Words – Page 16 – [BonkNote]

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 –…

VAR – Value at Risk Summary: Value-at-risk has received a great deal of attention in recent years as an effective risk management concept. This session examines the basics, including: What is it and how does it work? How much and how is it being used? What are the pros and cons relative to other risk…

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…

Service First of all, I believe there is cause for concern arising from the repeated inferences, both in this paper and elsewhere, that the agent is somehow obligated to provide “service” long after the sale on the policies that he has sold. Certainly the insurer has an obligation to provide such service, but I cannot agree with…

Surrender Values Development of Life Insurance Surrender Values its the United States, J. David Cummins, S.S. Huebner Foundation, for Insurance Education (p1177) – By Mr. MCGUIRE: A. I have parted with two or three life insurance policies. Q. Sell them for the amount of the loan, or at a discount? A. at the price the…

Orphaned Policyholders C. What methods are used for providing service to policyholders, particularly on orphaned business? 1966 – DIGEST OF REPORTS ON TOPICS OF CURRENT INTEREST AGENCY MATTERS, Society of Actuaries

Premium Pattern The agent and prospect have the ability to choose almost any pattern of benefits and premiums. No longer is the sale limited to one of several fixed plans of insurance from a ratebook. 1991-1992 – FINAL REPORT* OF THE TASK FORCE FOR RESEARCH ON LIFE INSURANCE SALES ILLUSTRATIONS – 142p, Society of Actuaries For another problem, consider…

Policy Changes 1975 0619 – NYT – With “Life-Cycle” Insurance Policies Coverage May Be Changed With Needs (Adjustable Life), by Leonard Sloane – [link-Paywall Free] Policy Changes Have any companies considered restricting policy changes because of increased administrative difficulties due to automation? Is the cost of policy changes out of proportion to their business value?…