Debatable
I didn’t know
I Didn’t know Barney Frank (Congressman-Massachusetts): This is a very important hearing because it will begin the public discussion of the extraordinary powers granted to the Federal Reserve by a statute passed in the depths of the depression 60—77 years ago, which had not been used very much. As the Chairman of the Federal Reserve…
Read MoreQ: How Does This System Work?
Q: How Does This System Work? We believe it is very important for the subcommittee, and other committees in Congress with jurisdiction over insurance, to have a sound understanding of how our industry operates….. (p26) — Gary Hughes (ACLI) 2011 0728 – GOV (House) – Insurance Oversight: Policy Implications for U.S. Consumers, Businesses and Jobs…
Read MoreFailures
Failures What companies are we talking about when we say companies on the edge? So that we’ll all be on the same plane, I’ve grouped some of the more well-known companies as follows: APPROACHING THE EDGE: Fidelity Mutual?, Mutual of New York?, and Travelers? AT THE EDGE: First Capital, Monarch Life, and Mutual Benefit. OVER…
Read MoreTBTF – Too Big to Fail
Too Big to Fail SIFIs – Systemically Important Financial Institutions (p22) – Senator Richard SHELBY (R-AL). A threshold question comes to me: What constitutes ‘‘too big to fail’’? What constitutes that? Senator SHELBY. How do you define that? Sheila BAIR – FDIC. It is difficult to define. I think it is market perception as much as…
Read MoreBait and Switch
Bait and Switch Policies that credit higher interest rates in early years and lower rates in later years came in for criticism. Some characterized such policies as “bait and switch” and thought they should be restricted by regulation or by actuarial standards of practice. (p4) 1993 07 – SOA – ASB Mulls New Standards, The Actuarial Update, Gary…
Read MoreQ: What did I Buy?
What Did I Buy? 2003 0313 – A survey last year by the National Association of Insurance Commissioners found that only 28 percent of people with insurance — life, auto, home, health or disability — really understood the details of their coverage. The Washington Post – [LINK] Senator, I understand that this is a burden,…
Read MoreQ: What Life Insurance Products Need More Regulation Than Others?
Do Some Life Insurance Products Need More Regulation Than Others? 2016 0403 – LIIIWG CC, NAIC Proceedings <Mr. Lovendusky – ACLI> said the ACLI work group thinks that most confusion for consumers involves complex products like universal life, and not Simple products like term life. He said consumers are mostly confused about options, guarantees and…
Read MoreQ: Does a Term policy have Cash Value?
Q: Does a Term Policy Have Cash Value? Despite the fact that there are cash values in the thirty-year term contract, from a consumer’s viewpoint it has no savings element. — Paul Overberg 1973 – SOA – Price Disclosure and Cost Comparison, Society of Actuaries – 186p Cash Value vs Savings vs Reserves
Read MoreQ: Who Ultimately Pays?
Q: Who Ultimately Pays? Q: Guaranty Fund – Who Pays? Lawsuits 1995 1113 – Senate Agenda – [VIDEO-CSPAN] Harry Hohn of the American Council of Life Insurance, talked about goals for insurance companies. They want to limit punitive damage awards for all classes of defendants. The cost of these outrageous awards are always passed onto…
Read MoreUniversal Life is Easy to Understand
Universal Life is Easy to Understand …. I still feel conceptually that Universal Life is: much easier to explain, it is much easier for the consumer to understand, and I believe it will prove to be much easier to administer if for no other reason than you do not have to reissue every time there…
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