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Historical Performance NAIC – IULISG – IUL Illustration Subgroup Some have suggested that historical experience should replace current scale as the basis for describing how the not guaranteed elements of the policy can operate. Substitution of historical performance for current scale would not solve many of the problems related to sales illustrations. Since it is…

Collaboration Q: Who Can Explain How Life Insurance Policies Work? naic.softlinkillumin.net/knowledgebase/#/home Life Insurance Illustrations Model Regulation Research – [link] Finding comment letters/discussion/attachments in Proceedings – [link] Model Regulation 582: Life Insurance Illustrations (Free Look) – [link] References in the Proceedings – [link] But nowhere has there been a serious, full dress attempt to re-define the modern American insurance transaction as…

Sensitivity Analysis Mr. Nepple said that in his opinion a sensitivity analysis added confusion, but he did not see that it was essential for consumers to understand standardized assumptions. Mr. Nepple asked the group to consider further the issue of a sensitivity analysis. 1994-4, NAIC Proceedings

Unfair Trade Practices Subgroup on the Unfair Trade Practices Act – NAIC Model Regulation for Complaint Records to be Maintained Pursuant to the NAIC Unfair Trade Practices Act (#884) GOV – NAIC – Strong Unfair Trade Law 1988 – LR – Consumer Protection – The Unfair Trade Practices Act and the Insurance Code: Does Per…

Unauthorized Practice of Law “National Conference of Lawyers and Life Insurance Companies” ABA – American Bar Association Unauthorized Practice of Law 1951 – LR – The Bar and the Unauthorized Practice of Law: A Survey – 13p 1955 – LR – The Unauthorized Practice Controversy, A Struggle Among Power Groups, Quintin Johnstone – 57p 1964 – LR…

Lapse-Supported Glenn Daily is particularly irate about what the industry calls “lapse supported pricing,” which is used in illustrations to show higher cash values in later years. Actuaries who use this technique know that only half the people who buy policies will still have them after seven years. After 20 years, only about 25 percent…

Cost of Insurance Maybe we can jiggle a bit with our cost of insurance rates. — Michael R. Tuohy 1985 – SOA -Variable Life Insurnce in Canada and the United States, Society of Actuaries – 24p SOA – Agent – I didn’t know Costs Came Out Commissioner Lyons reported that the working group feels strongly…

Annual Statement This can also allow for a low first-year target premium. On the other side, however, it may cause some difficulties in terms of the annual reporting to the policyholder if, indeed, the policyholder really pays attention to the statement sent to him. — Christian J. DesRochers 1983 – SOA – Universal Life (RSA83V9N212), Society…

Sales Process The agent, as a result of not understanding the illustration, may misrepresent the product to the consumer. — Judy Faucett 1992 – SOA – Life Insurance Sales Illustrations, Society of Actuaries – 16p Mr. Wright said the Society of Actuaries report referred to the fact that companies said they had no control over what agents…

Programming For descriptions of conventional life insurance programing, see Dan M. McGill, Life Insurance (Homewood, Ill.: Richard D. Irwin, Inc., 1959), pp. 649-60; and Robert l. Mehr and Robert W. Osler, Modern Life Insurance (3d ed.; New York: The Macmillan co., 1961 pp. 337-90. 1964 – AP – Dynamic Life Insurance Programing, by Joseph M. Belth, The Journal…