ACLI - Snippets - 1970s

  • The most obvious, though not necessarily accurate, basis of comparison of policies of the same initial or minimum face value is the premium.  (p41)

1976 0909 - Letter - ACLI to NAIC - RE: Proposed Changes to the NAIC Model Variable Life Insurance Regulation - 1976-1 - NAIC Proceedings - p623-

  • (p413) - The cash flows of a policy are defined by the Society for this purpose as "the actual transfer of funds between the policyholder and the insurance company in either direction, and includes premiums, dividends, cash values and death benefits."  Actuaries Report, supra n. 33, at 6.

  • So what I am saying is that the Belth calculations cannot get out of a policy anything that isn't there already.

    • The premiums and the dividends and the amounts of insurance and the cash value8 are all there is to a policy.

    • You can fool around with them any way you like but mostly you can get at all the facts just by looking at basic things.

--  Julius Vogel, Prudential, on behalf of the American Council of Life Insurance, ACLI

1978 0807, 0814 and 0815 - GOV (House) - Life Insurance Marketing and Cost Disclosure, John Moss (D-CA)  ---  [BonkNote]

  • 1979 0525 - Letter - ACLI to NAIC (Life Insurance (C3) Cost Disclosure Task Force) - Re:  The Report of the Industry Advisory Committee on Policy Lapsation - 1979-2, NAIC Proceedings
  • In a June 13, 1978 letter to the NAIC, the ACLI opposed the 20-day "cooling-off" period option on the following ground:
    • Once a replacement sale has been consummated and the existing policy, insurer or agent have been discredited in the eyes of the policyholder, a reversal of that action will be extremely difficult, even if replacement is shown to be disadvantageous to the policyholder.125

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

  • For cost comparison purposes, the natural unit price for insurance is dollars of Premium per thousand dollars of death benefit per year—adjusted as appropriate and cash surrender values.  (p131)

--  1980 0130 - Letter - ACLI to GOV (Senator Howard Cannon (D-NV), Chairman - American Council of Life Insurance, on The FTC Staff's Responses to Criticisms of the Report on Life Insurance Cost Disclosure - (p130-136)

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

  • 125 Reprinted in Moss Subcommittee Hearings, supra n. 4, at 409.
  • In testimony before the Moss Subcommittee, Mr. Julius Vogel, Vice President and Chief Actuary of Prudential Insurance Company, testifying on behalf of the ACLI, readily admitted that the industry has taken inconsistent positions on the timing of disclosure in initial sales and replacements.
    • Mr. SHAFFER, Subcommittee counsel: My obvious question is, isn't this inconsistent with your position on timing for the model solicitation rule?
    • Julius VOGEL, ACLI, Prudential:  Yes, it is.  (p167)

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

  • “If it's a savings account, why do you pay interest on it when you borrow?” asked Blake Newton, president of the American Council of Life Insurance.
    • “Why is it extinguished when you die?”

1979 0930 - NYT - The Appeal of Life Insurance Fades, But Most Families Still Buy It, by Edwin McDowell  ---  [BonkNote]   ---  [link]

  • (p130) - 1980 0130 - Letter - ACLI to GOV (Senate) Howard Cannon (D-NV) - American Council of Life Insurance
    • DEAR SENATOR CANNON: Enclosed is a copy of the response of the American Council of Life Insurance to the comments by the Federal Trade Commission on the Council's testimony on the Commission's life insurance cost disclosure report which was issued on July 10, 1979. Sincerely, Robert Bland Smith, Jr.
      • The staff of the Federal Trade Commission has chosen to respond to eight of the criticisms of the staff report made by representatives of the life insurance business at the October 17, 1979 hearing of the Senate Committee on Commerce, Science and Transportation.
        • These responses merely repeat the erroneous ideas and conclusions that were set out at length in the FTC staff report.
      • We should like to offer a few comments pointing out what we see as flaws in the responses of the FTC staff in order to clarify some of the matters under dispute.
        • Our comments will follow the same sequence used by the FTC staff.
        • 8. The Federal Trade Commission should not be involved in the life insurance area because it has not received a sufficient number of consumer complaints.
      • Predictably, the FTC staff responds that "consumer complaints do not always provide an accurate gauge of consumer problems."

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