Nebraska

We are seeing a real crisis in confidence:

  • That, in my mind, is probably the worst thing that could happen.   
  • There is not a company in the country that can stand runs that Commissioner Weaver was talking about, where people ask for $1 billion in policy loans and surrenders in a 2-week period.  (p13)

—  William McCartney, Director of Insurance, State of Nebraska and Vice President, National Association of Insurance Commissioners (NAIC)

1991 0729 – GOV (House) – Regulation of Insurance Companies and the Role of The National Association of Insurance Commissioners – [PDF-286p

  • Rhonda Ahrens – Insurance Commission
  • William McCartney –
    • 1987-1994 – Director of Insurance, State of Nebraska
      • 1991 0729 – GOV (House) – Regulation of Insurance Companies and the Role of The National Association of Insurance Commissioners – [PDF-286p
    • bipartisanpolicy.org/person/william-h-mccartney/
  • Ben Nelson (D-NE)
    • NAIC CEO – 2013 to 2016
    • Senator – 2001-2013
    • Governor – 1991-1999
    • Insurance Commissioner – 1975-1976
  • Bruce Ramge – Insurance Commission

Iowa

  • 1999 / 2003 – LC – VOS v Farm Bureau and FBL
    • 1999 – District Court
    • 2003 – Iowa Supreme Court – [Google-Scholar-link]
    • Vanishing Premium, Reasonable Expectations, Class Action Denied
  • Dan Andersen
    • director of the Life and Health Insurance Division, chief actuary of the Iowa Insurance Department and chairman of the Cost Disclosure Task Force of the NAIC
      • 1975 1203 and 1204 – GOV (Senate) – Veterans Insurance Information Disclosure, Richard Stone (D-FL)  —  [BonkNote]  —  [PDF-989p-GooglePlay] 
  • Herbert H. Anderson
    • Iowa Insurance Commissioner
      • Chairman of the National Association of Insurance Commissioners’ Task Force on Life Insurance Cost Comparison
      • 1977 0628 and 0630 – GOV (Senate) – Disclosure of Insurance Policy Information to Veterans, Richard Stone (D-FL) – [PDF-415p-GooglePlay]
  • Bruce Foudree
  • William H. Huff III
    • 1971-1976 – Iowa Insurance Commissioner
      • 1975 1203 and 1204 – GOV (Senate) – Veterans Insurance Information Disclosure, Richard Stone (D-FL)  —  [BonkNote]
  • William (Bill) D. Hager
    • 1986 -1990 – Iowa Insurance Commissioner, 7/1/1986 to 6/1/1990
  • David Lyons
    • 1990-1994 – Iowa Insurance Commissioner, 6/1/1990 to 7/1/1994
      • 1993 0525 – GOV (Senate) – When Will Policyholders Be Given The Truth About Life Insurance?, Howard Metzenbaum (D-OH)  —  [BonkNote]
      • Chairman of the Disclosure Task Force of the NAIC
  • Doug Ommen
  • Therese ‘Terri’ M. Vaughan
    • 1994-2004 – Iowa Insurance Commissioner, 8/1/1994 to 12/31/2004
    • 2009-2012 – NAIC CEO 
    • AIG Board
  • Mike Yanacheak
    • Chief Actuary – Iowa
    • Life Insurance and Annuities (A) Committee
    • Life Insurance Illustration Issues (A) Working Group
    • IUL Illustration (A) Subgroup of the Life Actuarial (A) Task Force
  • Cindy Axne – (D-IA)
    • US House
  • Bruce Braley – (D-IA)
    • 2007-2015 – US House
  • Chuck Grassley – (R-IA)
    • 1980-Current (as of 2023) – US Senate 
      • 1993 0525 –  GOV (Senate) – When Will Policyholders Be Given The Truth About Life Insurance?, Senator Howard Metzenbaum (D-OH)  —  [BonkNote]
  • Harold E. Hughes – (D-IA)
    • 1963-1969 – Governor of Iowa 
    • 1969-1975 – US Senate 
  • Jim Leach – (R-IA)
    • 1977-2007 – US House
      1995-2001 – House Financial Services Committee, Chair
  • Chantelle Smith
    • 2000-2023 – Iowa Assistant Attorney General 
    • 2019 1021 – InsuranceJournal –  Financial, Legal Advisors Scamming Elderly Has Become Big Business, By Nick Leibe – [link]
      • Chantelle Smith, the Iowa assistant attorney general, started pursuing financial advisers, securities brokers and insurance agents for exploiting older people about two decades ago. She said that elder financial abuse is more than a legal issue. It’s societal.
    • 2022 1230 – Iowa Capital Dispatch – New state attorney general seeks 19 resignations among staff, by Jared Strong – [link]
      • “It has been my great honor serving the people of the state of Iowa – particularly the most vulnerable amongst us including older Iowans, veterans, and other at-risk individuals – and am disappointed that I was asked to resign,” wrote Chantelle Smith, an assistant attorney general whose focus is elder abuse and who has been employed by the office since about 2000, according to state records.

