LEAP – Lifetime Economic Acceleration Process

  • In September 2012, Leap Systems, LLC became an affiliate of Penn Mutual. LEAP is a leading provider innovative financial systems for financial professionals throughout the United States and Canada.

2012 0310 – ThinkAdvisor – Leap Systems, LLC, Announces Organizational Changes – [link]

  • 2017 1112 – Economic Warrior / Barry James Dyke – Robert Castiglione, Founder of The Leap System  —  [BonkNote]  —  [VIDEO-YouTube-41:52]
  • 2020 1022 – Economic Warrior / James Dyke – Bob Castiglione – [VIDEO-YouTube-34:57]
  • 2024 0313 – Economic Acceleration – Bob Castiglione Delivery on Utility of the Death Benefit – [VIDEO-YouTube-01:13]

1980s

  • 1987 – MDRT Proceedings – MDRT 1987 Bob Castiglione – Life Insurance The Heart of Financial Consulting – [VIDEO-YouTube-54:15 – U]

1990s

2000s

  • 2004 – MDRT Proceedings – MDRT 2004 Bob Castiglione Creating A Wow Experience with Life Insurance  —  6p  —  [VIDEO-YouTube-53:30 – U]
  • 2005 – Book – Leap: Lifetime Economic Acceleration Process, by Robert Castiglione

