COI – Cost of Insurance

  • 2019 0917 – LIIIWG – Life Insurance Illustrations Issues Working Group – (A) – NAIC – COI – Cost of Insurance  —  [BonkNote]
  • 2019 – ACLI – Cost of Insurance in the News – 16p
  • Vogt v State Farm – 2017/12/13 – Mrs Vogt Deposition 

  • Until the buyer understands how the product works, attempts to compare price are essentially meaningless.

1972 – SOA – Life Insurance and the Buyer by Anna Rappaport, Society of Actuaries – 2p-Article

  • Maybe we can jiggle a bit with our cost of insurance rates.

—  MichaeI R. Tuohy, [Bonk:  Tillinghast]

1985 – SOA – Variable Life Insurance in Canada and the United States, rsa85n11n36 – Society of Actuaries – 24p

  • The advisory committee requested that if the time value of money is shown, they would like the cost of insurance to be disclosed to the consumer as well.

1991-1A, NAIC – Life Marketing Practices to Senior Citizens Working Group

We then developed a risk cost for the term portion of the universal life insurance product.

—  William Arndt

1985 – SOA – Actuarial Pricing Assumptions in a Volatile Environment, Society of Actuaries – 32p

  • 19. When I recommend Paragon or Provider, I inform my clients in some form of words that the policies charge a cost of insurance that will increase as they grow older.
    • I tell them that the policies maintain cash values, in part to offset that increasing Cost of Insurance. 

—  Declaration of Sean L. Covi (Agent), 10.09198-JVS(RNBx) 

   Joyce Walker et al v. Life Insurance Company of the Southwest (LSW) – 

  • 2013 – LC – US Bank National Association v. PHL Variable Insurance Company
    • Dist. Court, SD New York, 2013 – [link-Google Scholar]
    • The relevant policies are universal life insurance policies which allow policyholders to pay as much money as they want into their policy accounts each month as long as the account balance is sufficient to cover policy charges, including a “cost of insurance charge …
  • State Georgia Tabular Cost of Insurance means the net single premium at the beginning of a policy year for one-year term insurance in the amount of the guaranteed death benefit in that policy year.

ilga.gov/jcar/admincode/050/050014090000300R.html

  • Commissioner Lyons reported that the working group feels strongly that the disclosure form should recognize the time value of money.
    • The advisory committee requested that if the time value of money is shown, they would like the cost of insurance to be disclosed to the consumer as well.

1991-1A, NAIC Proceedings – Life Marketing Practices to Senior Citizens Working Group

  • Ironically, all the columns, figures, pages, disclaimers, and disclosures do not tell consumers what they really want to know -What does the insurance cost?
  • Below are my suggestions for what an illustration should tell a consumer.

—  J. Robert Hunter, Commissioner of Insurance, Texas Department of Insurance

1994-2, NAIC Proceedings – (Life Disclosure Working Group – NAIC)

  • SOA – Agent – I didn’t know Costs Came Out
  • 1870 – Book – Cost of Insurance: A Treatise Upon the Cost of Life Insurance, Together with an Arithmetical Explanation of the Computation of Premiums and Valuation of Policies to which are Added Tables of Net Premiums, Cost of Insurance for the Use of Life Insurance Agents, by Nathan Willey