Risks – Page 7 – [BonkNote]

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”…

SIFI – Systemically Important Financial Institutions (p21) – Chairman LUETKEMEYER (R-MO) – Thank you. Mr. Van Der Weide, I want to let you know that you gave us more information in your 2 or 3 minutes’ response here than all of the other folks we have had before this committee, put together, when we asked…

Mis-selling …customers may be satisfied with companies because they provide inexpensive products, but the customers may be misinformed about what is being sold. (p3) 2015 0501 – Letter – AAA to IAIS – Committee Comments To IAIS on Conduct of Business Risk Draft Paper, American Academy of Actuaries – 4p Mis-selling and market conduct issues…

Procyclical 2006 – IMF – Procyclical Fiscal Policy: Shocks, Rules, and Institutions—A View From MARS – 41p 2009 0504 – Procyclicality – what it means and what could be done, Jean-Pierre Landau, Deputy Governor of the Bank of France – 6p

Fairness Now we want to make sure that the consumers are treated fairly and reasonably and have sufficient information upon which to make a decision. (p318) — James P. Corcoran. , Superintendent of Insurance, State of New York 1984 – {April 11, May 3, 10, June 28, September 13} – GOV – Competition in the…

Policyholder Behavior IAIS Question 83: NAIC Response: Lapse risk is an example of an overall important category of policyholder behavior, which is an important risk in a number of products such as universal life and variable annuities. (p11) 2015 0213 – IAIS – IAIS Insurance Capital Standard Public Consultation Document – Final NAIC comments –…

Nature of… The nature of the life insurance industry calls for a relatively conservative investment policy, with safety of principal being of highest importance. — ROBERT R. WYAND II 1977 – INVESTMENT STRATEGY AND PLANNING, Society of Actuaries – 16p

Reputational Risk I sincerely believe we have a flawed instrument in today’s sales illustrations. …we did not communicate the impact of change as well as …we should have. Our biggest mistake would be to delay. I don’t believe the consumer will tolerate or forgive us, let alone the regulators, if we do nothing. — Robert…

Interest Rate Risk – (C-3) C. L. Trowbridge coined the term C-3 risk to denote the risk of losses due to changes in interest rates. 1988 – SOA – Algorithms for Cash-Flow Matching, Society of Actuaries – 8p In many jurisdictions, insurance companies have expended significant efforts to understand the sensitivity of their investment portfolios…