David Hippen

  • When universal life was first popularized about 20 years ago, there was considerable controversy with regard to nonforfeiture compliance.
    • Was it term plus a side fund?
    • Whole life with flexible premiums?
    • Or something entirely different?

2001 – SOA – Universal Life, No-Lapse, and the Law vs. Free Markets, by David J. Hippen, Actuary at the Florida Insurance Department, frn-2001-iss45-hippen – Society of Actuaries – 5p

Douglas Doll

  • 1994 05 – SOA – Factuaries: Douglas Doll, The Actuary, Society of Actuaries – 2p
    • 1994 – Life insurance consultant at Tillinghast/Towers Perrin
  • With this product, the mechanic is “unbundled” and open.
  • But events that are now observable may be misinterpreted.
    • [Bonk: “this product” = Universal Life]

—  Douglas Doll 

1988-2, NAIC Proceedings

  • Finally, I just would like to make a small pitch for the “mystique” of whole life.
    • If we come up with a retrospective approach for nonforfeiture, then we are hastening the viewpoint that life insurance, no matter what kind is nothing more than term insurance plus a side fund.
  • I think the industry has some vested interest yet in keeping the impression that there is more to it than that.
    • It is not just term insurance plus a side fund.
  • If it is strictly term insurance plus a side fund, then we weaken our arguments for favorable tax and regulatory treatment.

—  Douglas Doll

1989 – SOA – Status Report on Standard Nonforfeiture Law Revisions, Society of Actuaries – 14p

  • 1988-2, NAIC Proceedings – (p411) 
    • Date: May 16, 1988
    • To: Dave Becker
    • From: Doug Doll
    • Subject: Fixed Premium Universal Life
    • In the traditional product no one can “see” the inner workings where mortality, interest, and expense are at work to produce the dividend scale.
      • As a result, the magnitude and incidence of dividends must be accepted by the buying public and the regulatory bodies.
      • And they are relying on the company to follow the contribution principle.
    • In fixed premium universal life the mechanic is open for inspection.
      • But events that are now observable may be misinterpreted.
  • 1998 – Book – The Fair Value of Insurance Liabilities
    • Fair valuation of life insurance company liabilities, by Douglas C. Doll, C. Phil Elam, James E. Hohmann, Jacqueline M. Keating, Douglas S. Kolsrud, Karen Olsen MacDonald et al. Pages 21-126

18 May 1994, Wed The Courier-Journal (Louisville, Kentucky) Newspapers.com

18 May 1994, Wed The Courier-Journal (Louisville, Kentucky) Newspapers.com

Michael Mateja

  • 1995 0905 – LC – Ferguson v. Crown Life and William Casteel – V14of23 – 244p  —  [BonkNote]
    • MICHAEL E. MATEJA (Continued)
      • Direct Examination (Contd.) by Mr. Becker———2740
      • Cross-Examination by Mr. Bostwick—————-2790
      • Cross-Examination (Contd.) by Mr. Bostwick——-2826
      • Redirect Examination by Mr. Becker—————-2870
  • 1998 – LC – Crown Life v. Casteel – 98-0218  —  [BonkNote]
  • 1987 – SOA – Research of the Committee on Valuation and Related Areas, rsa87v13n4b11 – Society of Actuaries – 28p
    • Reports were given by the chairmen of the following Task Forces:
      o C-I Risk – Irwin Vanderhoof
      o C-2 Risk – Dan McCarthy
      o C-3 Risk – Pete Deakins
      o Combination of Risks – Mike Mateja
  • Michael MATEJA: I’d like to make two points.
    • First, I’m going to use the words actuarial science and say I think your charge is to provide SOP with regard to the implementation of actuarial science by the members of the profession. If I’m wrong in that regard, then maybe what I have to say would not be appropriate.
      • When regulators, in their wisdom, find ways to implement public policy and they, in effect, put down something that is not actuarial science, then I don’t think it’s your job to implement it by promoting standards.
      • What I see embedded in this sales illustration regulation is nothing like actuarial science. I would tell you to steer clear of it. We have no reason to have a standard for it.
      • You have great leverage, by virtue of your position. You can say, “No, we’re not going to tell actuaries to practice in such a way because it really doesn’t make sense.” I think you need to use that leverage at appropriate times and, in effect, could influence the conduct of the regulators.

