Regulatory – Page 11

Generic Name Proposed Revision of NAIC Life Insurance Solicitation Model Regulation (ACLI) – October 22, 1982 A Generic Name means a short title which is descriptive of the premium and benefit patterns of a policy or a rider. NAIC Proceedings

Retrospective Retrospective vs Prospective Mr. Carroll: Retrospective and prospective, if everything fits and works nicely, as Doug pointed out, it doesn’t matter. You get the same answer looking both ways. It only matters when things are out of sync and something has gone wrong or gone better than has been reflected. That’s how we come…

MSRV – Mandatory Securities Valuation Reserve Impact of Economic Changes on Common Stock Values When the MSVR was first established in 1951, common stocks represented only 1.2 percent of the assets of U.S. life insurance companies. However, the sharp rise in common stock prices during the 1950s and early 1960s, combined with the stimulus of…

Manipulation Manipulation, Lapsation, Dividend Practices and Annuity Disclosure (A) Task Force 1981 – DETECTING POSSIBLE MANIPULATION: THE PEER REVIEW APPROACH – SOA – Moderator: JULIUS VOGEL. Panelist: WALTER N. MILLER – 12p Ms. Edwards requested the wishes of the subcommittee as to whether the task force should address the question of manipulation with inforce policies. Upon…

Replacements 1035 Exchange Churning Disintermediation Twisting Agency Problems: Policy Replacements A. What information is available on the extent of policy replacement abuses? What steps have individual companies taken to control replacements of existing policies? What procedures have companies adopted to meet the several state regulations regarding replacements? 1961 – SOA – Agency Problems: Policy Replacements, Society…

Charges 198x – NAIC LIBG – ACLI = Scribe, vs 199x NAIC LIBG – Cude, Kite, Regulators = Scribes Legal Cases Walker vs LSW Per Thousand NAIC – Universal Life Model Regulation (MDL-585) – (p4) The benefit charges shall include the charges made for mortality and any charges made for riders or supplementary benefits for…

Expense Allowance Elizabeth MacGowan – Trial – Walker v Life Insurance Company of the Southwest The Model Regulation specifies that the expense allowance shall be that for level premium, level death benefit endowment insurance at the maturity date. The rationale for choosing a “whole life” expense allowance of this sort was thought out carefully. It…

R-Ratio / R-Factor Conseco, Garn Lawsuit, R-Factor In essence, the model regulation <Universal Life Model Regulation> assumes that at issue, all universal life policies are permanent plans. The r-ratio is meant to measure the extent to which the policy is “on track” as a permanent plan. Statutory Valuation of Individual Life and Annuity Contracts |…

Benefits The main concern was that an unsophisticated buyer purchased a policy and did not know what the coverages, benefits and limitations were. 1988 0603 – Universal & Other New Plans (A) Task Force – NAIC – Attachment Two 1988-2, NAIC Proc. Nonforfeiture Premium Benefit Pattern – Examples Benefits – ACLI Benefits – Actuarial Benefits…

Supportable 1988 – SOA – Are Current Illustrations Supportable?, Society of Actuaries – 20p I endorse the idea of giving the Society of Actuaries more power to determine supportability. I think the general principles outlined by Harold Phillips (August 19, 1993) are very good in this regard. The percent of 80CSO cost index could be…