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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…

Stays Moratorium 1983 10 – SOA – The Actuary – New South Life: The Sequel, Ed. Note: This Contributors Identification is known to the Editor, Society of Actuaries – 8p Among Points for Actuaries to ponder: The rescue operation might have failed especially if new policyholders had understood that the company might, as it did, go out…

Life Insurance and Banking Banking and insurance are related, but the insurance industry is fundamentally different, and our approach toward regulators must consider those differences. (p2) — Senator Jack Reed (D-RI) 2011 0914 – GOV (Senate) – Emerging Issues in Insurance Regulation – Congressman Reed (RI) – PDF-51p 1998 – LR – The Law and Finance…

Premium Taxes The States feared the loss of large revenues received from taxation of the insurance business.1 (p221)’ 1948 – LR – Statutory Regulation of Life Insurance Investment, by W. Page Keeton, Yale – 21p As you may know, Alabama has a $1.3 billion per year insurance business, resulting in $240 million of insurance premium…