Benefits

  • The main concern was that an unsophisticated buyer purchased a policy and did not know what the coverages, benefits and limitations were.

1988 0603 - Universal & Other New Plans (A) Task Force - NAIC - Attachment Two

1988-2, NAIC Proc.

  • Product designs can be complex, with benefits contingent on a range of potential risks that may vary over time, as well as with certain guarantees made by the insurer.

2009 1124 - Letter - AAA to GOV (House) Barney Frank (D-MA) / Spencer Bachus (R-AL) - Financial Regulatory Reform Task Force of the American Academy of Actuaries - 3p

  • "benefit charges" - Universal Life Model Regulation (MDL-585)
  • Chalke -  Benefit Reserves,  Benefit Generating Account (BGA), Benefit Generating Function (BGF),
  • Current assumptions are critical to interest sensitive products such as Universal Life.
    • When interest rates are high, benefit projections (such as cash value) are also high.
    • When interest rates are low, these projections are not as attractive.

dfs.ny.gov/consumers/life_insurance/types_of_policies

NAIC Recent Working Groups
-Cude LIBGWG?  Markup - What does Benefit mean?
-Life Insurance Buyer's Guide.... Do your Premiums or Benefits change?