IOWA-Appointed, at the Pleasure of the Governor; 4-Year Term

Commissioner of Insurance Doug Ommen 1/1/2017 incumbent
Interim Commissioner of Insurance Doug Ommen 12/23/2016 1/1/2017 0 1
Commissioner of Insurance Nick Gerhart 2/1/2013 12/23/2016 3 10
Commissioner of Insurance Susan E. Voss 1/1/2005 1/31/2013 8 0
Commissioner of Insurance Therese ‘Terri’ M. Vaughan 8/1/1994 12/31/2004 10 4
Commissioner of Insurance David J. Lyons 11/1/1990 7/1/1994 3 8
Acting Commissioner of Insurance David J. Lyons 6/1/1990 11/1/1990 0 5
Commissioner of Insurance William D. Hager 7/1/1986 6/1/1990 3 11
Commissioner of Insurance Fred M. Haskins 5/19/1986 6/30/1986 0 1
Commissioner of Insurance Bruce W. Foudree 2/11/1980 5/19/1986 6 3
Acting Commissioner of Insurance Richard S. Baldwin 10/8/1979 2/11/1980 0 4
Commissioner of Insurance Herbert W. Anderson 6/17/1976 10/8/1979 3 4
Commissioner of Insurance William H. Huff III 7/1/1971 6/17/1976 4 11
  • 1975 1203 and 1204 – GOV (Senate) – Veterans Insurance Information Disclosure, Senator Richard Stone (D-FL)  —  [BonkNote]
    • (p36) – William H. Huff III (Iowa) – President of NAIC, Statement 
    • (p44) – NAIC – Mr. William H. HUFF III:  If the Society of Actuaries’ research is accurate, and I assume that it is, the additional disclosures really didn’t make much difference in the ranking of how these various ranked in cost I would have a feeling, and I’ve been in this for about years, and we’ve been very active in the complaint area, too, you have two problems with a complicated formula.
      1. If you turn them off, they’re not going to buy anything. They aren’t going to understand it….
      2. ….the other problem, the agent out In the field, and unless he’s carrying a book around with him, I’m not sure that he could explain what all of this is either.
    • Senator STONE:  In other words, your impression on a practical level is that the likelihood of the veteran or the consumer, in this it would be the veteran, would not necessarily be enhanced by the more complicated approach but very well be and would be enhanced as to relevance and as to relative cost by the NAIC model approach ?
    • Mr. HUFF:  We would hope so. I’m also the “blue sky” administrator in Iowa, and we know pretty much that if we don’t get everything that should be disclosed In the first four pages it’s not going to be read, and things that we really want disclosed we put on the front page and put it in big type.
    • Senator Stone: In other words, you’re saving if it’s in the fine print it’s the same thing as not ever being disclosed?
    • Mr. Huff:  That’s right.
    • Senator Stone: If It’s too much fine print nobody reads it.
  • —  Dan Andersen, director of the Life and Health Insurance Division and chief actuary of the Iowa Insurance Department and chairman of the Cost Disclosure Task Force of the NAIC
    • (p43) – ….so we developed a buyer’s guide concept where we want to explain how you use the index.
    • Well, if you explain how to use the index, you ought to explain what the policy is and what choices a buyer has, and we became convinced that the worst decisions that were made weren’t necessary because the buyer bought a high cost policy but that he bought an inappropriate policy for his needs and for his budget.

1975 1203 and 1204 – GOV (Senate) – Veterans Insurance Information Disclosure, Senator Stone (D-FL) – [PDF-989p-GooglePlay]

Missouri

  • John Huff
  • Mary Mealer
  • Joseph Thompson, insurance commissioner of Missouri (?-July 30, 1933)
    • 1936 DECEMBER 1, 2, 3, 7, 8 – GOV (House) – Investigation of Real Estate Bondholders’ Reorganizations – Part 20 (and 21) – Adolph J. Sabath (D-IL)   —   [BonkNote]
  • 2009 0303 – Missouri Insurance Commission – AIG Frequently Asked Questions – [link]
  • (p2) – Chairman Blaine Luetkemeyer (R-MO), I especially want to thank you for participating in our NAIC Commissioner FlyIn earlier this year – your remarks were extremely well received and a great way to kick off two days of meetings with members of the administration and our Congressional delegations. I also want to recognize the Ranking Member, Congressman Cleaver (MO), another fellow Missourian.
  • As you know, your district is home to the NAIC’s central office and we appreciate your continuing support of our organization and state insurance regulation.  

