Words – Page 30 – [BonkNote]

Unbundled 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 – AAA – American Academy of Actuaries – Journal I would like to ask how many people here have received requests for such unbundling from the public.…

Performance Benefits Coverage Period Historical Performance Policy Performance, Variability, UL Description Results Outcomes Cost – 2000 – AP – The Nature and Causes of Variation in Insurance Policy Yields: Whole Life and Universal Life, Journal of Insurance Issues, 2000, 23, 1, pp. 30–47, by James M. Carson and Mark D. Forster – 18p The actual versus…

Organized Crime Mafia 1967 – DOJ – Task Force Report: Organized Crime, Annotations and Consultants’ Papers, US Department of Justice – 135p 1971 – ABA – The Forum – index to volumes I-ix – The Mobster and His Life Insurance— Misrepresentation of Occupation as Ground for Avoiding a Life Insurance Policy, Vol. VI, No. 2,…

Policy Summary The <ACLI’s> Council’s Subcommittee on Cost Comparisons has proposed that cost disclosure requirements for universal life plans be generally similar to those for traditional life insurance plans as provided by the NAIC Model Life Insurance Solicitation Regulation. In addition, the Subcommittee is recommending disclosure for universal life plans in accordance with the “non-guaranteed…

Illustrations as Roadmaps This was an optional idea that we called “Illustrations As Road Maps.” The concept is that instead of letting the actual performance of a Universal Life policy diverge over time further and further from what was originally illustrated, you could send policyholders a notice each year on the anniversary, if the results are below…

Credibility MR. BARKS: Is credibility a better word? George COLEMAN: Yes, credibility in the sense that those numbers were developed using actuarially appropriate standards. — George Coleman, Prudential, ACLI, TRG-Technical Resource Group for the NAIC (Industry Advisory Group – Illustrations) 1994 – SOA – Problems and Solutions for Product Illustrations, Society of Actuaries – 28p 2009 – SOA…

Understanding What they did not understand, they did not find useful. 1990-1A – NAIC Proceedings – NAIC LIMRA – Universal Life Disclosure Form Test Market Results – 10p We have to get out of our mode of talking about these policies in language that can only be understood by the person who wrote the language. I…

Investment Generation Method New Money / Portfolio Money New Money (Investment Generation Method) vs Portfolio Method [Bonk: Investment Generation Files(37) NAIC] However, it is far less clear as to how to make a fair, nonmisleading statement, about an investment year method illustration in comparison with a portfolio average illustration. This will be one of the…

Interrogatories Lonnie Milton Graul: Don’t you think part of the response to the interrogatories might be the choice of the lesser of two evils? An honest response might be, “The rates we are currently illustrating are not supportable because we illustrate on the portfolio rate and the portfolio rate is higher than the new money…

GMP – Guaranteed Maturity Premium The Model Regulation assumes that future premiums will be paid at the whole life level, and calls this premium the GMP [the guaranteed maturity premium]. [Bonk: Universal Life Model Regulation – NAIC] — Shane Chalke 1984 – SOA – NAIC Update, Society of Actuaries – 24p A regulator had told them that…