Performance

Policy Performance ….provide illustrations based on different assumptions. This would serve to demonstrate to the consumer the effect on future benefits of changes in assumptions. STATEMENT ON BEHALF OF THE AMERICAN COUNCIL OF LIFE INSURANCE <ACLI> TO THE NAIC MARKET CONDUCT SURVEILLANCE (EX3) TASK FORCE, June 13, 1988 1988-2, NAIC Proceedings – Walker v LSW -…

Historical Performance NAIC – IULISG – IUL Illustration Subgroup Some have suggested that historical experience should replace current scale as the basis for describing how the not guaranteed elements of the policy can operate. Substitution of historical performance for current scale would not solve many of the problems related to sales illustrations. Since it is…

Off-Track / On-Track In essence, the model regulation assumes that at issue, all universal life policies are permanent plans. [Bonk: model regulation = ULMR – Universal Life Model Regulation] The r-ratio is meant to measure the extent to which the policy is “on track” as a permanent plan. 2018 – Book – Statutory Valuation of Individual…

R-Ratio / R-Factor In essence, the model regulation <Universal Life Model Regulation> assumes that at issue, all universal life policies are permanent plans. The r-ratio is meant to measure the extent to which the policy is “on track” as a permanent plan. Statutory Valuation of Individual Life and Annuity Contracts | 5th Edition, Claire, Lombardi…

Policy Overview / Policy Summary / Cover page / Narrative Summary Policy Overview Ideas [George Coleman]… said that the NAIC had formed a resource group last November to assist and recommend changes. The resource group recommended a cover page to the illustration to include essential information about the illustrated policy. — George Coleman, Prudential, ACLI,…

Performance Benefits Coverage Period Historical Performance Policy Performance, Variability, UL Description Results Outcomes Cost – 2000 – AP – The Nature and Causes of Variation in Insurance Policy Yields: Whole Life and Universal Life, Journal of Insurance Issues, 2000, 23, 1, pp. 30–47, by James M. Carson and Mark D. Forster – 18p The actual versus…

Illustrations as Roadmaps This was an optional idea that we called “Illustrations As Road Maps.” The concept is that instead of letting the actual performance of a Universal Life policy diverge over time further and further from what was originally illustrated, you could send policyholders a notice each year on the anniversary, if the results are below…

Policy Performance

Historical Performance

On Track – Off Track

R Ratio

Policy Overview / Cover page / Narrative

Illustrations as Roadmaps