What Does That Mean? COP  – 1st Hearing – Twin Peaks, Reputational Risk, Who? Rep. <Michael> Goschka:  I will remember various speeches given by ……..—and Nelson Saunders—when he was here (laughter).  (p18) Rep. <Mary Lou> Parks:  When the Representative mentioned Nelson Saunders, I said yes, when he was here he was a bad dude.  (p19)…

Read More

Questions – NAIC 2013 – NAIC – State of the Life Insurance Industry: Implications of Industry Trends – 220p Additionally, the insurer usually guarantees the cash value will not fall below a minimum value. Transcript of NAIC Webex Conference Calls like the SEC? https://www.sec.gov/files/amac-071620-transcript.pdf Why is there a JP Morgan Copyright on NAIC materials? Who is/are the Life…

Read More

Is the Insurance Industry Exposed to Systemic Risk? Systemic risk afflicts all life insurance and investment firms around the world. 2009 – AIG: Is the Risk Systemic?, 26 Feb 2009 – Report – 21p <YES> The insurance industry is exposed to systemic risk.  The viability of the insurance sector rests on the perception that insurers can and…

Read More

Q: Why didn’t the ACLI / NALU / NAIFA Show Up? We invited some members of the Advisory Committee to testify today, too. We asked the National Association of Life Underwriters representing over 140,000 life insurance agents to send the chairman of its Illustration Task Force.  —  [NALU – Currently NAIFA] We invited the American Society…

Read More

Q: Who Created Universal Life Insurance? Life of California / California Life E.F. Hutton James C.H. Anderson George R. Dinney James C.H. Anderson Maurice H. Lavita Professor Robert  Mehr other soa guy WHO CONCEIVED THIS INSTRUMENT? – Universal Life Insurance Subject to responsibility being accepted (and documented) by somebody else, we hold that the father…

Read More

Q: Universal Life – Who wanted this? In more modern times, insurance products became considerably more complex (e.g., universal life type products with various forms of guarantees, various forms of renewable term, etc.). These products arose from a significant rise in interest rates in the early 1980’s and a wave of consumer demand for products…

Read More

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…

Read More

What Policies lead to Confusion / Market conduct issues / Lawsuits? More complex products sold to individual consumers (e.g., universal life policies) tend to generate more market conduct problems than simple products (e.g., term life insurance). 2003 0701 – NCOIL – The Path to Reform – The Evolution of Market Conduct Surveillance Regulation – [PDF-117p]…

Read More