Words – Page 8 – [BonkNote]

CDS Spreads 2018 – JIR – CDS Spreads, Systemic Risk and Global Systemically Important Insurers Designations – 41p Geithner: Trial Tr. 1407:21 – 1408:9 (Geithner explaining that the CDS spread is an indication of the market’s perception of AIG’s default risk)).

Valuation and Non-forfeiture Nonforfeiture Second Standard Nonforfeiture Law – NAIC Standard Non-Forfeiture Law – SNFL Valuation Standard Valuation Law – SVL Valuation Actuary 1987 – SOA – Valuation Actuary Handbook – VAH 1987 – SOA – Valuation Actuary Handbook – VAH871 – Chapter 1 – Insurance Company Statutory Valuation, Society of Actuaries – 34p Valuation…

Overfund (p5-7) – Section 2 – Introduction and Background The ultimate goal of this report is to raise awareness regarding the questionable sale of complex insurance products (overfunded UL insurance in particular) in specific circumstances, and to commence a broader discussion regarding specific actions that can be taken to increase adherence to FTC/ICP 19 and to…

Non-Traditional NON-TRADITIONAL LIFE INSURANCE PRODUCTS NTNI – Nontraditional and Non-insurance – IAIS Non-Traditional Risks The obvious question that springs to mind when asked to consider non-traditional life products is what is meant by “non-traditional”? Upon reflection, virtually every product of significance in today’s market can be termed non-traditional in one way or another. — Trevor…

Rate Regulation Rate regulation is not an issue that pertains to the life market. — William Fisher, ACLI / Vice President and Associate General Counsel for the Massachusetts Mutual Life Insurance Company, on behalf of the American Council of Life Insurers 2001 0621 – GOV (House) – Insurance Product Approval: The Need for Modernization, Richard…

General Accounts 1983 – SOA – Segmentation of Insurance Company General Accounts, Society of Actuaries – 38p New Money / Portfolio Money Investment Generation Method 5. A general account is a design feature that is generally available to purchasers of whole or universal life insurance whereby the general assets of the insurance company support the…

Surplus Surplus Notes Surplus Relief The availability of surplus sometimes constrains the growth of an insurance company. To optimize growth, a company under such constraint must develop equivalent profit standards for all opportunities that use surplus, such as sales of insurance products, acquisition of investments, or development of a sales force. 1981 – SOA -…

Nonguaranteed Non-Guaranteed Elements NONGUARANTEED PREMIUM He questioned the appropriateness of taking non-guaranteed elements and making them guaranteed as suggested as a penalty in the white paper. 1993-3, NAIC Proceedings Our Lexington report alluded to the controversial issue of nonguaranteed policy element illustrations. Currently the issue is being addressed by four different groups: NAIC – this…

Guarantees Guarantees Only 2005 – SOA – What’s Backing Your Life Insurance Guarantee? – [LINK]

Moral Hazard Financial Crisis We argue that changes in the life insurance industry have created a nontrivial moral hazard. We document the industry’s shift from sales of life insurance to sales of mainly rate-of-return oriented investments like single premium deferred annuities (SPDAs) and guaranteed investment contracts (GICs). 1992 – FRB-Minneapolis – SPDAs and GICs: Like Money…