Policies – Page 12

Select and Ultimate The select and ultimate term product is an example of a poorly designed product. The low going-in rate with increasing premium in later years, obviously encourages replacement. (Recall that select and ultimate term are mortality and tax driven, not persistency driven.) — Lawrence Silkes, Vice President and Chief Actuary of New Jersey…

Investment-Oriented Products In contrast, many of the investment-oriented products marketed in the last decade have shorter duration and require greater liquidity than was needed in earlier … 1992 – World Bank – The Life Insurance Industry in the United States: An Analysis of Economic and Regulatory Issues, by Kenneth M. Wright – 54p 1987 – SOA -…

Non-Traditional Life Insurance Products GICS – Guaranteed Investment Contract Investment-Oriented Products NTNI – Nontraditional and Non-insurance Q: Is Universal Life Insurance a Traditional Product? 1996 – SOA – Legal Issues Affecting Nontraditional Products, Society of Actuaries – 14p A new exposure draft of a revised model regulation has been prepared by the staff of the…

Permanent Life Insurance Whole Life Universal Life as Permanent / Whole / Other Why is Universal Life Insurance sometimes called Whole or Permanent? Permanent Plan 20. Aetna does not dispute that Mr. Pflugfelder described the Policies as “permanent insurance.” He did so correctly, as Plaintiffs concede. 21. Aetna does not dispute this paragraph, but adds…

Nonguaranteed Premium (Policy) 3. What considerations (including state requirements) are involved in setting the premium rates? a. At issue-maximum and illustrated premiums. 1980 – SOA – Nonparticipating Life Products with Nonguaranteed Premiums (rsa80v6n22), Society of Actuaries – 18p Nonguaranteed Premium Policies Cash values and death benefits under these policies are guaranteed, but their premiums are…

Interest Sensitive Life Insurance 8. The growth of interest-sensitive insurance products, such as universal life, spurred by a period of high inflation and historically high interest rates. 1984-1, NAIC Proc. Other interest-sensitive policies include variable life, adjustable life and variable premium life. In variable life policies, the assets (typically equities) underlying the policies are held in…

Term to 100 A product that is available and sold in Canada today, commonly called Term to 100, doesn’t have any nonforfeiture value at all. It’s a level-premium, whole-life product without any nonforfeiture value. — Walter A. Neeves 1995 – SOA – Practical Illustrations and Nonforfeiture Values, Society of Actuaries – 14p

Reinsurance Assumption Reinsurance Captive Reinsurance Financial Reinsurance Reinsurance Collateral Reinsurance – Taxes 1988 – SOA – Reinsurance Tax Issues, Society of Actuaries – 10p Surplus Relief Reinsurance Skinner – GOV – Blunt Instrument NAIC – Special Purpose Reinsurance Vehicle Model Act – 789-1 – 34p Section 1. Purpose – This Act provides for the creation of Special…

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. insurance company investment…

Features Key Attributes of Generic Life Insurance Policies — Table 4-2 Duration of coverage – Universal Life – Depends on premiums paid (p111) 2015 – Book – Life Insurance 15th Ed. – Black, Skipper, Black (Huebner Series) 1993 – SOA – Product Design / Pricing with Bonus Features, Society of Actuaries – 22p 2004 – ACLI/…