• Back in Chicago on February 13, 1996, there was an ACLI meeting where Bob
  Wilcox, who is the Commissioner of Insurance in Utah, said that there were four guiding principles to the entire illustration actuary movement.
• He said the process has been going on for several years at the NAIC level to,
  • first of all, prevent the sales miscommunications that may have occurred in the past.
  • Second, he wanted to empower the actuary whom he called the insurance engineer who understands the details and builds the buildings.
  • Thirdly, the industry must present clear, understandable information to the consumer (that's the disclosure point).
  • Finally, the NAIC is trying to regulate only at the level needed to achieve the desired result. In other words, the value you get back must exceed the cost.
• This is what he said back in February and here we are now. Everybody is busy doing this stuff, and has it worked?

--  Abraham S. Gootzeit. principal in the St. Louis office of Tillinghast

1996 - SOA - Update on Life Insurance Illustrations, Society of Actuaries - 24p