Premium – Page 3 – [BonkNote]

Premium – Actuarial – Universal Life The complications begin with a very simple question: What’s the premium for Universal Life? It could be almost anything. Then what’s the cash value? That depends on the premium. It is the relationship between the premium and cash value that determines the product characteristics of Universal Life. — Ben…

Guideline Annual Premium In short, Petitioner states, the guideline annual premium equals the annual premium necessary to keep the policy in force for the life of the insured. [Bonk: Petitioner = ACLI] 1983 1130 – Federal Register, Vol.48 No. 231 – 234p The suggested rule keys this additional exemptive relief to a “guideline annual premium.” This…

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…

Premiums – Index ABCDEFGHIJKLMNOPQRSTUVWXYZ A As long as you pay the premium Back to top C Charges Cost – Index Back to top F Flexible Premium Fractional Premiums Back to top G GLP – Guideline Level Premium GMP – Guaranteed Maturity Premium Graded Premiums Guaranteed Gross Premium Guaranteed Premium and Benefits Patterns Summary – NAIC…

Problem – Premium Permanent (cash value) life insurance pays the beneficiary whenever the insured dies, as long as premiums have been paid. (p38) 2016 11 – FIO (Federal Insurance Office) – Report on Protection of Insurance Consumers and Access to Insurance – 58p 2017 1115 Letter – NAIC Life Insurance Buyer’s Guide Working Group (LIBGWG) ,…

Indeterminate Premium The product revolution, in my mind, began in the 1970s with the introduction of indeterminate premium products. The introduction of universal life in the early 1980s really did create a revolution. We’ve seen more product change and more increasing frequency of product change in the 1980s than ever before. — William R. Britton,…

Guideline Premium Guideline Premium Forceouts 1987 – Federal Register – Volume 52, Issues 62-67, p11201 – Guideline Premium Technical Corrections Act of 1988 – Hearing Before the Committee on Finance, United States Senate, One Hundredth Congress, Second Session, on S. 2238 and H.R. 4333, July 13, 1988 · Volume 4

Nonguaranteed Premium (Policy) 3. What considerations (including state requirements) are involved in setting the premium rates? a. At issue-maximum and illustrated premiums. 1980 – SOA – Nonparticipating Life Products with Nonguaranteed Premiums (rsa80v6n22), Society of Actuaries – 18p Nonguaranteed Premium Policies Cash values and death benefits under these policies are guaranteed, but their premiums are…

Insufficient Premiums Premium Considerations The non-guaranteed premium concept can be utilized for all forms of nonparticipating insurance, including both term and permanent policies. In setting insurance premiums, the actuary can use pricing assumptions that are as realistic as possible. The actuary is not locked into “50 years” of insufficient premiums if his or her estimates…

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…