Words – Page 5 – [BonkNote]

Semantics Pursuing this thought further brings to light the fact that our nomenclature in this field is not only poor semantics but also far from precise. — Ralph E. Edward 1955 – SOA – Analysis of Approximate Valuation Methods, Society of Actuaries – 16p Jesse M. Schwartz: Why are people so reluctant to call Total Life…

Lending Bond Lending Loans Securities Lending

Bespeaks Caution Doctrine Judge Pauley held that this disclosure was inadequate: [W]arnings of specific risks like those in the ARM Prospectus do not shelter defendants from liability if they fail to disclose hard facts critical to appreciating the magnitude of the risks described…. As aptly put by Judge Pollack in the context of the bespeaks…

Witness Confidential Witness (CW) Eugene Park, aka Gene Park – AIG – American International Group, Inc. 2008 Securities Litigation – 61. In further connection with the CWs referred to in the Complaint, Lead Plaintiff had earlier provided AIG’s counsel with the identity of one of the CWs that Lead Plaintiff had noticed for deposition. That…

Panic Panic of 1907 Panic of 1857 Insurance Panic 2013 0621 – AP – The Failures that Ignited America’s Financial Panics: A Clinical Survey, by Hugh Rockoff – 52p FCIC – Geithner – 50p 2009 1210 – COP – Hearing – Hearing With Treasury Secretary Timothy Geithner, Congressional Oversight Panel — [BonkNote] — [PDF-98p, VIDEO-CSPAN] (p78) – Tim…

Repricing 1988 – SOA – Repricing Considerations — InForce Blocks of Business, Society of Actuaries – 20p 1992 – SOA – Repricing the In-Force Book of Business, Society of Actuaries – 16p ALBERT E. EASTON: I want to begin discussing repricing of traditional life insurance by making some general comments about pricing, not just repricing but all…

Nonguaranteed Guarantees Next is the topic of nonguaranteed guarantees. The ploy here is how to persuade your agents and your prospective policyholders that you probably won’t increase premium rates, but be sure that they understand that you retain the right to increase rates. — James N. Van Elsen 1999 – Impact of Regulatory Uncertainty on…

Interest Rate Guarantees Many insurance products offer minimum interest rate guarantees for the life of the contract. In fact, some of these guarantees are mandated by statutory nonforfeiture laws. Although guarantees of 3-5% were once considered minimus, the current low interest rate environment renders them problematic. This session will explore the product design,pricing and investment…

Material It’s amazing what plaintiffs’ lawyers deem to be material for purposes of the sale. Was it material that an agent received 95% of the first year’s premium? Was it material that the agent could have sold you essentially the same policy, particularly in a universal life scenario, and received only 40%? Those are things…

Concepts It is these concepts or the uses of the products and not the illustrations that are the difficulties here. — 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 We are a research…