—  John Huff, Director Missouri Department of Insurance, On Behalf of the National Association of Insurance Commissioners – 12p

2015 0929 – GOV (House) – The Impact of Domestic Regulatory Standards on the U.S. Insurance Market, Blaine Luetkemeyer (R-MO)  —  [BonkNote]

  • 2011 05 – Missouri – RE: Examination Report of AGC Life Insurance Company (As of: December 31, 2009 ) – 25p
    • The current full scope financial examination covers the period from January 1, 2007, through December 31, 2009, and was conducted by examiners from the state of Missouri representing the Midwestern Zone of the NAIC with no other zones participating. This examination also included material transactions or events occurring subsequent to December 31, 2009.
  • SUMMARY OF SIGNIFICANT FINDINGS
    • AGC Life Insurance Company operates as a holding company that directly owns six domestic life insurance subsidiaries and one foreign subsidiary.
    • The domestic subsidiaries lost $17.5 billion in 2008 as a result of their participation in a securities lending program sponsored by its upstream parent, American International Group, lnc. (”AIG”).
    • AIG made capital contributions in 2008 to substantially offset these securities lending losses from funds primarily obtained from the U.S. government.
    • However the subsidiaries incurred significant damage to their reputations because of their association with AIG and this reputational damage resulted in a substantial loss of business that may be considered a threat to their future level of profitability.
    • As a result the subsidiaries could be dependent on additional capital contributions from AlG to maintain their capital positions.
  • Mr. Crume: (Staff Actuary) – re: the Missouri State Life Insurance Co. of St. Louis, Mo.
    • This company had approximately one billion of life insurance in force when it failed.
    • It held approximately $160,000,000 of premium payers and widows’ and orphans’ savings funds.
    • This is the largest serious failure of any old-line legal-reserve life-insurance company in the history of this country.
    • Its failure was preceded by manipulations involving numerous other insurance companies that leave one amazed when recited. (p4)

1936 December 1, 2, 3, 7, 8 – GOV (House) – Investigation of Real Estate Bondholders’ Reorganizations – Part 20 – Adolph J. Sabath (D-IL)   —   [BonkNote]

  • 3. Report of Subgroup on Unfair Trade Practices Act, Brad Connor (Mo.), Chair of the Subgroup on the Unfair Trade Practices Act.
    • presented his written report dated Oct. 11, 1990 (Attachment Eight-B, p221).
    • He reported that he had been given further direction from the NAIC leadership regarding the pursuit of …. the practice of agents “low-balling” insurance premium quotations.
    • 3. The subgroup will continue to investigate and suggest potential remedies or articulate currently available powers to more effectively deal with the practice of agents low-balling insurance premium quotations.

1991-1A, NAIC Proceedings

  • 1972 0724 – Federal Register – [38p]
  • William L. HUNGATE (D-MO-House): Mr. Speaker, the State of Pennsylvania is taking what may be a leader’s role in analyzing State insurance problems.
    • The following article should be of interest to all who purchase life insurance:
    • A national shopper’s guide for life insurance shows that some major companies charge more than twice as much as others for similar policies, and that some of the best known firms charge the most for coverage.
    • NP – Variation in Surety Cost Charges Can Double From Firm to Firm, By Bob Woodward
      • A national shopper’s guide for life insurance shows that some major companies charge more than twice as much as others for similar policies, and that some of the best known firms charge the most for coverage.
      • Among the life insurance firms doing business in the Washington area, for example, average annual cost for the same $10,000 straight life policy from Connecticut Mutual Life is $22.40 compared to $53.10 a year from Travelers Insurance Co.
        • This means that over 20 years it takes to pay off such a policy, the Counnecticut Mutual subscriber would pay $448, compared to $1,062 paid by a subscriber of Travelers. (p25109)

California

  • Life Insurance Guide – [link]
    • Universal Life:  The policy can also be structured to operate like term insurance.
  • 1996 0703 – California – Assembly Bill 3234 (Knowles) Hearing Date: July 3, 1996, SENATE COMMITTEE ON INSURANCE, Senator Herschel Rosenthal, Chair – [link] 
    • LC – Walker v Life Insurance Company of the Southwest  —  [BonkNote]
  • DFPI – Department of Financial Protection and Innovation
  • John Montgomery commented on the flexible premium universal life policy and the fact that it is not really a whole life policy, but a term policy until the premium is actually paid.
    • John Montgomery Regulator/Actuary – California

1988-2, NAIC Proc.

  • Commissioner Robert Wilcox also spoke favorably of a new provision in California where the illustration of non-guaranteed elements must show: the lesser of:
    • the amount being currently paid,
    • the amount the company is currently earning,
    • or the amount the company can expect to earn.

1994-3, NAIC Proceedings

  • The vast majority of the Department of Insurance’s cases are brought in an administrative as opposed to judicial forum.
  • The Department’s administrative authority to obtain remedies for individual consumers is more limited than that of a plaintiff in a UCL lawsuit with respect to monetary and injunctive relief.
  • Further, the existence of private plaintiffs’ lawsuits helps forward the course of the law more effectively than would be the case if the only adjudications were those proceedings, largely administrative, initiated by the Commissioner.