1995 – SOA – Actuarial Standards Board (ASB): Current Hot Topics, rsa95v21n4a32 – Society of Actuaries – 18p

FTC – Federal Trade Commission – Index

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Jail

  • David Rutstein – The People that are running your company may end up in jail.
  • 20 – Sahid – So, you are saying that Patrick Bet-David who is worth 500 Million dollars is going to end up jail?
    • And the same … did the partnership with Integrity Marketing, a company that is worth over 20 Billion Dollars.
    • So, what you are telling me is that these companies pretty much have Shit Lawyers and Attorneys?
    • Because if that was the case the company would have then been sued.
  • [Bonk: Business Opportunity, Earnings Claims]

2023 1006 – Family First Life Lawsuit Witnesses – PHP Agency Recruiter Interviewing Job Applicant – Scamming New Agents!  —  [BonkNote]  —  [VIDEO-YouTube-34:17]

  • 2024 0312 – David Rutstein / Gus Fox – Family First Life Agent Who Was Scammed Explains that Shawn Meaike is a Sociopath – FFL – [VIDEO-YouTube-01:50:23]
    • 8 – Jail – Shawn Meike – Elder Abuse – Churning
  • (p139) – CEPA – Crime and Lawlessness in the Market Place. Statement to National Consumer Protection Hearings of Federal Trade Commission, Washington, D.C., Thursday, November 21, 1968, By Max Weiner, Educational Director, Consumers Education And Protective Association
    • Hundreds of millions of dollars have been stolen by fly-by-night insurance companies from policyholders.
    • Uncounted hundreds of millions in unpaid claims, representing tragic and helpless victims of accidents left uncompensated, have resulted from the operations of insurance swindlers.
    • Few, if any, of the insurance swindlers have gone to jail.
      • Instead, with money siphoned off from the companies they fleeced they have entered other lucrative fields and continue to defraud and swindle.

1968 11 – FTC – National Consumer Protection Hearings, Federal Trade Commission  —  [BonkNote]  —  [PDF-398p – GooglePlay]

2015 0428 – GOV (Senate) – The State of the Insurance Industry and Insurance Regulation – Richard Shelby (R-AL)

  • The State of the Insurance Industry and Insurance Regulation, Richard Shelby (R-AL)  —  [BonkNote]
    • [PDF-56p, VIDEO-Senate] – <mp3, mp4> – T
    • Woodall, McCarty, McRaith, Mark Van Der Weide
    • NAIC – Kevin M. McCarty, Commissioner Florida Office of Insurance Regulation, On Behalf of the National Association of Insurance
      • The fundamental tenet of our U.S. system is to protect policyholders by ensuring the solvency of the insurer and its ability to pay insurance claims. Written Testimony – (p2) – 6p
    • Examining The Unique Aspects Of The Insurance Industry, The Development And Implications Of Domestic And International Capital Standards, And Evaluate The Current State Of Insurance Regulation In The United States And Abroad
    • Senate – Committee on Banking, Housing, and Urban Affairs
  • Richard Shelby (R-AL) – Chair
    • As a liability-driven business, insurance often has long-term cash flow patterns compared to shorter-term activities at banks.
      •  Consequently, current law fails to adequately account for the business model and risk profile of insurance companies, and that should concern us all.
  • Response To Written Questions of Senator Shelby from Richard Bouhan (Executive Director, National Association of Professional Surplus Lines Offices)
  •  (p355) – Q.1. Will you please explain why you believe Federal legislation is needed to streamline the regulation of surplus lines insurance? 
  • Q.2. Why should we not leave it to the NAIC to accomplish this task?
  • A.2. The simple answer is that the NAIC cannot solve the problem.
    • It neither has the history nor is it, as a trade association representing state insurance regulators, structured to do so.
    • Moreover, the NAIC has no regulatory or enforcement authority that would allow it to accomplish this task.

John Oxendine

  • (p28) – John Oxendine, NAIC – Georgia Insurance Commission
    • The problem, of course, is that some agents are not trustworthy.
      • Sometimes they sell unsuitable products.
    • Most soldiers already purchased the affordable SGLI and may not need supplemental life products.
    • These supplemental policies are often sold to soldiers as investments rather than as insurance.
    • While it is true that an insurance policy can be one component of an individual’s investment strategy, the investment portion of the policy is, in some cases, being overemphasized and/or misrepresented.
    • Some soldiers have testified that they did not even realize that they had purchased life insurance. Some also testified they thought they were opening a savings account. 

