Regulatory – Page 10

Numeric Summary Illustrations and Premium Limits The NAIC Life Insurance Illustrations Model Regulation requires a basic illustration to consist of a numeric summary of the death benefits and values on three bases: Here is an example. The policy illustrated below is $100,000 specified amount with a $60 policy load, assessed monthly. The guaranteed interest rate…

Yield Index Yield Index Advisory Committee – NAIC 1989 – SOA – What Will Be The Life Insurance Products Of The Future, Society of Actuaries – 18p 1987 – SOA – Regulatory Update, Society of Actuaries – 26p The NAIC Yield Index Advisory Committee was started in the middle of 1984 at the behest of the…

Regulators – Time in Office As Steve mentioned, I’ve had the privilege of serving as Director of the Illinois Department of Insurance for just less than two years and given the history of tenure of commissioners….. I may be becoming an endangered species. — Stephen Selcke, Director of the Illinois Department of Insurance 1993-2, NAIC…

Confusion After receiving these notices, John (Policyowner) contacted Glasgow (Agent) who had retired in 2000, to inquire why his policies would be terminating, even though he had timely paid the premiums on the policies for approximately 18 years. (p5) 2010 – LC – Maloof v John Hancock – 60 So. 3d 263 – Ala: Supreme…

Meaningful Disclosure Teresa Winer (GA) said that disclosure is helpful, but only if it is meaningful. 2019 0917 – NAIC Proceedings (Fall, 6-77) – LIIIWG – Life Insurance Illustrations Working Group …. would they know what that really means in terms of the risk to them and how it would interact with…… — Brian Brosnahan,…

Solvency II Solvency II came into effect on 1 January 2016 en.wikipedia.org/wiki/Solvency_II#:~:text=Solvency%20II%20is%20a%20Directive,reduce%20the%20risk%20of%20insolvency. Europa – Risk management and supervision of insurance companies (Solvency 2) – [link] Bank of England – Solvency II- [link] 2006 – JIR / NAIC – Modernizing Insurance Solvency Regulation: Evidence from the UK – 21p With respect to insurance companies, Douglas et al.…

Capital Standards ICS – Insurance Capital Standards – IAIS Spencer BACHUS (R-AL) – I believe to protect those that are relying on the bond insurers’ capitalization, I believe the superintendent of the New York Insurance Department could have raised the capital standards. Governor SPITZER. Sir, I think you misapprehend— Spencer BACHUS (R-AL) I believe there…

Policyholder Protection Consumer Protection The fundamental tenet of our U.S. system is to protect policyholders by ensuring the solvency of the insurer and its ability to pay insurance claims. (p36) — Prepared Statement of Kevin M. McCarty, Commissioner Florida Office of Insurance Regulation – On Behalf of the National Association of Insurance 2015 0428 – GOV…

Bank-Like The regulation provides for the pre-funding of cash values, so that the amounts will be available upon policyholder demand, and will not be contingent upon sufficient surplus being available at that time to cover what is the equivalent to a demand deposit. The regulation relies heavily on the NAIC Universal Life Insurance Model Regulation…

Macroprudential versus Microprudential Regulation Common Exposures Contagion Liquidity modeling Mass lapses macroprudential surveillance Systemic amplifiers Triggers NAIC Liquidity Stress Testing (LST) Framework NAIC MACROPRUDENTIAL INITIATIVE (MPI) – [link] Macroprudential Task Force (MPTF) of the American Academy of Actuaries Common Exposures 269 For instance, in 1991 six major life insurers, each with over $4 billion in…