2015 – LC – Brief of the State of California and the California Insurance  Commissioner as Amicus Curiae in Support of Plaintiffs, Walker vs Life Insurance Company of the Southwest. Case: 15-55809, 12/16/2015, ID: 9795445, DktEntry: 24, p27-28

  • The vast majority of the Department of Insurance’s cases are brought in an administrative as opposed to judicial forum.
  • The Department’s administrative authority to obtain remedies for individual consumers is more limited than that of a plaintiff in a UCL lawsuit with respect to monetary and injunctive relief.
  • Further, the existence of private plaintiffs’ lawsuits helps forward the course of the law more effectively than would be the case if the only adjudications were those proceedings, largely administrative, initiated by the Commissioner.

2015 – LC – Brief of the State of California and the California Insurance  Commissioner as Amicus Curiae in Support of Plaintiffs, Walker vs Life Insurance Company of the Southwest. Case: 15-55809, 12/16/2015, ID: 9795445, DktEntry: 24, p27-28

  • Daphne Bartlett
    • Society of Actuaries
      • 1988 – SOA – Dear Editor: Life Insurance Illustrations: A Call to Action, by Daphne Barlett, Society of Actuaries – 2p
      • 1991 – SOA – Address of the President, Daphne D. Bartlett, Society of Actuaries – 6p
    • California Insurance Department
  • John Garamendi (D-CA)
    • 1991-1995 – California Insurance Commissioner (First elected)
      • ELIC – Executive Life Insurance Company 
    • 2003-2007 – California Insurance Commissioner
    • 2009-Current (as of 2023) – US House, California
  • Darrell Issa (R-CA)
    • 2001-2019,
      • 2011-2015 – Chair – House Oversight and Government Reform Committee, January 2011 to January 2015
    • 2021-Current (as of 2023) – US House, California
  • Wesley J. Kinder
    • 1975-1980 – California Insurance Commissioner
      • 1980-2, Vice-Presidential Address, re: FTC Report
        • The FTC efforts to deter state action on life insurance cost disclosure, under the guise of assisting the states, when in fact, the game plan was to initiate an FTC regulation on the basis that the states failed to act, might be described as a federal fraud.
        • 1979 – FTC – Report – Life Insurance Cost Disclosure, Federal Trade Commission – 460p
  • Angele Khachadour
    • Miller & Daar, Mill Valley, CA
      • 1981 – SOA – The Life Insurance Business—The View of Consumerists (rsa81v7n17), Daphne Bartlett – Moderator, Society of Actuaries – 16p
    • California Insurance Department
  • Jodi Lerner – California Insurance Department
  • John Montgomery – Regulator/Actuary – California
  • Hal Phillips – California Insurance Department, Senior Life Actuary 
    • aka William H. Phillips, W. Harold Phillips
    • 1998 – SOA – Current Issues in Sales Illustrations, Society of Actuaries – 26p
      • I’m going to have you listen for a few minutes.
      • I have a theory that the difficulties the life industry faced with illustrations, including the billions lost in lawsuits, stemmed from the lack of understanding of what a scale of illustrated dividends or nonguaranteed elements is and is not.
  • John Moss (D-CA)
    • 1953-1978 – US House
    • 1978 – GOV (House) – Life Insurance Marketing and Cost Disclosure, John Moss (D-CA)  —  [BonkNote]
    • 1978 12 – GOV (House Report) – Life Insurance Marketing and Cost Disclosure Report Together with Dissenting Views, John Moss (D-CA)  —  [BonkNote] 
  • Mark Rakich
    • 1993 0525 –  GOV (Senate) – When Will Policyholders Be Given The Truth About Life Insurance?, Howard Metzenbaum (D-OH)  —  [BonkNote]
  • Ed Royce (R-CA)
    • 1982-1993 – California State Senate 
    • 1993-2019 – US House, California
    • 2012 – Ed Royce Letter RE NAIC – 4p
  • Karl L. Rubenstein
    • 1988 – Special Deputy Insurance Commissioner, State of California
    • We cannot play word games with policyholder money. (p74)
      • 1988 0914 and 0915 – GOV (House) – Insurance Company Failures, John Dingell (D-MI)  —  [BonkNote]
  • Brad Sherman (D-CA)
    • 1997-Current (as of 2023) – US House, California
  • Pete Stark (D-CA)
    • 1973-2013 – US House, California
  • Sheldon Summers
    • California Insurance Commission
  • Henry Waxman (D-CA)
    • 1975-2015 – US House, California
      • GOV (House-OGR) – The Causes and Effects of the AIG Bailout- AIG Bailout Oversight Hearing, Henry Waxman (D-CA)  —  [BonkNote]
  • [Insurance Commissioners]
    • Current – Ricardo Lara
    • 2003-2007 – John Garamendi
    • 1991-1995 – John Garamendi
    • 1986-1991 – Roxanne Gillespie
    • 1975-1980 – Wesley J. Kinder
      • 1980-2, NAIC Proceedings – Wesley J. Kinder, California Insurance Commissioner, Vice-Presidential Address – re: FTC Report
        • The FTC efforts to deter state action on life insurance cost disclosure, under the guise of assisting the states, when in fact, the game plan was to initiate an FTC regulation on the basis that the states failed to act, might be described as a federal fraud.
        • 1979 – FTC – Report – Life Insurance Cost Disclosure, Federal Trade Commission – 460p

