Debatable
Need to Take a Broader Look at How All Products are Explained to Consumers
….need to take a closer look at how all products are explained to consumers. Mr. Schwartzer reminded the Working Group that the Life Insurance Illustration Issues (A) Working Group came out of concerns raised when the Indexed Universal Life (IUL) Illustrations (A) Subgroup under the Life Actuarial (A) Task Force was working on guidance for IUL policy…
Read MorePolicy-Taxonomy-How Do You Think About Life Insurance Policies
Policy Taxonomy <Bonk: How do you think about Life Insurance Policies? Another way? Choice A Choice B Choice C
Read MorePlan of Insurance
Plan of Insurance “Plan of Insurance” vs Specific Policy [Plan of Insurance] 2019 0903 – 2019-3, NAIC Life Insurance Illustration Issues (A) Working Group (LIIIWG) – Conference Call Michael Lovendusky, ACLI … said assisting consumers to compare products is outside the scope of the Working Group’s charge, and it would limit innovation and harm consumers.…
Read MoreQ: How Can Universal Life Insurance Be Classified? Permanent / Whole / Term / Other
Q: How Can Universal Life be Classified? Permanent / Whole / Cash Value / Term / Other Why is Universal Life called Permanent or Whole Life? Maybe Universal Life Shouldn’t be Called Permanent or Whole Life How Else Could Universal Life Be Explained? NAIC Drafting Note: Although highly flexible, Universal Life insurance is generally considered…
Read MoreConfusing to People
Confusing If we are going to have a group of consumers of our products who are satisfied with what they get, we have to meet their expectations. Obviously, there are two adjustment points whereby that can be accomplished. One is that you can change the outcome to match the expectations. The other is to change…
Read MoreFee for Services / Consulting
Fee for Services / Consulting Jesse included in his comments an indication that the industry would trend towards levelized commissions and perhaps a fee for the extra service performed in the first year. Didn’t we see that there was an opportunity for the industry to move towards an extra fee with the Universal Life product?…
Read MoreUniversal Life as Term
Universal Life as Term Insurance Universal Life: The policy can also be structured to operate like term insurance. California – Life Insurance Guide (Revised March 2018) – insurance.ca.gov/01-consumers/105-type/95-guides/07-life/life-ins-guide.cfm A few companies have introduced a product known as Universal or Total Life. (p70) 1982 – Book – Life Insurance, by Huebner and Black [Bonk: This passage was in…
Read MoreFocus Groups
Focus Groups / Consumer Testing Consumer Disclosure Issues Working Group of the Product Development (A) Task Force – NAIC Focus Groups – NAIC – 2000s We hear a lot about, “we did some market research and we found that this percent of our policyholders didn’t know what it was buying.” — Justin N. Hornburg 1995 -…
Read MorePremium Due Date
Premium Due Date …this was done because (1) the concept of a “premium due date” was thought to be inapposite to flexible premium policies. 1983-1, NAIC proceedings def. inapposite: out of place; inappropriate [Lawsuits] 2018 – LC – Elhouty v Lincoln Benefit, United States Court of Appeals, Ninth Circuit, Google Scholar 2010 – LC -…
Read MoreLanguage
Language Semantics Words and Concepts Insurance policies may be balm for the afflicted but they are murder on the English language. 1976 0811 – NYT – New Policy Arises In Insurance Field Readable Language, By Israel Shenker – [link] We cannot play word games with policyholder money. (p74) — Karl L. Rubenstein, Special Deputy Insurance Commissioner, State…
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