Words – Page 28 – [BonkNote]

Expense Allowance Elizabeth MacGowan – Trial – Walker v Life Insurance Company of the Southwest The Model Regulation specifies that the expense allowance shall be that for level premium, level death benefit endowment insurance at the maturity date. The rationale for choosing a “whole life” expense allowance of this sort was thought out carefully. It…

Valuation Actuary SOA – Committee on Life Insurance Company Valuation Principles – 1980s As Chris indicated earlier, pricing actuaries are in a unique position relative to valuation actuaries since valuation actuaries spend their time monitoring reality. Pricing actuaries, along with actuaries who work in the asset/liability modeling (ALM) area, can influence reality. Their actions are…

R-Ratio / R-Factor Conseco, Garn Lawsuit, R-Factor In essence, the model regulation <Universal Life Model Regulation> assumes that at issue, all universal life policies are permanent plans. The r-ratio is meant to measure the extent to which the policy is “on track” as a permanent plan. Statutory Valuation of Individual Life and Annuity Contracts |…

Price Cost – Index Price-Fixing Pricing Pricing Assumptions Until the buyer understands how the product works, attempts to compare price are essentially meaningless. 1972 – SOA – Life Insurance and the Buyer by Anna Rappaport, Society of Actuaries – 2p-Article I believe that there is an urgent need for the life insurance industry to answer the accusations of its critics who…

Target Premium Target Premium – Walker v LSW If your training process for your agents is to sell at target premium, for example, and target premium carries the policy to maturity at a 7 percent rate, if you’re only crediting 6, it’s not making it there. So keep an eye on how you’re training your…

Planned Premium Planned Premium For UL and VUL Plans, this is the Amount of Annual Premium that the Policyholder Plans to pay at Issue. Typically this is the Billed Amount. For Whole Life and Term Plans, this is the Annual Required Premium. 2006 – SOA – Minimal Policyholder Behavior Format, Society of Actuaries – 4p…

Policy Mechanics / Cash flow / Works Until the buyer understands how the product works, attempts to compare price are essentially meaningless. 1972 – SOA – Life Insurance and the Buyer, by Anna Rappaport, Society of Actuaries – 2p-Article Buyers of life insurance are entitled to descriptions of their policies and how they work. But…

Benefits The main concern was that an unsophisticated buyer purchased a policy and did not know what the coverages, benefits and limitations were. 1988 0603 – Universal & Other New Plans (A) Task Force – NAIC – Attachment Two 1988-2, NAIC Proc. Nonforfeiture Premium Benefit Pattern – Examples Benefits – ACLI Benefits – Actuarial Benefits…

Lobbying Lobbying is a word which may have negative connotations in some people’s minds. Those people who are not close to the political process sometimes think that if politicians were able to make decisions in an environment free of lobbying, then better decisions could be made. This is a misconception of the political process. Today’s…

Accelerated Benefits 1990 – SOA – Accelerated Benefits, Society of Actuaries – 18p 1991 – LR – Death and Taxes: The Taxation of Accelerated Death Benefits for the Terminally Ill, Wayne M. Gazur, University of Colorado Law School – 88p 1991-1A, NAIC Proceedings -Accelerated Benefits Guide Model Regulation, 12/5/1990 – Attachment Two (p544) (D) Disclosure…