wikipedia.org/wiki/California_Insurance_Commissioner

  • One regulator [W. Harold Phillips, Senior Life Actuary – CA] summarized the problem in his department (Attachment Two-A):
    • Misleading illustrations are structured as inducements to buy rather than helpful tools to understand the workings of the product or as a comparison between products of competing companies. 
    • In addition, many purchasers as well as agents do not understand what an illustration is and what it is not.
    • Most agents, companies and actuaries agree that there is a problem and that something needs to be done.
    • The industry appears to be in gridlock on the matter.
    • Current regulation of illustrations is very weak. Companies and agents can do pretty much as they please.

1993 Proc. IB 789 – LIfe Insurance Illustrations Model Regulation – Proceeding Citations

  • Mr. Wright asked the California Department attendees to provide more information on the ledger illustration bill they had developed.
    • Harold Phillips (Calif.) reported that they had developed the draft after identifying problems and trying to fashion remedies.
    • He said they had received more than 20 comments, mostly favorable.
    • Mr. Wright suggested that the California proposal was a good beginning, and would provoke people to think and to discuss the issues.
    • Roger Strauss (Iowa) asked if the legislation had passed in California, and Mr. Phillips explained that this was just a discussion document and had not been submitted to the legislature.
    • John Montgomery (Calif.) said the decision had been made to postpone the introduction and wait to see what the NAIC would do.

1993-3, NAIC Proceedings

  • Insurance Commissioner Ricardo Lara 1/7/2019 incumbent
  • Insurance Commissioner Dave Jones 1/3/2011 1/6/2019 8 0
  • Insurance Commissioner Steve Poizner 1/8/2007 1/3/2011 4 0
  • Insurance Commissioner John Garamendi 1/6/2003 1/8/2007 4 0
  • Insurance Commissioner Harry W. Low 9/18/2000 1/6/2003 2 4
  • Acting Insurance Commissioner J. Clark Kelso 6/10/2000 9/18/2000 0 3
    Insurance Commissioner Charles Quackenbush 1/2/1995 6/10/2000 5 5
  • Insurance Commissioner John Garamendi 1/1/1991 1/2/1995 4 0
  • Insurance Commissioner Roxani Gillespie 7/1/1986 1/1/1991 4 6
  • California State Assembly – Committee on Insurance – [link]
  • AB 1209 Nazarian Long-term care benefits
    • This bill prohibits insurers from using rate schedules based on attained age when offering long-term care insurance policies and life insurance policies that provide long-term care benefits (“hybrid policies”); revises the rules that apply to hybrid policies in regards to policy loans and withdrawals; and requires insurers to provide a disclosure to applicants for hybrid policies built on universal life insurance policies about the risk of lapse. Chapter 625

sfa.senate.ca.gov/sites/sfa.senate.ca.gov/files/2019_digest_final_updated.pdf

  • Orange County

Florida

  • Kevin McCarty
    • 2003-2016 – Florida Insurance Commissioner, 4/9/2003 4/29/2016
  • Bill Nelson (D-FL)
    • 1995-2000 – Florida Insurance Commissioner – 1/1/1995 12/31/2000 
    • 2001-2019 – US Senate
      • 2003 1022 – GOV (Senate) – Federal Involvement in the Regulation of the Insurance Industry, (CSPAN) – Insurance Industry Regulation – [PDF-147,  VIDEO-CSPAN]
  • Dan Mica (D-FL)
    • 1979-1989 – US House
    • 1989-1996 – ACLI, executive vice president specializing in Federal Affairs – 
    • 1996-2010 – CUNA CEO 
  • John Mica (R-FL)
    • 1993-2017 – US House
  • Claude Pepper (D-FL)
    • 1936-1951 – US Senate
    • 1963-1989 – US House – Miami area
  • Bill Posey (R-FL)
    • 2009-Current (as of 2023) – US House
      • Financial Services, Science, Space, and Technology
  • Dennis Ross  (R-FL)
    • 2011-2019 – US House
  • Richard (Dick) Stone  (D-FL)
    • 1975-1980 – US Senator
    • 1975 1203 and 1204 – GOV (Senate) – Veterans Insurance Information Disclosure, Dick Stone (D-FL)  —  [BonkNote]
  • Universal life insurance is a combination of a term life policy and the ability to accumulate cash value.

