Words – Page 6 – [BonkNote]

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…

Core Business By contrast, the core business of an insurance company is transferring and pooling risk.258 If premiums are prepaid, this does not necessarily entail any short-term borrowing. That means that the risk that an insurance company will have to sell large quantities of assets is smaller. This is not to say that insurance companies…

Receivership Courts Dodd-Frank FDIC NAIC Receiver’s Handbook for Insurance Company Insolvencies for Qualified Financial Contracts Troubled Companies 2023 04 – NAIC – State Insurance Receivership Priority Act – Federal Priority Act – 1p UILA – Uniform Insurers Liquidation Act 1940 – LR – Legislation: The Uniform Insurers Liquidation Act – 12p Although there has been a vast…

Premiums, Costs, Values and Benefits Premiums and Benefits – Index P1P2 – Policy Mechanics / Cash Flow / Language In the case of true Universal Life…the product is modular and adjusts instantaneously to changes in benefits, premiums, and experience. — George R. Dinney: 1982 – SOA – Programs to Conserve Traditional Life Insurance Policies, Society of…

Search For Yield 2013 – FRB – Are the Fed’s low interest rate policies pushing investors toward risk? – 4p 81. AIG also chased higher yields by investing heavily in bonds of lengthy maturity As a consequence, AIG grossly mismatched the maturity dates of the collateral investments and the underlying securities loans, which rarely had…

Orderly Liquidation The complexities involved in resolving MetLife could aggravate the threat posed to U.S. financial stability by the company’s material financial distress. Case 1:15-cv-00045-RMC Document 85-2 Filed 09/30/15 Page 15 of 222 govinfo.gov/content/pkg/FR-2011-07-15/pdf/2011-17397.pdf govinfo.gov/content/pkg/FR-2016-10-31/pdf/2016-25329.pdf

Mortality Tables The mortality table is the instrument by means of which are measured the probabilities of death and survival. 1940-Supplement NAIC Proceedings 1919 – Book – Sources and characteristics of the principal mortality tables, by Henry Moir – 98p The Actuarial Society of America It should be remembered that the CET Table was prepared to…