Bonk – Page 8 – [BonkNote]

Concepts It is these concepts or the uses of the products and not the illustrations that are the difficulties here. — George Coleman, Prudential, ACLI, TRG-Technical Resource Group for the NAIC (Industry Advisory Group – Illustrations) 1994 – SOA – Problems and Solutions for Product Illustrations, Society of Actuaries – 28p We are a research…

Memory About this same time the baby boom generation hit the insurance industry, both in the ranks of agents and actuaries, bringing with it a lack of any memory of harder times. — William C. Koenig – [Northwestern Mutual] 1991 – SOA – Disclosure Systems: Can an Ideal Method be Found?, Society of Actuaries -…

Problem – Interest Rate Assumptions We believe current illustrated rates are much higher than what is reasonably expected over the course of the policy and may lead to consumer disappointment, which could negatively impact the entire industry. — Metropolitan Life Insurance Company, New York Life Insurance Company and Northwestern Mutual Life Insurance Company 2014 0812…

Bonk – Kinds of Policies Perm or Term The … company is to determine for itself which of its plans are to be treated as term insurance and which as permanent. The original instructions gave as a suggested definition of term insurance “that it is any policy with a premium rate less than 90% of…

Bonk – Illustrations It is probably true that most of the information needed is already in illustrations but doesn’t get to the consumer because of their limited attention span or because of how the information is presented. Though it is usually not stated so simply, in the area of llustrations, format not content is the…

P1P2 – Legal Case – Maloof v John Hancock The Maloofs <Policyowner> subsequently received a notice from John Hancock dated February 13, 2007, notifying them that an additional premium paymentA of $5,265 was required by April 15, 2007, in order to continueB the 1992 universal-life policy until July 13, 2007; otherwise, the notice informed them,…

P1P2 – NAIC Commissioner Willis said the trouble with disclosing that the premium (P1-A) might at some point “resume” is that the premium (P2-B) never stopped. It is misleading to make a consumer think the premium (P1-C) is not being paid. 1994-3, NAIC Proceedings Bonk P1 E1 SIV i CIV P2 E2 DB-A DB-CP…

P1P2 – NAIC – Life Insurance Buyer’s Guide Even if there is enough in your account (SIV-A) to pay the premiums (P2-B), continuing to pay premiums (P1-C) yourself means that you build up more cash value (SIV-D) . 2007 – NAIC Life Insurance Buyer’s Guide – 10p Policy Mechanics / Works P1 E1 SIV i…

P1P2 – Actuarial Policy Mechanics / Cash flow 1873 – Book – Politics and Mysteries of Life Insurance, Elizur Wright – 265p – [GooglePlay-link] (p12) – (SIV – “Self Insurance Value”) – Consequently, the insurance done by …the company is … 972.34, and the balance, $27.66, is the self-insurance, reserve, or “value of the policy,”…

P1P2 – Grid Bonk P1 E1 SIV i CIV P2 E2 DB-A DB-CP Notes: A) Universal Life Policyholder Determines Company Calculation Company Determines Company Determines Policy Mechanics Policy Mechanics Company Calculation Policyholder Determines Policy Mechanics Generic Premium Cost Guaranteed Maturity Premium (GMP) Guideline Level Premium Planned…