flsenate.gov/Session/Bill/2013/242/Analyses/2013s0242.pre.bi.PDF

  • Insurance Commissioner David Altmaier 5/2/2016 incumbent
  • Insurance Commissioner Kevin M. McCarty 4/9/2003 4/29/2016 13 0
  • Insurance Commissioner Tom Gallagher 1/1/2001 4/9/2003 2 3
  • Insurance Commissioner Clarence William ‘Bill’ Nelson 1/1/1995 12/31/2000 5 11
  • Insurance Commissioner Tom Gallagher 1/1/1989 1/1/1995 6 0
  • Insurance Commissioner Bill Gunter 11/1/1976 1/1/1989 12 2
  • Insurance Commissioner Philip F. Ashler 1/1/1976 11/1/1976 0 11

NOLHGA – National Organization of Life and Health Insurance Guaranty Associations

  • These events, of course, were the reasons that NOLHGA was created (under the auspices of the ACLI).

2006 0803 – DOTT – Remarks of David G. Nason Deputy Assistant Secretary, Financial Institutions Policy U.S. Department of the Treasury Before the National Organization of Life and Health Insurance, Department of the Treasury – [link]

  • (p16) – Willis B. Howard, Jr., NOLHGA – National Organization of Life and Health Insurance Guaranty Associations:
    • I’d like to respond briefly to my honorable friend, Commissioner Bartlett.
    • Dwight, the guarantee association system works, and it works well.
  • Dwight K. Bartlett III, Maryland Insurance Commissioner:
    • Are you going to tell me, Bill, in all honesty that you really believe that the policyholders of Executive Life and Mutual Benefit Life have been well-served?
    • For example, with Mutual Benefit, if you opted out of that rehabilitation plan you get, as I recall, 55 cents on the dollar of your account value.
      • If you opt into the plan, you agreed to subject yourself to a moratorium period, which means you do not get full access to the cash values of your policy until the next century.
    • Are you going to say that’s meaningful coverage for those policyholders?
    • ⇒  I think that’s ridiculous.

1994 – SOA – Valuation Actuary – Symposium Proceedings – Session 1 – Introduction and Overview, Society of Actuaries – 110p

  • In the early 1990s, there were a number of large insolvencies

—  Willis B. Howard Jr., NOLHGA – National Organization of Life and Health Insurance Guaranty Associations

1998 – SOA – Once in a Hundred Years, rsa98v24n393pd – Society of Actuaries – 22p

  • Finally, I have mentioned the NOLHGA.
  • Quite frankly, I still don’t know what to make about this, but there’s no question that they have had a substantial impact on the Executive Life Insurance Company transaction.
  • I have no idea how that’s going to play out, but the talking process in Executive Life has been significantly impacted by NOLHGA.
  • And the last I heard, they are to be considered a serious buyer.
  • So in rehabilitation situations, they are a force to be reckoned with.

—  Patrick S. Baird, Vice President and Chief Tax Officer of Aegon U.S.A., Inc.

1991 – SOA – What is a Life Company Worth? rsa91v17n4b12 – Society of Actuaries – 24p 

1990s

  • 1991 0227, 0507, 0509 and 0523 – GOV (House) – Insurance Company Solvency, (CSPAN) Insurance Company Insolvencies, Cardiss Collins (D-IL)  —  [BonkNote]
  • 1993 0629 – GOV (Senate) – NOLHGA Bails Out a Healthy Insurance Company: Examining the Current System The State Guaranty Fund System Uses to Pay Off Insurance Policyholders, re: Security Benefit Life Insurance Company –
  • 1993 0629 – GOV (Senate) – NOLHGA Bails Out a Healthy Insurance Company: Examining the Current System The State Guaranty Fund System Uses to Pay Off Insurance Policyholders, re: Security Benefit Life Insurance Company
  • 1993 0629 – GOV – (Antitrust, Monopolies and Business Rights), State Insurance Guaranty Funds: Controlled by the Industry or by the Public? <Bonk: Can’t Find- Same As
    • 1993 0629 – GOV (Senate) – NOLHGA Bails Out a Healthy Insurance Company: Examining the Current System The State Guaranty Fund System Uses to Pay Off Insurance Policyholders, re: Security Benefit Life Insurance Company
  • 1995-1, NAIC Proceedings – Testimony from Jack H. Blaine, President National Organization of Life and Health Insurance Guaranty Associations Public Hearing on Policyholder Protection in Insurance Company Failures – September 11, 1995 – p
  • 1995-1, NAIC Proceedings – Guaranty Fund Issues Working Group B of the Insolvency (EX5) Subcommittee – September 11,1995

2000s

  • 2009 – NOLHGA – NOLHGA, the Life and Health Insurance Guaranty System, and the Financial Crisis of 2008-2009, Peter G. Gallanis (President, NOLHGA) – 31p