2005 1117 – GOV (Senate) – A Review of the GAO Report on the Sale of Financial Products to Military Personnel, Richard Shelby (R-AL)  —  [BonkNote]

  • 2019 0923 (aired) – Fox 5 Atlanta – I-Team: Jim Beck’s Staff Closed Criminal Case at Request of John Oxendine – [VIDEO-YouTube-05:43] 
  • 2021 (aired) – Fox 5 Atlanta – I-Team: Judge dismisses ethics charges against John Oxendine – [VIDEO-YouTube-03:30]
  • 2022 0520 (aired) – Fox 5 Atlanta – I-Team: Former insurance commissioner John Oxendine indicted by federal grand jury – [VIDEO-YouTube-04:26]

1999 0914 – GOV (House-Report) – Interstate Class Action Jurisdiction Act of 1999 – 47p

  • 1999 0914 – GOV (House-Report) – Interstate Class Action Jurisdiction Act of 1999  —  [BonkNote]  —  47p
    • The Committee on the Judiciary, to whom was referred the bill (H.R. 1875) to amend title 28, United States Code, to allow the application of the principles of Federal diversity jurisdiction to interstate class actions, having considered the same, reports favorably thereon with an amendment and recommends that the bill as amended do pass.
  • 39 – Equitable Life Assurance Company, an Iowa corporation, agreed to a $20 million settlement of two class-action lawsuits involving 130,000 persons filed in Pennsylvania and Arizona State courts. The class action alleged that Equitable misled consumers, in violation of State insurance fraud law, when trying to sell ”vanishing premium” life insurance policies in the 1980s. Equitable sold the policies when interest rates were high, informing potential customers that after a few years, once the interest generated by their premiums was sufficiently high, their premium obligations would be terminated. However, when interest rates dropped, customers ended up having to continue to pay the premium in full.49
    • 49 See David Elbert, ”Lawsuits to Cost Equitable $20 Mill,” Des Moines Register, July 19, 1997 at 12 and ”Cost of Settling Lawsuits Pulls Equitable Earnings Down,” Des Moines Register, August 6, 1997 at 10.

1996 – Report of The Multi-State Life Insurance Task Force and Multi-State Market Conduct Examination of The Prudential Insurance Company of America – 270p

  • 1996 – Report of The Multi-State Life Insurance Task Force and Multi-State Market Conduct Examination of The Prudential Insurance Company of America  —  [BonkNote]  —  270p
  • (p8) – 33 percent of the sales complaints concerned misrepresentation by agents in the course of a sale.
    • (p12) – Such complaints were not new, but due to recent media attention and other factors, have been received and handled in large numbers. 
  • (p) – There is ample evidence to suggest that many of the practices at Prudential are, or were, present at other life insurers.

Bob Corker

  • Bob Corker (R-TN)
  • 2007-2019 – US Senate
    • 2015-2019 – Chair of the Senate Foreign Relations Committee 
  • (p33) – Bob Corker (R-TN) – You know, there are very few complaints. I mean, life insurance is not what drives complaints at your State Insurance Commissioner’s officer, really, is it? It is just a small percentage, is it not?

2009 0317 – GOV (Senate) – Perspectives on Modernizing Insurance Regulation, Chris Dodd (D-CT)  —  [BonkNote]

  • (p25) – Bob Corker (R-TN) –  Well, it may not-I think this whole issue of authority is pretty incredible, and I think all of us realize that the Fed nor anyone else has the authority not only to deal with AIG but Citigroup or Bank-there is nobody.
    • I mean, I think that is an amazing thing that for some reason only hits my alarm bell, nobody else’s.
    • But there is no entity in our country that has the ability to deal with an AIG, a Citigroup, a Bank of America, anybody.
    • I find that pretty incredible. 

2009 0305 – GOV (Senate) – American International Group: Examining What Went Wrong, Government Intervention, And Implications for Future Regulation, (CSPAN) Government Intervention and Regulation of AIG, Chris Dodd (D-CT)  —  [BonkNote]