Policy Information

Numeric Summary Illustrations and Premium Limits The NAIC Life Insurance Illustrations Model Regulation requires a basic illustration to consist of a numeric summary of the death benefits and values on three bases: Here is an example. The policy illustrated below is $100,000 specified amount with a $60 policy load, assessed monthly. The guaranteed interest rate…

Promises At the 1986 Annual Meeting of the American Council of Life Insurance ACLI Chairman John Pearson stated: Our products must do what we say they do. Our companies must fulfill their promises. All the words in the world – the best government relations, the best public relations-will not be enough without performance. (p2) 1987 01…

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,…

Realistic Assumptions Summing up, it seems to me that reasonable assumptions for annual premium policies must recognize the long-term commitments in question, and thus should consist of a realistic current mortality table with projection into future years, together with an interest rate not higher than 3% and preferably somewhat lower. — Wilmer A. Jenkins 1961…

DIY – Do It Yourself 28 Oct 1981, Wed Journal and Courier (Lafayette, Indiana) Newspapers.com In fact, it is accurate to describe Universal Life as a generalized version of the actuarial formulas underlying traditional life insurance products. In other words, it is possible to produce any traditional plan of insurance from the generalized formulas underlying…

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 -…

Surrender Charge Because of the multitude of problems in any application of a prospective method, a retrospective requirement was adopted. It was felt that the most important relationship to the policyholder would be that between the account value and the cash value. This amount, the surrender charge, is the quantity regulated by the Model [Bonk:…

Premium Loan Automatic premium loan A loan provision in a life insurance policy allowing any premium not paid by the end of the grace period (usually 30 or 31 days) to be paid automatically through a policy loan if cash value is sufficient. (p134) 2016 – ACLI Fact Book – 186p J. B. WALKER felt…

Policy Information – History Market Conduct Surveillance Task Force “RULES GOVERNING THE ADVERTISING OF LIFE INSURANCE” 1987/1988 – ACLI STATEMENT ON BEHALF OF THE AMERICAN COUNCIL OF LIFE INSURANCE TO THE NAIC (A) COMMITTEE’S TASK FORCE ON LIFE INSURANCE COST DISCLOSURE, December 15, 1981 Since universal life insurance was then being marketed only on a…

Policy Overview Ideas 1976 – AP – Implementation of Full Disclosure of Policy Value in the Life Insurance Contract Per 1000 Bernacchi – 17p Life Insurance Disclosure Model Regulation – January 1993 – Appendix D Policy Information for Application -Universal Life ACLI – IAA joint reportaugfinal 31-32 Policy Overview_Page_1 ACLI – IAA joint reportaugfinal 31-32…

Numeric Summary

Promises

Meaningful Disclosure

Reasonable Assumptions

DIY – Do It Yourself

Policy Performance

Surrender Charge

Premium Loan

Policy Information – Snippets

Policy Overview – Examples