2010s

  • 2011 1216 – NOLHGA – Joint Comments of NOLHGA and NCIGF in Response to FIO’S Request for Public Input – 51p
  • 2012 02 – NOLHGA Journal – 16p
    • Second, the collapse of AIG’s securities lending program was an effect, not a cause, of AIG’s failure
  • 2014 10 – NOLHGA Journal – 24p
    • (p2) – Insurers, Systemic Risk, and the Debate Over Regulatory and Resolution Policy. This column is the first of a two-part discussion; the conclusion will follow in the next issue of the NOLHGA Journal, President’s Column by Peter G. Gallanis 
    • (p4-) – Harvey Miller discusses the Lehman Brothers bankruptcy, the challenges in unwinding a multinational company, and how Dodd-Frank doesn’t really end “too big to fail.”
    • Eric Dinallo, Ben Bernanke
  • 2016 – NOLHGA – NOLHGA Report Comparing The Federal Pension System and the State Insurance System – 68p
  • FRANKLIN PROTECTIVE LIFE Insurance Company – Martin Frankel
    • mid.ms.gov/companies/pdf/fplicliquidorder.pdf
      • John Hackney, President of the Company, has advised that he invested the Company’s assets in bonds through the broker known to him as LNS, Inc. Petitioners have confirmed that records of the Company reflect these investments, however, LNS, Inc. and the money invested in bonds throughLNS, Inc. is missing. With total liabilities of$21,857.487, and the missing bonds, the Company is insolvent.

States and Territories

  • REGULATION FROM A LEGISLATOR’S PERSPECTIVE
  • I hope to give you some insight into state government regulation and the way we feel about the life insurance industry.
  • As a state legislator, I have never had any serious problem with the life insurance industry.
  • One reason for this is because life insurance is strictly voluntary.
    • This is quite different from casualty insurance which has mandated coverages.
    • If a person buys a life insurance policy, he does it on his own free will and this takes us off the hook.
  • Second of all, life insurance has always served a very important purpose in this country. 

—  Warren D. Arthur, IV. (not a member of the Society, is a state representative in the South Carolina legislature. 

1981 – SOA – Changes in Life Insurance Laws and Regulations: What Do We Need and How Can We Get It?, Society of Actuaries – 18p

  • The Council of State Governments (CSG), National Conference of Insurance Legislators (NCOIL), and National Conference of State Legislatures (NCSL)-organizations of state officials devoted to sound insurance public policy-are writing to tell you why we believe that the protection of insurance consumers should continue to be based exclusively at the state level.

2009 0901 – Letter – NCOIL,CSG, NCSL to GOV Dodd, Frank, Shelby, Bachus – 2p

Minnesota

  • Fred Andersen
    • Minnesota Insurance Commission – Actuary
      • Chair – NAIC IULSG – 
  • Thomas H. Borman,
    • Former Commissioner of Commerce, State of Minnesota 
    • 1991 0717 – Testimony – Thomas H. Borman, Partner, Maslon, Edelman, Borman and Brand, Former Commissioner of Commerce, State of Minnesota – 9p
      • 1991 0717 and 0724 – GOV (House) – Life Insurance Solvency Issues, (CSPAN) – Insurance Insolvencies, (NAIC) – The Impact of Junk Bonds, Real Estate and Mortgages on the Life Insurance Industry – Cardiss Collins (D-IL)  —   [BonkNote]
  • Cyrus E. Magnusson
    • 1959-1966 – Commissioner of Insurance for the State of Minnesota 
    • 1966 – Annual Report of the Attorney General of the United States – [PDF-517p-GooglePlay]
      • An indictment was returned in the District of Minnesota on October 29, 1965, charging Philip Kitzer, Sr., his two sons, Cyrus E. Magnusson, Commissioner of Insurance for the State of Minnesota, and others, with a scheme to loot the assets of several high risk automobile liability insurance companies, leaving the companies without funds to pay claimants and protect policyholders
    •  1967 0725 – NYT – 13 Are Acquitted in Insurance Case – [link]
  • Walter Mondale (D-MN)
    • 1964-1976 – US Senator
    • 1977-1981 – United States Vice President
  • John Robinson
    • Minnesota Insurance Commission – Actuary
    • NAIC IULSG
  • Federal Government
  • Betty Louise McCollum
    • the U.S. Representative for Minnesota’s 4th congressional district, serving since 2001.
    • She is a member of the Democratic-Farmer-Labor Party (DFL).
    • McCollum’s district centers on St. Paul, Minnesota’s capital city.
    • House Session
      • 5:27:00 (Start) / 5:28:30 (McCollum) – Exchange with Virginia Foxx (North Carolina).

