Debatable – Page 7

Shadow Shadow Banking Shadow Insurance Recently I have noticed other disturbing signs, indicated by an increase in formation of overseas domiciled subsidiary or “Shadow Insurers” designed for use in the U.S. surplus markets. These “Shadows” of prominent U.S. insurers are popping up all over the world and are beginning to mark the escape of U.S.…

Crisis 2008 Financial Crisis Crisis in Confidence Crisis – 1990s FCIC – Financial Crisis Inquiry Commission Liability Crisis We’ve all heard a lot about the junk bond crisis. Is the next crisis going to be junk illustrations? — Judy Faucett 1991 – SOA – Illustrations, Society of Actuaries – 20p 2009 – AP – Reflections on Northern…

2008 Financial Crisis 2008 Financial Crisis – Index The Global Economic & Financial Crisis: A Timeline, by Mauro F. Guillén – 96p the92ers.com/content/confederacy-dunces Economic Stabilization Act of 2008 (P.L. 110-343): Allowed the Secretary of the Treasury to purchase and insure “troubled assets” to help promote the strength of the economy and financial system. The act established…

Private Right of Action 2004 – LR – PSLRA, SLUSA, and Defrauded Retirement Investors: Overlooked Side Effects of a Potent Legislative Medicine, by Michael J. Borden — [BonkNote] A regulator pointed out that a provision for a private cause of action is a major departure from NAIC policy, and after extensive discussion, the working group…

Is the Insurance Industry Exposed to Systemic Risk? Systemic risk afflicts all life insurance and investment firms around the world. 2009 – AIG: Is the Risk Systemic?, 26 Feb 2009 – Report – 21p <YES> The insurance industry is exposed to systemic risk. The viability of the insurance sector rests on the perception that insurers can and…

Life Insurance vs Car Insurance Michael Lovendusky <ACLI>: Life Insurance Pricing is different from property / Casualty pricing Birny Birnbaum (CEJ): <Michael Lovendusky <ACLI> is off the mark… Ludicrous …. Pricing for life insurance and property Casualty pricing is not different….Collect information, run through algorithm…. Can provide an extremely detailed Illustration at application, Data Elements…

State vs Federal Regulation McCarran-Ferguson Optional Federal Charter Now, consumers don’t care who regulates insurance. We really don’t care if it is Federal or State. But we do care if it is any good, and it isn’t good today. — Statement of J. Robert Hunter, Director of Insurance, Consumer Federation of America 2007 1030 -…

Life Insurance as an Investment Birny Birnbaum (Center for Economic Justice—CEJ) said… the current structure of the illustration presents the IUL policy as an investment. 6-836 2019-1, NAIC Proceedings The term “investment-life-insurance policy” is used here to represent policies that have a large “cash-surrender value” throughout most of the period they cover, such as limited-payment…

Confusion In my experience very smart people don’t really know what all the components mean. I mean I feel like it does lead to confusion. So, I think if you can refer to the eventual illustration and just show the cash value. — Teresa Winer (GA) 2019 0917, NAIC – LIIIWG – Life Insurance Illustrations…

Meaningful Disclosure Teresa Winer (GA) said that disclosure is helpful, but only if it is meaningful. 2019 0917 – NAIC Proceedings (Fall, 6-77) – LIIIWG – Life Insurance Illustrations Working Group …. would they know what that really means in terms of the risk to them and how it would interact with…… — Brian Brosnahan,…