2010s

  • 2012 0310 – ThinkAdvisor – Leap Systems, LLC, Announces Organizational Changes – [link]
  • 2013 05 –  LMR – My History with IBC, by Robert P. Murphy, PhD, Lara-Murphy Report – 17p
  • 2014 – InsuranceNewsNet – Leap Systems, LLC, Announces Organizational Changes – [link]
    • Leap Systems, LLC, an affiliate of The Penn Mutual Life Insurance Company, today announced organizational changes that will continue to position LEAP as a company committed to providing innovative insurance and financial systems for financial professionals and consumers throughout the United States and Canada.
    • Ande Frazier, CLU, LUTCF, has been named President & Chief Marketing Officer. She brings more than 20 years of LEAP marketing and training experience to her new role.
  • 2014 – LMR – Defending IBC from Bob Castiglione by Robert P. Murphy – [link]
  • 2013 05 –  LMR – My History with IBC, by Robert P. Murphy, PhD, Lara-Murphy Report – 17p
  • 2011 0306 – What happened to the LEAP thread – Post by mephistophles » Sun Mar 06, 2011 11:58 pm – bogleheads.org/forum/viewtopic.php?t=70217
    • I responded to Robert Castiglione, founder of the LEAP system when he stated that LEAP had nothing to do with life insurance.
    • I posted some comments and a link showing specifically that Mr. Castiglione presented his LEAP system to the Million Dollar Round Table annual meeting of top insurance agents in the world a few years back.
    • That thread seems to have disappeared. It ceased to exist. It vanished. I can only assume some mechanical glitch deleted that thread. If I broke a boglehead posting rule, I was not aware of it. No moderator has contacted me.
    • Bogleheads need to know that the LEAP system is used by life insurance agents to sell large amounts of whole life insurance.
    • So, what happened?
    • by Mel Lindauer » Mon Mar 07, 2011 9:45 pm
      • When a thread disappears, you should know that it was because of a moderator action. Openly questioning Moderator actions is a violation of forum policy. In the future, use the PM system to question things like this.     
      • That thread appeared to be spam or a commercial for the program. The thread was started by a new first-time poster and then the CEO of that program just happened to show up and try to tell forum members about the program.
      • It was considered to be spam/commercial so it was removed. This thread is now locked.
  • 2016 1028 – insurance-forums.com/community/threads/leap-and-cheaper-alternatives.85108/
    • p1 – TomZack – For those who are familiar with the (expensive) LEAP software program….. Are there mini versions or less expensive or alternative options in the marketplace? The larger mutual Life companies have LEAP or something like it for their offices and agents.
    • p2 – PrivClientSG – Well, since this was revitalized just a few months ago, I will chime in, LOL. While I’ve spent a fortune on software, I can’t speak to “financial planning” or that marketplace, because my experience with that software is limited, and I am not in that marketplace.
      • Bob Castiglione, the founder of LEAP, whether you like him or not, was really the first to bring together and formalize the life insurance concepts that LEAP was all about. The living benefits of life insurance, the death benefit as an asset, a capitalized asset, etc. — all of it was inside of LEAP. Was it a system? Or was it a “sales process” — I’ll let you decide and everyone else to argue, LOL. Sure, there were others who spoke about these concepts, but Bob really formalized it and brought it into a system. While I’ve seen software systems that portrayed these concepts, most of them were either market-specific (like InsMark in the estate planning marketplace for example), however, LEAP was very early on and covered all of it for the masses. If you read the Economics of Life Insurance, by Solomon Huebner, which was updated and re-published by Bob Castiglione, you can see all of these concepts. I took LEAP — in the mid to late 90’s, kept my license active, did all the updates, symposiums, etc., but I did not adopt it as it was meant to. I adapted it to my marketplace and used many of the concepts. I also bought the software when it came out and was licensed with it until about 7 years ago or so.
      • In the end, I can’t speak to alternatives as I don’t directly and intentionally look at them. However, I do think there is some great software out there in certain marketplaces, with certain uses, applicability, etc.
    • p2- Lloyds of Lubbock – Try Circle of Wealth. It is like leap light.
    • p2 – DHK – Two completely different ‘ultimate’ planning objectives.
      • LEAP uses the “permission slip spend-down” concept (minimum pay permanent policy to offset other assets) while Circle of Wealth advocates more of the max-funded cash value life insurance policy approach.
      • I went into more detail with Tom Love (who learned from Don Blanton and evolved from COW) and John Ocweija (who was a LEAP trainer and now a co-founder of Wealth Building Cornerstones):
        • [Bonk: 2022 0113 – The Financial Advocacy Podcast / David Kinder – PLIAD Group Expert Series: Selling Systems and Learning the Economics of Life Insurance Contracts – [VIDEO-YouTube-01:52:46]]
        • [Bonk: Wealth Building Cornerstones – wbcornerstones.com/]
          • Wade Pfau – wbcornerstones.com/dr-pfau/  –  We are extremely excited to announce that Dr. Wade Pfau CFA, RICP® has joined Wealth Building Cornerstones™ as our Chief Research Fellow. Dr. Pfau has his BA and BS from the University of Iowa, MA and PhD from Princeton University.
          • Dr. Pfau is a Professor of Retirement Income and the Program Director for the RICP® designation at The American College®.
          • Dr. Pfau has written two white papers on WBC and the strategies within. He has also recently released his book, “Safety-First Retirement Planning”, that references WBC. No other system has this level of academic backing and support.
  • 2008 – Book – Killing Sacred Cows, by Garrett Gunderson
    • p30 - Robert Castiglione, the founder of the LEAP (Lifetime Economic Acceleration Process) system of financial engineering, teaches that financial institutions operate under four rules:
      • 1. Financial institutions want our money.
      • 2. They want it on a regular, systematic basis (preferably through automatic withdrawal). 
      • 3. Once they have our money, they want to hold on to it for as long as possible (hence early withdrawal restrictions). 
      • 4. If they have to give it back, they want to give back as little as possible.
      • Does this make the business practices of financial institutions unethical? No. The point isn’t to criticize them for operating this way, but to clarify that their operations are based on their own interests-which often do not coincide with ours. The fallacies of the accumulation theory are exposed when we understand what the financial institutions do with the money that we give them-
    • Self-insurance really means no insurance.
  • In the Matter of Department of Enforcement vs. Daniel D. Manoff, Poolesville, Maryland 

