Credibility MR. BARKS:  Is credibility a better word? George COLEMAN: Yes, credibility in the sense that those numbers were developed using actuarially appropriate standards. —  George Coleman, Prudential, ACLI, TRG-Technical Resource Group for the NAIC (Industry Advisory Group – Illustrations) 1994 – SOA – Problems and Solutions for Product Illustrations, Society of Actuaries – 28p 2009 – SOA…

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State Insurance Regulators As a member of a regulatory body it is important that you become involved in self-education to increase your professional knowledge and keep current on developments within the ever-changing business of insurance. 1984-2, NAIC Proc. – Report Of The (EX3) Market Conduct Surveillance Task Force Working Group On Consumer Complaint Analysis Joel…

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Consumer Representatives Birny Birnbaum Brenda Cude CFA-Consumer Federation of American Consumer Reports Members of the NAIC Market Conduct & Consumer Affairs Subcommittee Advisory Committee    Mr. Hunter then discussed the matter of consumer representation on the committee and stated his viewpoint that if this truly is to be a market conduct and consumer affairs subcommittee, there…

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Free Look / Cooling Off Period NAIC – CIPR-Knowledgebase – Model Regulation 582: Life Insurance Illustrations – [link] Question:  …. if the regulation includes a 10 day free look provision, would staff also provide me with minutes and other official notes on the purpose of the free look period? Answer: … the “10 day free look provision”……

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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. …

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Timing of Disclosures / Information to Consumers Since supplying this information can interfere with the sales process, it would appear much better to give the customer a ten day free look and supply the required information at time of delivery. —  Paul J. Overberg 1976 – SOA – Cost Comparisons and Policy Language, Society of Actuaries -…

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Regulation Activities-Based Regulation Deregulation Federal Government Entity Regulation Functional Regulation Insurance Regulation by the Courts / Legal Cases Market Conduct NAIC (National Association of Insurance Commissioners) Solvency States State vs Federal Regulation Twin Peaks Regulation Worldview Equal to the need for financially sound insurance products is the need for socially responsive insurance companies. Consumers are…

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NAIC – Model Laws and Regulations (p32) – Scott Gilliam – Assistant Vice President and Government Relations Officer, The Cincinnati Insurance Companies – Be careful what you ask for when you ask for a Federal insurance code. But I will say that the idea is somewhat intriguing since it would reserve the ultimate regulatory authority…

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PBR – Principles-Based Reserves 2007 – SOA -Treading into the Thicket: Federal Income Tax Implications of Principles Based Reserves, by Christian DesRochers and Douglas N. Hertz, Society of Actuaries – 86p 2016-1 – NAIC – Implementing Principle-Based Reserves for Life Insurers: A Discussion Paper – 27p March 28, 2016, New York Life, NAIC Proceedings –…

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Readability / Plain Language / Flesch By readability, I do not mean the use of two syllable words, three word sentences and a high score on the Flesch test. What I mean is the ability to communicate what you are, in fact, offering in your contracts and the words the agent uses to explain the…

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