Problem – Page 3 – [BonkNote]

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…

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) ,…

Problems – 1 Leslie Scism Article NAIC Proc. LIAC – Doug, Kim O’Brien It was suggested that disclosure requirements be placed in the illustrations section of the models as well as in the contract itself. Some of the items identified which should be disclosed: (2) adequate disclosure of the fact that a premium quoted…

Problems Problems – Index Solutions Problems – 1 Robert E Wilcox Change Without Damage The number one perceived problem is that buyers simply do not understand the nonguaranteed nature of life insurance illustrations. Also, it is impossible for the average buyer to judge the reasonableness of the assumptions underlying the numbers in the illustration. — …

Illustrations – Problems We’ve all heard a lot about the junk bond crisis. Is the next crisis going to be junk illustrations? — Judy Faucett 1991 – SOA – Illustrations, Society of Actuaries – 20p The number one perceived problem is that buyers simply do not understand the nonguaranteed nature of life insurance illustrations. Also, it is…

Mis-selling …customers may be satisfied with companies because they provide inexpensive products, but the customers may be misinformed about what is being sold. (p3) 2015 0501 – Letter – AAA to IAIS – Committee Comments To IAIS on Conduct of Business Risk Draft Paper, American Academy of Actuaries – 4p Mis-selling and market conduct issues…

Q: What’s the Problem That We Are Trying To Solve? *Robert E. Wilcox: What’s the real problem then, Shane? Shane Chalke: I’ll say before I answer that I don’t have a good answer. 1995 – SOA – Current Developments Surrounding Regulations and Standards of Life and Annuity Products, Society of Actuaries – 18p ⇒ *Robert…

Solutions Solutions – Index Problems Problems – Index Illustrations Annual Reports Ratebook Graphs If there is a better way, let it be sought and may it be found — and let it be to the credit of our industry that we are the ones to find it and to provide it for the consumer. — …

Disclosure Disclosure – Index The purpose of disclosure is to let the life insurance buyer know what he’s getting. — Russell R. Jensen 1977 – SOA – Cost Disclosure in Individual Life Insurance – Society of Actuaries – 18p …. I agree that failure to disclose not only misrepresents but also sows the seeds of destruction. …