Policy Information – Page 2

Interest Rate Guarantees Many insurance products offer minimum interest rate guarantees for the life of the contract. In fact, some of these guarantees are mandated by statutory nonforfeiture laws. Although guarantees of 3-5% were once considered minimus, the current low interest rate environment renders them problematic. This session will explore the product design,pricing and investment…

Premiums, Costs, Values and Benefits Premiums and Benefits – Index P1P2 – Policy Mechanics / Cash Flow / Language In the case of true Universal Life…the product is modular and adjusts instantaneously to changes in benefits, premiums, and experience. — George R. Dinney: 1982 – SOA – Programs to Conserve Traditional Life Insurance Policies, Society of…

Interest Interest – Index (p9) – The literature attached to the conservation brochure read: “At Minnesota Mutual, we believe you should get an up-to-date return on your insurance dollars – no matter how long you’ve owned your policy. With Ultimate Interest™, our unique interest crediting method, we credit current, competitive interest rates to each premium…

General Accounts 1983 – SOA – Segmentation of Insurance Company General Accounts, Society of Actuaries – 38p New Money / Portfolio Money Investment Generation Method 5. A general account is a design feature that is generally available to purchasers of whole or universal life insurance whereby the general assets of the insurance company support the…

As long as you pay the premium…. Coverage Period Coverage Period – Examples ….the concept of a “premium due date” was thought to be inapposite to flexible premium policies. 1983-1, NAIC proceedings [def. inapposite: out of place; inappropriate] Let’s review the basic mechanics of Universal Life. The policy does not lapse if a premium is…

Guaranty Funds NAIC – Financial Condition Committee – (E) — [BonkNote] Guaranty Fund Issues Working Group – (E) – NAIC — [BonkNote] NCIGF – National Conference of Insurance Guaranty Funds – ncigf.org/ — [BonkNote] NOLHGA – National Organization of Life and Health Insurance Guaranty Associations — [BonkNote] (p515) – The working group identified several issues relevant…

Policyholder Orphaned Policyholder Behavior Policyholder Options POLICYHOLDER PROTECTION Consumers Consumer Education Confusion

Policyholder Options Many insurance contracts offer the policyowner options regarding premium payment, benefit patterns, and policy loans. This flexibility means that many different patterns of future cash flow could arise under the contract. (p6) 2002 09 – AAA – Fair Valuation of Insurance Liabilities: Principles and Method, American Academy of Actuaries – 48p The ACLI’s Dolan…

Advice Incidental Advice Thomas v. Metropolitan Life Insurance Company, Case No …Aug 31, 2009 — This policy was a variable universal life insurance policy. The Third … advice “solely incidental to” the conduct of business as a broker or dealer. … under the IAA if the advice they give is “solely incidental to” their broker activities and they receive…

Linton Yield Albert Linton James Hunt Richard C. MURPHY: One of your charges was to comment on the use of the Linton yields for dissimilar plans and to compare the costs. Has your group made much progress on that issue? William SNELL, Northwestern Mutual: We have looked into that and are not ready to comment…