Policy Mechanics – Cash Flow – Page 7

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 – Journal – AAA – American Academy of Actuaries I would like to ask how many people here have received requests for such unbundling from the public.…

Performance Benefits Coverage Period Historical Performance Policy Performance, Variability, UL Description Results Outcomes Cost – 2000 – AP – The Nature and Causes of Variation in Insurance Policy Yields: Whole Life and Universal Life, Journal of Insurance Issues, 2000, 23, 1, pp. 30–47, by James M. Carson and Mark D. Forster – 18p The actual versus…

Illustrations as Roadmaps This was an optional idea that we called “Illustrations As Road Maps.” The concept is that instead of letting the actual performance of a Universal Life policy diverge over time further and further from what was originally illustrated, you could send policyholders a notice each year on the anniversary, if the results are below…

Cash Value Gary Sanders (National Association of Insurance and Financial Advisors—NAIFA) agreed that use of the term “cash value” was confusing. 2017 0217 – NAIC – LIBG WG Conference Call This creature called universal life has evolved from a combination of term insurance and a flexible premium annuity to a range of differing products with…

Premium Per Thousand For cost comparison purposes, the natural unit price for insurance is dollars of Premium per thousand dollars of death benefit per year—adjusted as appropriate and cash surrender values. — [ACLI] American Council of Life Insurance, on the FTC Staff’s Responses to Criticisms of the Report of the Report on Life Insurance Cost Disclosure …

Premiums Premiums – Index Richard Weber, Merrill Lynch Life … suggested that the illustration show … how the policy values are paying the premium. Mr. Morgan said that this issue needs specific attention because many complaints were received in the state insurance departments on this issue. (p521) 1994-3, NAIC Proceedings – Life Disclosure Working Group…

Lapse Lapse Rate Lapse Risk Lapse-Supported Lapse vs Surrender Lapse – Walker v LSW Defective – Lapse Prone – Walker v LSW Mass Lapse Problem – Lapse 1978 0807, 0814 and 0815 – GOV (House) – Life Insurance Marketing and Cost Disclosure, John Moss (D-CA) — [BonkNote] John Bragg: I can tell you how we handled…

Dividends Fifth Dividend Manipulation, Lapsation, Dividend Practices and Annuity Disclosure Task Force – (A) – NAIC Three Factor Dividend Formula 1984 – SOA – High Drama on the Dividend Front, by Ardian Gill, The Actuary, Society of Actuaries – 4p Origin of the Word “Dividend” Mr. Winter points out that policyholder dividends are often confused…