Investment Oriented Life Insurance Products

  • 2011 – LR – Combating the Teleological Drift of Life Insurance Solvency Regulation: The Case for a Meta-Risk Management Approach to Principles-Based Reserving, by Robert Weber – 82p
    • 2. The Product Shift: From Traditional Whole Life to Investment-Oriented Capital Accumulation Products & Annuities  ….. 68
      • (a) Life Insurance Products ….. 69
  • 1988 0315 – GOV (House) – Investment Uses of Life Insurance
    • [PDF-257p-GooglePlay,  VIDEO-?] -> Not on govinfo.gov
    • ACLI – Richard S.Schweiker
    • Andrew D. Pike
    • DOTT – Dennis E. Ross, Deputy Assistant Secretary for Tax Policy, U.S. Department of the Treasury
    • GAO – Testimony – Taxation of Single Premium Life Insurance – 15p
    • House – Committee on Ways and Means – Subcommittee on Select Revenue Measures 
  • 1988 0325 – GOV (Senate) – Tax Treatment of Single-Premium Life Insurance, (CSPAN) Single Premium Life Insurance, Max Baucus, (D-MT)  —  [BonkNote]
    • 1988 0315 – GAO – Testimony – Taxation of Single Premium Life Insurance – 15p
  • 1989 Dec / Jan – AICPA – The Planner – 9p
    • Investment-Oriented Life Insurance Products
    • To discourage the use of life insurance as a tax shelter, the Act provides for the taxation of certain distributions from single-premium and other investment-oriented life insurance contracts.
    • Policies subject to the new rules are those meeting the definition of modified endowment contracts in new I.R.C. Section 7702A or policies received in exchange for modified endowment contracts. Modified endowment contracts are policies entered into after June 20, 1988, that do not meet the 7-pay test. Under that test, the accumulated amount paid under the contract at any time during the first seven years must be no more than the sum of net level premiums that would be paid if the contract provided for paid-up future benefits after payment of seven level annual premiums
  • 1990 01 – GAO – Tax Treatment of Life Insurance and Annuity Accrued Interest – Report to the Chairman, Committee of Finance, U.S. Senate, and the Chairman, Committee on Ways and Means, House of Representatives, Government Accountability Office – 56p 
  • 1994 – AICPA – core.ac.uk/download/pdf/288030654.pdf
  • 2008 – Book – Handbook of Finance, by Frank J. Jones
    • Investment-Oriented Life Insurance – Volume I. Financial Markets and Instruments – 6. Investment Companies, ETFs, and Life Insurance Products
  • 2010 – LIMRA / Milliman – Emerging Risks in the Marketing and Distribution of Life Insurance and Annuities – 44p
    • (p20) – For some consumers, a basic whole life insurance product looks pretty good right now, compared with other more investment-oriented life insurance products. LIMRA’s sales tracking studies show that whole life and term insurance fared much better during the crisis than universal and variable life products (See Figure 6.2). A focus on traditional guaranteed products could be an effective strategy in the current environment.
  • 2015 01 – OCC – Retail Nondeposit Investment Products, Version 1.0, Office of the Comptroller – 171p
    • (p38) – A growing trend in the brokerage industry involves the “dual hatting” of registered representatives as RIA employees. These sales representatives provide investment advisory services to retail clients in tandem with brokerage services.
    • A bank’s arrangement for the provision of RNDIP sales activities may also engage insurance agents for the offering of fixed rate annuities and investment oriented life insurance products. A bank’s initial selection and ongoing due diligence processes should comprehensively cover all the affiliated and unaffiliated third parties engaged in the RNDIP sales program.
  • joinwai.com/seminar.html
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    • Paine Webber – The Alternative Plan: How to Create Tax-advantaged Retirement Income.
      • The Paine Webber – David Macchia Retirement Income Seminar School

Kentucky Central Life

19 Jan 1986, Sun The Roanoke Times (Roanoke, Virginia) Newspapers.com

01 May 1988, Sun The Daily Herald (Provo, Utah) Newspapers.com

  • 1996 0430 – Los Angeles Times – Pressure Mounts to Curb Insurance Industry Guard, By Scot J. Paltrow – [link]
    • Hunter and others say the Kentucky Central episode stands as a textbook example of the risk of leaving regulation to a company’s home state.
    • Based in Lexington, Kentucky Central was among the nation’s biggest sellers of universal life policies.
    • In the late 1980s, it began investing heavily in questionable real estate deals. As the value of those investments dropped, Kentucky Central’s reserves for paying customers’ claims dwindled.
    • As the problems grew, Kentucky’s insurance department did nothing to stop the company from selling new policies.
    • The Louisville Courier-Journal unearthed evidence that when Kentucky Central started to get into trouble, it went to great lengths to court state officials. Court records show that weeks before Gov. Wallace Wilkinson’s inauguration in 1988, Kentucky Central paid $12.6 million to buy a money-losing hotel from him in the state capital. The price included a $120,000-a-year “consulting fee” payable throughout his term in office.
    • (The company’s liquidator is suing Wilkinson to try to get the money back. A Wilkinson spokesman said the governor never tried to influence state insurance regulators.)
    • In 1992, the NAIC’s newly beefed-up computer system began kicking out warnings. As Kentucky Central’s problems worsened, one state after another, including California, suspended the company’s license to sell policies.
    • Finally, in late May 1993, the Kentucky Insurance Department banned the company from writing new policies and put it into liquidation.
    • A lawyer for Kentucky Central’s liquidator said the company then had on hand $141 million less than it needed to cover potential claims. The liquidator estimated, however, that once all assets are disposed of, Kentucky Central’s customers will have suffered no permanent loss.

