J. Owen Stalson

  • Historians have, perhaps, been too preoccupied with mortality tables and the founding dates of companies to consider the astonishing influence that selling method, or the lack of it, has had upon the development of life insurance in every age.

1942 – Book – Marketing Life Insurance; Its History in America, by J. Owen Stalson

  • The first corporations formed in this country for insuring lives were those of the Presbyterian Ministers Fund (1759) and a similar company organized for the benefit of Episcopal ministers (1769).
    • Neither of these corporations offered insurance to the general public.
  • In the last decade of the eighteenth century many insurance companies were formed in the United States.
    • At least five were chartered to underwrite life risks, but only one, The Insurance Company of North America, appears to have accepted any.
    • There is no basis for saying that any of these early companies tried to sell life insurance.

1938 – AP – The Pioneer in American Life Insurance Marketing, by J. Owen Stalson – http://jstor.org/stable/3111126?seq=1

Insurance Company of North America

  • wikipedia.org///Insurance_Company_of_North_America
    • Insurance Company of North America (INA) is the oldest stock insurance company in the United States,[2] founded in Philadelphia in 1792. It was one of the largest American insurance companies of the 19th and 20th centuries before merging with Connecticut General Life to form CIGNA in 1982, and was acquired by global insurer ACE Limited (currently Chubb Limited)[3] in 1999.
  • The first corporations formed in this country for insuring lives were those of the Presbyterian Ministers Fund (1759) and a similar company organized for the benefit of Episcopal ministers (1769).
    • Neither of these corporations offered insurance to the general public. In the last decade of the eighteenth century many insurance companies were formed in the United States.
    • At least five were chartered to underwrite life risks, but only one, The Insurance Company of North America, appears to have accepted any.
    • There is no basis for saying that any of these early companies tried to sell life insurance.

1938 – AP – The Pioneer in American Life Insurance Marketing, by J. Owen Stalson – <WishList – jstor.org/stable/3111126>

TPA – Third Party Administrator

  • I’ve seen not very much sale, strangely enough, of permanent insurance within the third party administrator business.
    • That is a problem in a way, but it is also an opportunity for a lot of people I think, in that they haven’t done much with that. One would think with the TPAs individual agent’s background that in many cases they would be more heavily involved in individual permanent insurance, but in fact they don’t seem to be.
    • There are, however, right now, many examples of successful sales of Universal Life and telemarketing of other types of permanent coverages, generally in modest amounts. 

—  John D. Ladley

1986 – SOA – Non-Traditional Marketing, Society of Actuaries – 38p

Credit Cards

  • Credit card distribution systems
  • Association endorsed marketing
  • Direct response marketing
  • Single premium credit insurance
  • Joseph Fafian, Jr: My subject for today is credit cards in the marketing of insurance. I am going to discuss this subject from five different perspectives.
    • The topics to be covered are:
    • 1. What are some ways that credit cards have been used in the sale of life insurance? I will discuss three different ways that I have seen credit cards used successfully as part of the whole overall sales process.

1986 – SOA – Non-Traditional Marketing, Society of Actuaries – 38p

Marketing and Distribution

  • 2020 07 – SOA – Marketing and Distribution: Who Sells and Distributes, By Nick Ortner and Brendan Costello, edited by Mike Prendes, Society of Actuaries – 4p
    • GLOSSARY OF DISTRIBUTION HIERARCHY TERMS
      • Field Marketing Organization (FMO)/Independent Marketing Organization (IMO)
      • General Agent (GA), Brokerage General Agent (BGA), and Managing General Agent (MGA)
      • Agent/Producer vs Broker
      • Independent vs Career/Captive Agents
      • Wholesaler vs Retail Distributors
    • GLOSSARY OF OTHER COMMON TERMS
      • Call Center
      • Channel Conflict
      • Direct-to-Consumer (also referred to as DTC or D2C)

2020 10 – SOA – Marketing and Distribution: Compensation for Sellers and Distributors, By Nick Ortner and Brendan Costello, Society of Actuaries – 2p

Adjustable Life Insurance – Index

Leased Life Insurance

  • 1965 – SOA – Digest of Discussion of Subjects of Special Interest – Individual Life Insurance – Leased Life Insurance, tsa65v17pt2dn488 – Society of Actuaries – 11p 
  • 1965 – SOA – Digest of Discussion of Subjects of Special Interest – Individual Life Insurance – Leased Life Insurance -tsa65v17pt2dn47ab2 – Society of Actuaries – 42p

IRR – Internal Rate of Return

  • 2021 – AP – A Study of Life Internal Rate of Return, by Roenganan, Sorrawee & Misiran, Masnita & Phewchean, Nattakorn. (2021). A Study of Life Internal Rate of Return. WSEAS TRANSACTIONS ON MATHEMATICS. 20. 122-133 – [link]

Fifth Dividend

  • One Year Term Option
  • In connection with the high early cash value policies mentioned in the previous paragraphs, a new dividend option, colloquially called the fifth dividend option, sprang up, with dividends being used to purchase an amount of insurance equal to the cash value.28
    • The use of dividends to purchase term insurance is nothing new, but in the past it has failed to achieve any general popularity probably because of the rapid decline in insurance purchased with advancing age which results if the entire dividend is used to purchase the insurance.
    • Under the fifth dividend option the balance of the dividend after purchasing modest amounts of insurance in the early durations is (at least theoretically) accumulated to provide a fund from which the future larger costs can be drawn.
    • Adverse selection is eliminated by permitting the option at issue or after examination, generally only on standard risks, and providing that if the dividend in any year is not used to purchase the prescribed insurance the option will terminate.
  • The fifth dividend option was designed, at least initially, to “insure the loan,” that is, to provide enough additional insurance so that the original face amount would be received by the beneficiary even though the policy was fully loaned.
    • It is also argued that this option provides a hedge against inflation, though, for it to be at all satisfactory for such a use, the rate of inflation would have to be approximately equivalent to the ratio of the increase in cash values to the face of the policy (and in later years when the accumulations have been exhausted, there is a rapid decrease in the amount of insurance purchased).
  • 28 The future of this option on policies written in New York is extremely cloudy at the time this is written. The recently promulgated Regulation 39 requires, on the grounds of discrimination, that the option be made available “on all policies” and that the charge for the insurance “be consistent with the company’s other term insurance rates.” Undoubtedly some clarification of these terms will be forthcoming.

1959 – SOA – Some Observations on Ordinary Dividends, by Robert T. Jackson, Society of Actuaries – 48p