Companies Changing Systems It isn’t the paper. But it is costly to change systems. We already have a computer system now that does these things for us. — Vogel 1979 – GOV – Life Insurance Marketing and Cost Disclosure Hearing 819p (417/413) – Moss 1985 – GOV – Tax Reform – Beck recent NAIC -…

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….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…

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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.…

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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…

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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?…

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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…

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Focus Groups / Consumer Testing Consumer Disclosure Issues Working Group of the Product Development (A) Task Force – NAIC Focus Groups – NAIC – 2000s A great deal of the confusion seems to stem from a lack of understanding of how cash value insurance products work and a lack of understanding of insurance terminology. Also,…

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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 -…

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