Words – Page 4 – [BonkNote]

Misleading Misleading Illustrations Why is this flimflammery allowed to continue? Where are the laws to prevent companies from misleading people? — Senator Howard Metzenbaum (D-OH) 1993 0525 – GOV (Senate) – When Will Policyholders Be Given The Truth About Life Insurance?, Senator Howard Metzenbaum (D-OH) — [BonkNote] (Northwestern Mutual Life: A Century of Trusteeship by…

Internet Commissioner Linda Ruthardt (Mass.) said that at some point people will be able to buy life insurance over the Internet and will create their own illustrations. 1995-1, NAIC Proceedings From the Floor: Do you think that the Internet really deals with more commodity like products, that insurance products on the Internet will become simpler,…

Comparison Taxonomy – Changes – Term to Permanent Cost Comparison Policy Comparison NAIC Life Cost Comparison Working Group – NAIC Life Insurance Cost Comparison Task Force – NAIC 2013 – SOA – Life Insurance Regulatory Structures and Strategy: EU Compared with US, Society of Actuaries – 92p

Reasonable Reasonable Assumptions Reasonable Expectations Reasonable Person The number one perceived problem is that buyers simply do not understand the nonguaranteed nature of life insurance illustrations. Also, it is impossible for the average buyer to judge the reasonableness of the assumptions underlying the numbers in the illustration. — John W. Keller, Northwestern Mutual 1991 – SOA…

Non-Guaranteed Cost Element – ACLI A couple of ACLI groups have also been studying various aspects of universal life insurance. The Council’s Subcommittee on Cost Comparisons has proposed that cost disclosure requirements for universal life plans be generally similar to those for traditional life insuranceplans as provided by the NAIC Model Life Insurance Solicitation Regulation.…

Assumption Reinsurance Life and health insurers have greater opportunity to transfer a set of policies from one company to another, using a transaction known as “assumption reinsurance” (a confusing term for what amounts to the sale of a block of policies with the “consent”—sometimes constructive—of each policyholder).105 2021 – LR – Uncertainty > Risk: Lessons for…

Terms of Art (p5) – They allege that “cost of insurance” is an industry term of art… 2013 0102 – LC – Freeman v Pacific Life – 09-55513, D.C. No. 8:08-cv-01134-DOC-AN, OPINION – 15p There is a general rule of statutory construction that terms of art used in the statute that are particular to a specific…

Demand Deposit Demand deposits are funds on deposit with banks; they are subject to immediate withdrawal and are classified as cash. (p434) — – Life and Health Actuarial (EX5) Task Force – 1988-2, NAIC Proceedings ATTTACHMENT TWO-B Draft 4/11/88 RE: Proposed Regulations Concerning the Valuation of Universal Life Insurance Plans The regulation provides for the…

Wildcat Perhaps no abuse in recent years has been productive of more financial loss than than the sale of stock in wildcat insurance enterprises… (p88) 1912-0, NAIC Proceedings Nor are financial panics the only cause for concern. Financial markets have also long exhibited a vulnerability to manipulation, swindles, and fraud, including: William Duer’s notorious attempt…

Write-Downs 1994 – FRB – Announcements of asset-quality problems and contagion effects in the life insurance industry, by George W. Fenn and Rebel A. Cole, First version August 1992, final version October 1993, Federal Reserve Board – 29p AIG Securities Lending / Life Insurance – 50-55 Billion mp3 interview – Dixie / <Contagion / Writedowns>…