In the alternative he <Coleman-Prudential> suggested that the provision be reworded to say:

"The annual report shall provide notice that the policyholder may request an illustration of current and future values and benefits."

2000-3, NAIC Proceedings

• An agents’ association representative <Robert M. Nelson (NALU, NAIFA)> reported that his group was concerned about problems because agents are generally the first to hear the disappointments, confusion and bitterness created by the unrealized expectations of policyholders.
• Of paramount concern to agents is the fact that illustrations may not be supportable under current actuarial standards of practice.
• He asked the group to concentrate on the serious problems caused when illustrations of non-guaranteed elements and dividends are not supportable for even a few years into the future and tend to overstate the amount of non-guaranteed elements and dividends likely to be paid.
• The association recommended more precise definitions and stricter rules on supportability and current experience.
• ****The association also asked the NAIC to take action to sensitize policyholders to the effect of a change in interest rates, and to mandate a signed disclosure statement where the consumer acknowledges he has read the illustration and understands it.

1993-1 - NAIC Proceedings