Texas

  • 2018 04 - Texas - Life Insurance Products with Guaranteed and Non-Guaranteed Elements - 2p
  • Universal Life
  • Universal life insurance is more flexible than whole life.
    • You can change the amount of your premiums and death benefit.
    • But any changes you make could affect how long your coverage lasts.
  • If your premiums are lower than the cost of insurance, the difference is taken from the cash value.
  • If the cash value reaches zero, your policy could lapse.
  • The company will send you a report each year showing your cash value and how long the policy might last.
    • The estimate is based on the cash value amount, the cost of insurance, and other factors.
    • Review it carefully. You might need to pay more in premiums to keep the policy in effect until the maturity date.

2026 (as of) - Life insurance guide - tdi.texas.gov/pubs/consumer/cb018.html

  • Ted Becker - Actuary
  • Lloyd Bentsen (D-TX)
    • 1962 - President of Lincoln Liberty Life Insurance Company (Time-?)
      • Lincoln Liberty Life Insurance, a subsidiary of Lincoln Consolidated Consolidated American Life Insurance Co. (CALICO).
    • 1971-1993 - US Senator - Texas, January 3, 1971 - January 20, 1993
    • 1993-1994 - Secretary of the Treasury, January 20, 1993 - December 22, 1994 
  • Michael Burgess (R-TX)
    • 2003-Current (as of 2023) - US House
  • James Collins (R-TX)
  • J. Robert Hunter
    • 1993-1995 - Texas Insurance Commissioner - 11/1/1993 1/1/1995 1 2
  • Randy Neugebauer (R-TX)
    • 2003-2017 - US House
  • John Osorio
    • 1955-1957 - Texas Insurance Commissioner
  • Doug Slape
    • Chief Deputy Commissioner of the Texas Department of Insurance
    • 2008 Financial Crisis, AIG-Securities Lending, Life Insurance Companies
  • E. J. Voorhis
    • 1977-1982 - Texas Insurance Commissioner - 6/1/1977 10/1/1982 5 4

New Jersey

  • Tom Considine
    • 2010-2012 – New Jersey Insurance Commissioner
    • ? – Current (as of 2023) – CEO – NCOIL, National Council of Insurance Legislators
  • Paul DeAngelo
  • James J. Florio – (D-NJ)
    • 1975-1990 – US House
      • 1987 0701 / 0729 and 1014 – GOV (House) – Developments In State Insurance Regulation, James J. Florio (D-NJ)  —  [BonkNote]
  • Alfred N. Guertin
    • actuary of the New Jersey Insurance Department
    • NAIC’s Committee to Study Nonforfeiture Benefits and Related Matters
      • The report, known as the Guertin Committee Report
  • William (Bill) White, Chief Actuary
  • 1990s – Prudential – Multi-State Task Force 
  • 1988 – New Jersey – New Jersey Life Insurance Buyer’s Guide, i591988a – 20p-link
  • 1998 1231 – New Jersey Regulators, re: MetLife – Report of The Metropolitan Life Insurance Companies Located In New York, New York As Of December 31, 1998, By Examiners of The State of New Jersey Department of Banking And Insurance Division of Enforcement And Consumer Protection Market Conduct Examination Unit – 44p
  • <WishList>
    • 1982 – New Jersey – Universal/Flexible Factor: life insurance informational hearing.
      • Department of Insurance, New Jersey. Department of Banking & Insurance
      • [Bonk: the NAIC also has it in their Database, but it is currently available for viewing (as of 2023)]
  • Bill White, chief actuary, New Jersey, reported on their special project pertaining to universal life.
    • Their commissioner, on June 25, 1982, declared an 81-day moratorium on “Universal-Flexible Factor” type of policies.
    • His staff was directed to:
      • (1) study the matter and issue a position paper on the subject;
      • (2) conduct public hearings on March 10-11;
      • (3) terminate the moratorium April 16 with the publishing of a set of guidelines. Reports and results have been mailed to each insurance department.
    • Some of the questions New Jersey conveyed included:
      • (1) are these policies participating or non-participating;
      • (2) the “Bait and Switch” potential;
      • (3) disclosure;
      • (4) Federal Income Tax aspects;
      • (5) non-forfeiture values;
      • (6) replacement problems.
    • The concern was not just with the “twisting” replacements, but was the impact of justified replacements on the solvency of replaced companies.

1982-2, NAIC Proc.

state.nj.us/dobi/division_consumers/insurance/life.htm

All life insurance policies are not the same.

Some give coverage for your lifetime and others cover you for a specific number of years. Some build up cash values and others do not.

There are two basic types of life insurance: term insurance and permanent insurance.

  1. Term insurance generally has lower premiums in the early years, but does not build up cash values that you can use in the future.
    • It covers you for a term of one or more years, and pays a death benefit only if you die in that term.
  2. Permanent insurance (such as universal life, variable universal life and whole life) provides long-term financial protection.
    • These policies include both a death benefit and, in some cases, cash savings.
    • Because of the savings element, premiums tend to be higher than term insurance premiums.