Federal Crime Insurance Program

1970s

  • 1977 – govinfo.gov/content/pkg/FR-1977-10-06/pdf/FR-1977-10-06.pdf
    • FEDERAL CRIME INSURANCE PROGRAM
      • HUD/FIA proposes a method of compensating property and life insurance agents and brokers with a one time finder’s fee and provide for the designation of certain nonprofit community corporations and organizations as eligible for a finder’s fee; comments by 11-4-77………. 54432

1980s

  • 1980 – Federal Crime Insurance Program – Questions and Answers  —  [link] — 7p
    • A question and answer format is used to provide information about the Federal Crime Insurance Program, through which homeowners, tenants, and business owners can obtain federally subsidized crime insurance in areas lacking available or affordable insurance through the voluntary market.
    • Abstract -Federal Crime Insurance insures against financial losses from burglary and robbery. The program began in 1971 and now makes crime insurance available in 25 States, the District of Columbia, Puerto Rico, and the Virgin Islands. More than 85,000 policies are in force.
  • 1982 – GAO – The Federal Crime Insurance Program: An Overview – CED-82-68  —  [link]  —  22p
  • 1983 01 – FEMA – Federal Crime Insurance Program: Agent Manual – [PDF-214p-GooglePlay]
  • 1989 0628 – GOV (House) – Federal Crime Insurance Program
    • [PDF-441p-GooglePlay]
    • House – Committee on Banking, Finance, and Urban Affairs – Subcommittee on Policy Research and Insurance

Risk-Based Capital (RBC) Investment Risk and Evaluation Working Group - (E) - NAIC

  • 2024 0412 - NAIC - Risk-Based Capital (RBC) Investment Risk and Evaluation (E) Working Group
  • Lopez, Amy  11:00 AM - 1:00 PM Friday, April 12, 2024 (UTC-05:00) Central Time (US & Canada)
  • Julie Gann - Recorded
  • RBC -
  • Oliver Wyman Study
  • Bridgeway
  • IMF - Bank vs Insurance  - Reserves
  • Residual Tranche, Common Stock, Blunt Instrument,
  • Joe Engelhard
  • Liquidity management group
  • Cliff
  • ABS
  • Cpace loace - ?
  • Commercial Properties - Loans - Securitization
  • Iowa - Kevin Clark - We have asked for Information for the last year, haven't received any / much
  • ACLI - Mariana Gomez
  • AAA - Steve Smith - 2023 Summer National Meeting - Flow Chart - Use existing C-1 factor,
  • Bill Carmello - New York - Why are  ------------ as Admitted Assets -
  • Wanchin Chou - Connecticut
  • Fred Andersen - Timely regulation is warranted - exponential growth -
  • Vincent Tsang -
  • Judi French - supports 1 year implementation delay - Work of AAA - What will they say at the
  • Texas - Cassie Brown - Supports 1 year delay -
  • Judi French - Personal Attacks on Philip Barlowe - her people attacked
  • Roy Eft - Indiana
  • Dan Bumpus - Senior Counsel of Virginia - Doesn't support Delay
  • Doug Ommen - Iowa - On the fence - Concerned about lack of deliverables and a timeframe for it.  Suggests giving another 30 days of comments
  • Wanchin Chou - Agrees with Doug Omme
  • VOTE:
    • Ca - no
    • Ct - no
    • Fl - no
    • IL - no
    • IN - yes
    • IA - Abstain
    • MN - NO
    • MO - no
    • NE - No
    • NH - yes
    • NY - no
    • OH - Yes
    • TX - yes
    • VA - NO
    • WA - NO
    • WI - NO
    • 12-NO  /  5-Yes
    • Linda Lankowski: I came up with 4 nos, 11 yesses, 1 abstain
    • from lneuhaus to everyone:  thanks - my tally as well
    • Comments - June 30 - deadline

