Policy Mechanics – Cash Flow – Page 5

Policy Maturity Isn’t it more realistic to assume a customer wants to know what the cost will be if he carries that policy out to maturity? (p13) — Senator Howard W. Cannon (D-NV), Chairman of the Committee 1979 0710 and 1017 – GOV (Senate) – FTC Study of Life Insurance Cost Disclosure, Howard Cannon (D-NV) …

GMF – Guaranteed Maturity Fund The guaranteed maturity fund at any duration is that amount which, together with future guaranteed maturity premiums, will mature the policy based on all policy guarantees at issue. NAIC – Universal Life Insurance Model Regulation (#585): – 22p Shane Chalke ULMR – Universal Life Insurance Model Regulation – MDL-585 –…

Premium Due Date …this was done because (1) 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 Legal Cases 2018, Elhouty v Lincoln Benefit, United States Court of Appeals, Ninth Circuit, Google Scholar 2010, Maloof v John Hancock, SUPREME…

Annual Report The flexibility of Universal Life that initially appealed to the policyholder which allowed him to change premium payments, coverages, etc., will make this annual report of the condition of his “account” an unanticipated shock. — Dale W. Hotze, is President of Hotze & Associates Inc., Jacksonville, Florida. 1983 – SOA – Universal Life (rsa83v9n32),…

Charges 198x – NAIC LIBG – ACLI = Scribe, vs 199x NAIC LIBG – Cude, Kite, Regulators = Scribes Legal Cases Walker vs LSW Per Thousand NAIC – Universal Life Model Regulation (MDL-585) – (p4) The benefit charges shall include the charges made for mortality and any charges made for riders or supplementary benefits for…

Policy Mechanics / Cash flow / Works Until the buyer understands how the product works, attempts to compare price are essentially meaningless. 1972 – SOA – Life Insurance and the Buyer, by Anna Rappaport, Society of Actuaries – 2p-Article Buyers of life insurance are entitled to descriptions of their policies and how they work. But…

Benefits The main concern was that an unsophisticated buyer purchased a policy and did not know what the coverages, benefits and limitations were. 1988 0603 – Universal & Other New Plans (A) Task Force – NAIC – Attachment Two 1988-2, NAIC Proc. Nonforfeiture Premium Benefit Pattern – Examples Benefits – ACLI Benefits – Actuarial Benefits…

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,…

Commissions “compensation patterns and product design” “Special Compensation” – “incidental advice” Renumeration levelized commission program We designed commission rules that anticipated a relatively large number of rollovers of existing policies;. ..full commissions are paid provided the new Universal Life face amount is at least two times the face amount of the replaced policy. — Phillip B. Norton, not…

Unbundled The “unbundling’ of services and other product differences between Universal Life and Ordinary Life cause current literature to be inapplicable, as well as insufficient, for Universal Life. 1984 – AAA – American Academy of Actuaries – Journal I would like to ask how many people here have received requests for such unbundling from the public.…