Barbara Lautzenheiser

  • Some of our problems, however, have been caused by regulatory bodies. 

--  Barbara J. Lautzenheiser

1981 - SOA - The Life Insurance Business -- The View of Consumerists, (rsa81v7n38) - Daniel F. Case - Moderator, Society of Actuaries - 18p

  • Barbara Lautzenheiser (Lautzenheiser and Associates) said that if the industry could have provided an illustration that was understandable without the assistance of an agent, there would be only direct marketing. p520 (562)

1994-3, NAIC

  • ... could we use some of the Society of Actuaries resources to do some educational pieces, such as a videotape?
    • I'm not sure a booklet does it.
    • But a videotape that talks about the Society of Actuaries, utilizing Society of Actuaries resources.
    • We are a research body and an education body to help educate the public on why these are not guarantees, and how they should be looking at these in terms of flexibility.
    • I'm not talking about numbers now.
    • I'm talking about perceptions and concepts regarding the nonguaranteed elements of a contract.

--  Barbara J. Lautzenheiser

1992 - SOA - Life Insurance Sales Illustrations, Society of Actuaries - 16p

  • I'll end with one caveat that is a personal anecdote.
  • Back in 1982, at the Phoenix Mutual, I helped design a graded-premium whole life contract.
  • In 1983, when it looked like unisex could pass in spite of our efforts, I bought one of those for a half a millon dollars of coverage.
  • In about 1986, when my cash flow got a little tight in my consulting practice, I went back to my life insurance contract to borrow on the cash value.
    • Much to my surprise, having even designed the contract, I had no cash value on my graded-premium whole life contract.
      • I said, "When do I have a cash value?" and they said, "In the fifth year." I said, "How much in the fifth year?" and they said, "$10,000."
      • I said, "Nothing before?" and they said, "Nothing before."
    • Now I considered suing the company for misrepresentation, but thought they'd pull me as a witness for having designed the contract.
    • The point is that even with all of my knowledge, even with all of my understanding, I really forgot what I had, and I had to go back and look at that contract to see what I really had, I don't know that we can design anything that causes people to remember, but I do think we have to move toward more and better disclosure.

--  Barbara J. Lautzenheiser

1991 - SOA - Disclosure Systems: Can an Ideal Method be Found?, Society of Actuaries - 22p

  • Barbara Lautzenheiser (Lautzenheiser & Associates) expressed concern that because of the fact that life insurance has been treated as an investment the guarantees do not reflect what will actually happen.
    • People will infer that life insurance is a bad investment and choose to put their money in another investment.
    • She pointed out that mutual funds do not have to say in big print that it is possible that the investor will not get any money back, and compared that to the requirements on illustrations.

1994-1, NAIC Proceedings