Churning

Churning will be high as comparisons of recent performance and illustrations will “prove” the necessity for a switching.

-- Dale R. Gustafson, Northwestern Mutual

...asks why the really hard questions about the product aren’t reflected in the articles we printed. His nominees for the hard questions are:

1981 11 - SOA - The Actuary, Society of Actuaries - 2p

1999 0416 - NYT - Metro Business; Life Insurance Refunds, By The Associated Press, [MetLife, Richard Blumenthal, deceptive sales practices, churning] - [link]

7. Consider Charges for 1997 and 1998
- 3. Make recommendations for new models or changes to existing NAIC model laws or regulations to address issues related to problems of churning.

1996-4V2, NAIC Proceedings

(p21) - Senator Howard Metzenbaum (D-OH): At a recent meeting of underwriters, Thomas Wheeler, a chief executive officer of Massachusetts Mutual, said in the last decade:
- "Some companies encourage churning", meaning rolling over whole life business into universal life.
- Not only did these companies swap high-margin products for low-margin ones, they often incurred additional acquisition costs.
- ⇒ Do you agree with Mr. Wheeler's remarks?

1993 0525 - GOV (Senate) - When Will Policyholders Be Given The Truth About Life Insurance?, Howard Metzenbaum (D-OH) --- [BonkNote]