Policy Mechanics – Cash Flow – Page 2

Q: Should A Life Insurance Policy Be Split? – SIV/CIV High early cash value policies, “premium endowments,” and other policies which overemphasize the cash-value buildup have been around for years. Recently, however, some state insurance departments have been taking a closer look at these policies. At least one state has gone so far as to…

Q: Who Can Explain How Life Insurance Policies Work? Academics 2018 1118 – No. 294: Universal Life Policies—a Disaster for Life Insurance Companies and Their Policyholders, by Joseph Belth – [link] Detailed discussions of the history and operation of universal life may be found in college-level insurance textbooks. See, for example, pages 70-76 in the 15th edition…

Elements In my experience very smart people don’t really know what all the components mean. I mean I feel like it does lead to confusion. So, I think if you can refer to the eventual illustration and just show the cash value. — Teresa Winer (GA) 2019 0917, NAIC – LIIIWG – Life Insurance Illustrations Working Group,…

BGF – Benefit Generating Function BGA – Benefit Generating Account BGF – Benefit Generating Function Premium Calculation One thing to keep in mind is that you can take a traditional whole life policy and determine an underlying benefit generating function, because the cash values are simply there. You can fix one item and say, “We…

M&E Charge Now how could the staff be sure that this M&E charge was not a secret sales load? — W. Randolph Thompson, with the law firm of Jones & Blouchin Washington, will speak on some SEC issues 1993 – SOA – Variable Products — Product for the 1990s?, Society of Actuaries – 22p

Loads 1984 – SOA – Rear End Loaded Funds, Society of Actuaries – 22p

Dynamic Products NGEs Policyholder Behavior George Coleman said he hoped this is a dynamic document. — George Coleman, Prudential, ACLI, TRG-Technical Resource Group for the NAIC (Industry Advisory Group – Illustrations) 1994-, NAIC Proceedings This paper develops a model which can be used to help life insurance consumers decide how much insurance to purchase. The original…

Separate Accounts 1985 0717 – Federal Register – Vol. 50, No. 137 p28930-28931 – SEC – Investment companies: Separate accounts funding flexible premium variable life insurance contracts – 2p 2000 – SOA – Separate Account Products in the U.S. and Canada: Comparing Their Design, Regulation, and Taxation, Society of Actuaries – 28p 2. A separate account is…

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…

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…