Benefits - Regulators

  • So I think that the NAIC is going to have to relook at the whole issue of life cost disclosure.
  • It is an issue that will not go away.
  • As long as the internal benefits of a policy are not reflected in the premium, people need help in measuring those benefits.
  • That is, in a nutshell, what cost disclosure systems have tried to do.  (p11)

--  Susan Mitchell

1981 0921 -  GOV (House) - Insurance Agent Commission Deregulation - [PDF-109p-GooglePlay, VIDEO-?] ->Not on govinfo.gov, Committee on Small Business - Subcommittee on General Oversight 

 

  • "future benefit illustrations"

1988-2 NAIC Proc.

  • 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

  • "Prospective" implies looking forward from the valuation date to future benefits the insurance company will provide and future premiums to be paid by the policyholder.
  • "Retrospective" implies looking back from the valuation date to benefits already provided and premiums already paid since the contract was issued.
  • Retrospective methods seem to be better suited to certain newer life insurance plans, such as universal life plans, where it is difficult to place a value on future benefits that would be provided.

1983-2, NAIC Proceedings

  • Death Benefit Patterns
    • This has become a complicated subject under the more flexible types of "non-traditional" policy designs which are appearing in greater numbers.
  • Premium Payment Patterns
    • Under non-traditional policies such as universal life and other flexible premium designs, a wide variety of premium payment patterns is available...

1986-1, NAIC Proceedings