Law – Page 6 – [BonkNote]

Bespeaks Caution Doctrine Judge Pauley held that this disclosure was inadequate: [W]arnings of specific risks like those in the ARM Prospectus do not shelter defendants from liability if they fail to disclose hard facts critical to appreciating the magnitude of the risks described…. As aptly put by Judge Pollack in the context of the bespeaks…

Supreme Court 1994 – NationsBank v VALIC – [link] QUESTION PRESENTED – Whether federal law permits national banks, whereever located, to act as agents in the sale of annuities. supremecourt.gov/opinions/boundvolumes/525bv.pdf (p1129) – No. 98–2. Metropolitan Life Insurance Co. v. Sabo.- C. A. 3d Cir. Motion of American Council of Life Insurance for leave to file…

Jury Finally, these standards are difficult for juries to follow. It is difficult for a jury to understand an instruction from a judge that tells them not to assume, just because the future turned out different from the way the actuary projected, that a discrepancy meant the actuary was wrong. Juries have a hard time…

Class Action Settlements Walker v Life Insurance Company of the Southwest Prudential Metlife As I said earlier, the cost to the company is different from the value or benefit given to the policyholder, in which case you’re putting values in a policy or selling a new policy. — Allan Horwich 1999 – SOA – The…

Contract Law (p392-393) – Senator Orrin Hatch (R-UT) – ….again I come back to my original statement. Why is State contract law an insufficient remedy? The answer to that, in my opinion, is it is a sufficient remedy. 1992 0428 and 0505 – GOV (Senate) – Insurance Guaranty Funds and the Involuntary Transfer of Insurance Policies,…

Material It’s amazing what plaintiffs’ lawyers deem to be material for purposes of the sale. Was it material that an agent received 95% of the first year’s premium? Was it material that the agent could have sold you essentially the same policy, particularly in a universal life scenario, and received only 40%? Those are things…

Judges Judges – Walker v LSW Premiums, Costs and Benefits – Judges — Mr. Anderson – (p261) 1919 – The Record, American Institute of Actuaries – Individual Reserves in Life Insurance – <Educate Judges> – [PDF- 451p-GooglePlay] Johnston & Johnston v Conseco first principles Father said never to purchase UL California – used to have …

Fair Consumer Outcomes GFIA – Global Federation of Insurance Associations: In addition, GFIA is concerned that the meaning of “fair treatment of consumers” may be considered different from, or in addition to, legally prescribed standards. Companies may exceed those standards voluntarily, but supervisors should define “fair treatment” solely in terms of the legally established standards…

Twisting Churning Replacements We have all heard some talk about twisting, and it has strong negative connotations. Universal Life, mainly because of its premium flexibility, has changed that. I recently heard one of our marketing people refer to replacement of old traditional permanent policies with Universal Life. He called it “The Enlightened Liberation of Assets”.…

Defamation 1964 – LC – New York Times Company v. Sullivan oyez.org/cases/1963/39 Defamation, Civil Rights, [Bonk: Sounds like Crowd Funding] 2010 0911 – New York Times – The Loneliest Analyst – [link] BankAtlantic accused Richard Bove, a bank analyst, of defamation after he wrote a critical report. He received little support from his peers in…