I think with appropriate standards we can assure that a lot of the puff is taken out of some of these illustrations.

    • There are clearly some assumptions that are unreasonable.

199x-  -NAIC Proceedings