Words – Page 28 – [BonkNote]

Supportable What is supportable is up to the illustration actuary and involves all aspects of the product, not just the crediting rate. — Donna Megregian 2015 – SOA – Actuarial Guideline 49 (aka Actuarial Guideline YY), Society of Actuaries – 3p 1988 – SOA – Are Current Illustrations Supportable?, Society of Actuaries – 20p I endorse the…

Socialism SPOT LIGHTS ON SALES PROBLEMS From the Northwest Life Congress 1922 Weekly Underwriter page 99 Socialism Paternalism Merriam-Webster def: 1) a person who is independent (as in politics) or who remains undecided or neutral 2) Did You Know? Mugwump is an anglicized version of a word used by Massachusett Indians to mean “war leader.”…

Duty to Read Many Misunderstandings with Reference to its Terms and Conditions might thus be removed. 1922 – American Agency Bulletin, Volume 19 Law Reviews 1974 – LR – Duty to Read–A Changing Concept, by John D. Calamari – 23p Legal Cases 2008 – LC – AmerUs vs Smith – Supreme Court of Alabama – …

Signature The working group next discussed the appropriateness of including a requirement for a consumer signature on the document. The group decided it was important not to imply consumer understanding of what was in the illustration but just an acknowledgment of receipt of the illustration. 1994-2, NAIC Proceedings I think the only thing the illustration…

Actuarial Guideline 38 However, it was by no means apparent to many of us in the industry who would be most affected. In fact, when I learned of this movement in mid-summer, I called many of the larger writers of universal life products with secondary guarantees, and they told me that they had no knowledge…

Guaranteed Gross Premium Guaranteed Maturity Premium (GMP) For purposes of determining the guaranteed gross premiums used in the demonstration in Section 6.B.2: For universal life policies, the guaranteed gross premium shall be the premium specified in the contract, inclusive of any applicable policy fee, or if no premium is specified, then the level annual gross…

Reserves Principles-Based Reserves – PBR Premiums and Benefits – Reserves Benefit Reserves CRVM modified reserve systems soa.org/globalassets/assets/library/research/transactions-of-society-of-actuaries/1967/january/tsa67v19pt2dn5410.pdf Natural Reserves PBR Policy Reserves Terminal Reserves 2013 0917- ThinkAdvisor – ACLI calls Lawsky’s letter on reserves ‘irresponsible’, By Elizabeth D. Festa – [link] In a letter to state insurance commissioners, the American Council of Life Insurers (ACLI)…

Policy Overview / Policy Summary / Cover page / Narrative Summary Policy Overview Ideas [George Coleman]… said that the NAIC had formed a resource group last November to assist and recommend changes. The resource group recommended a cover page to the illustration to include essential information about the illustrated policy. — George Coleman, Prudential, ACLI,…

Commissions “compensation patterns and product design” “Special Compensation” – “incidental advice” Renumeration levelized commission program We designed commission rules that anticipated a relatively large number of rollovers of existing policies;. ..full commissions are paid provided the new Universal Life face amount is at least two times the face amount of the replaced policy. — Phillip B. Norton, not…

Glossary William Koenig (Northwestern Mutual) suggested that the parties all needed a common understanding of the terms used in their discussion. 1993-4, NAIC Proceedings The ‘unbundling’ of services and other product differences between Universal Life and Ordinary Life cause current literature to be inapplicable, as well as insufficient, for Universal Life . 1984 – Academy…