1994 0308 – NYT – Regulators Seek Limits on Insurer Sales Pitches, by Michael Quint

  • 1994 0308 – NYT – Regulators Seek Limits on Insurer Sales Pitches, by Michael Quint  —  [BonkNote]  —  [link]
    • NAIC, Illustrations, NALU
  • State insurance regulators are moving closer to sharply limiting how sales agents may describe the future benefits of life insurance policies, despite strong objections from insurance companies and agents.
  • The rule is intended to curb the widespread use by agents of computer printouts of insurance policy benefits that exaggerate how the policy’s value grows as the company pays dividends to the holder. When interest rates declined in the last five years, many projections made in earlier years proved to be far too optimistic.
  • The insurance commissioners are not expected to recommend the proposal as a law that states should pass until June.
  • But for now, Mr. Lyons said, “the public’s and the politicians’ perceptions of sales abuses have been so raised that people are ready to accept more radical approaches.”
  • Insurance companies have, however, persuaded regulators to change some parts of the proposed rules. One idea, to give consumers the right to sue insurance companies about misleading sales tactics, has been deleted.
  • [NALU – NAIFA] – William N. Albus, senior general counsel for the National Association of Life Underwriters, which represents life insurance sales agents, said illustrations of future benefits “are essential to explaining how a policy works.”
    • He suggested that agents should be allowed to project current dividends into the future and include an example of how a policy would look if its dividends were reduced by one percentage point.

2022 0603 - Retirement Income Journal - NAIC Reassures Congress on Private Equity-Led Insurers, By Kerry Pechter

2022 0603 - Retirement Income Journal - NAIC Reassures Congress on Private Equity-Led Insurers, By Kerry Pechter  ---  [BonkNote]  ---  [link]

  • In the 14 years since the Great Financial Crisis, there's been a surge of capital from powerful investment companies like Blackstone, Apollo, and KKR into the annuity business-all eager to manage the tens of billions of dollars in Americans' savings that life/annuity companies hold.
  • News of those concerns recently reached the Senate Banking, Housing and Urban Affairs Committee, which Brown chairs.
    • In March, he sent letters to the NAIC and the Federal Insurance Office asking to be briefed on the matter. The NAIC's response arrived on May 31, the deadline requested by Brown.
  • "State insurance regulators are fully capable of assessing and managing the risks of these insurers, and there is nothing PE firms add to the playing field that changes this fact.
    • It should provide you and the public comfort to know the state insurance regulatory system has already been working on many of the concerns that you and others have highlighted, and we possess the tools and resources to address these issues," the letter said.
    • NAIC CEO Michael F. Consedine, president Dean L. Cameron of Idaho and three NAIC officials signed the letter.
      • It focuses on life/annuity company solvency as the core issue.
  • The risky assets include collateralized loan obligations (CLOs), which resemble the collateralized debt obligations (CDOs) at the center of the 2008 financial crisis.
  • But the NAIC sees no cause for alarm.
    • "However, while the relative size of this asset class for the sector has been growing, it represents only 2.6% of total cash and invested assets at year-end 2020, and most of the investments held by the industry are of a higher quality.
    • The NAIC has performed multi-scenario stress tests on industry CLO portfolios and closely monitors their performance."
  • But some followers of these matters were rankled by what they perceived as the letter's "nothing to see here" tone.
    • "The response is certainly no surprise," said Tom Gober, a Virginia-based forensic accountant who has documented the tens of billions of dollars of annuity liabilities that a handful of PE-led annuity issuers have reinsured offshore, often with affiliated reinsurers.
      • "The NAIC's leaders apparently huddled around and threw a bunch of points at Brown that, in a vacuum, sound fine.
        • But when you are familiar with the details, the letter is mainly fluff, and grossly inadequate.

TNEC – Temporary National Economic Committee

  • 1938-1941 – GOV (Senate) – TNEC – Temporary National Economic Committee, Joseph C. O’Mahoney (D-WY)  —  [BonkNote]
  • 1941 – GOV (Senate) – TNEC – Final Report and Recommendations of the Temporary National Economic Committee, Investigation of Concentration of Economic Power – 464p
    • (p269) – Life insurance funds are not venture capital; they are seeking safe, long-term investments, preferably the bonds of well-established enterprises or ….
  • Dr. Dewey Anderson, executive secretary of the Temporary National Economic Committee