Risks – Page 6 – [BonkNote]

Liquidation Receivership Troubled Companies UILA – Uniform Insurers Liquidation Act Asset Liquidation Disintermediation Life Liquidity Risk Working Group – NAIC Liquidity Liquidity Assessment Subgroup Liquidity Risk Liquidity vs SolvencyLapse Risk Run Runnable Run on the Bank Run on the Life Insurance Company “asset liquidation analysis” UILA – Uniform Insurers Liquidation Act 1940 – LR -…

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…

Risk Classification 1980 – SOA – Risk Classification, Society of Actuaries – 18p 26. Five sets of congressional hearings have been held on a bill introduced by Senators Hatfield and Packwood and Representative Dingell that would prohibit classification on the basis of race, color, religion, sex, and national origin. Most of the testimony from the…

Pensions Pensions – Index ERISA – Employee Retirement Income Security Act of 1974 Guaranty Funds NOLHGA – National Organization of Life and Health Insurance Guaranty Associations PBGC – Pension Benefit Guaranty Corporation PRT – Pension Risk Transfer Private Equity, Athene, government hearings – 2023 – Sherrod Brown, Elizabeth Warren Executive Life, Maxxam, Drexel, Pacific Lumber Company…

Persistency 1981 – SOA – Patterns in Persistency, Society of Actuaries – 18p 1995 12 – SOA – 1994-1995 Year in Review, The Actuary, Society of Actuaries – 6p SOA Research and the Life Insurance Marketing and Research Association (LIMRA) completed a report on universal life persistency results that have never before been published on an…

Nonbank Financial Conglomerate Nonbank Banks Nonbank Financial Companies sechistorical.org/museum/galleries/mec/mec05b_modernization_nonbank.php According to the Dodd-Frank Act, nonbank financial companies are domestic companies or foreign companies that predominantly are engaged in financial activities (such as insurance companies, consumer finance providers, commercial lenders, asset managers, and investment funds) but that are not bank holding companies or certain other types…

Mass Lapse 2016 – IAIS – Risk-based Global Insurance Capital Standard Version 1.0 Disintermediation Run – Triggers Legal Case – Fairbanks v Farmers Survey – 50% Unfortunately, some offices issued these contracts with a cash value of something approaching the total single premium guaranteed at any time. Interest rates rose, competitors offered better terms, and…

Surrender Cash Surrender Values Lapse vs Surrender Surrender Values 2013 – AP – An Empirical Analysis of Life Insurance Policy Surrender Activity, by David T. Russell, Stephen G. Fier, James M. Carson, and Randy E. Dumm – 23p 1877 0723 – New York Senate – Testimony Taken Before the Senate Committee on Charges Against De…

Deceptive Deceptive Business Practices Deceptive Contracts Deceptive Sales Practices When a policyholder feels deceived, the disintermediation potential is enhanced. — Allen D. Booth, a consultant in the Milwaukee office of Towers, Perrin, Forster and Crosby 1982 – SOA – Universal Life Update, Society of Actuaries (rsa82v8n34) – 26p In guarding the public against insolvent insurance…

Optional Federal Charter 2007 1214 – CRS – Insurance Regulation: Optional Federal Charter Legislation – 16p 2004 – AP – Consumer Ramifications of an Optional Federal Charter for Life Insurers, Sheila Bair – 273p Chart – p262 2008 – SOA – Optional Federal Charter (OFC)—Another Acronym, Another Concern, By Norman E. HIll – 5p “OFC proposal”…