Illustrations - History

  • In the use of these illustrations, agents must carefully discriminate between what is guaranteed in the policy, and what is only a possibility...  (p42 of 240)

1896 - Ratebook - Premium Rates, Guarantees and Illustrations of Policies - New York Life Insurance Company - 240p

  • Senator Metzenbaum
  • Prudential Multi-State Task Force Report
  • 1994-3, NAIC Proceedings - NAIC Life Disclosure Working Group - List of Standards  - Attachment Four A  - 3p
  • 1996-4V2, NAIC Proceedings - Commissioner Wilcox said that he admitted that the working group had gotten a little sloppy on its terminology, but it had been clear all along that the working group was focusing on sales.
    • [Bonk: working group - NAIC Life Disclosure Working Group]
  • LC - Judge video 9th Circuit--- Walker v LSW - Model Regulation seems very detailed.
  • 20xx - IULSG - NAIC -   Meeting when AAA / Donna presented about type A Type B,
    • Fred Thanked Donna for Background work and then said it was helpful because some of the things in the Illustration Regulation didn't make sense...
  • Dear Editor: Life Insurance Sales Illustrations - A Call to Action
    • We have reached the stage where a life insurance sales illustration is hardly worth the paper it is printed on.
    • Yet thousands of agents are confidently presenting these illustrations to frequently unsuspecting clients.
    • I have yet to discuss this issue with anyone in the industry - home office or field - who doesn’t agree that the current situation is a mess.
    • But everyone also agrees that no single company can try to institute change by, withdrawing from the illustration game.
    • Sooner or later, surely, the whole house of cards will come tumbling down.

--  Daphne Bartlett

1988 - SOA - Article from: The Actuary June 1988 – Volume 22, No. 6 - 2p

  • The whole process started in the NAIC, as it had to.
  • If radical changes in the way we illustrate policies were going to be made, they had to start at the NAIC.
    • The NAIC was only too well aware of the fact that sales illustrations were the subject of innumerable abuses and they wanted to correct those abuses.
    • Furthermore, the NAIC was being pushed by Senator Howard Metzenbaum who wanted to accuse the regulatory structure of not doing its job and then to bring regulation up to the federal level." 

--  Frank S. Irish, ASB, Actuarial Standards Board

1997 - SOA - Professional Standards Affecting Life Actuaries, Society of Actuaries - 18p

  • James D.  ATKINS: The NAIC has proposed a life insurance illustration regulation. The draft I have is dated April 21, that's fairly recent.  I hope you've had a chance to look it over.
    • I'd like to start out by posing a question and that is, what is the impetus behind introducing this illustration regulation?
      • Why are we doing this?
  • Robert Wilcox (Utah Insurance Commissioner and Chairman of the Life Disclosure Working Group - NAIC): Efforts began in the NAIC to look at the quality of the illustrations as the investment market turned steeply downhill and premiums that were supposed to vanish didn't.
    • That put tremendous pressure on the companies and on the regulators of the companies to look at this particular issue.
    • If you look at last week's copy of the National Underwriter, there was word of a lawsuit, actually two or three lawsuits, that had been filed over the issue of reappearing or nonvanishing premiums.
      • That points out the initial problem.
    • Whatever we did to illustrate those contracts when they were sold, the policyholders did not understand the contingent nature of that vanish.
      • That's the underlying reason we got into this.
  • James D. ATKINS: You mean just because they didn't understand the vanishing premium illustration we have all this regulation being imposed?

1995 - SOA - Current Developments Surrounding Regulations and Standards of Life and Annuity Products, Society of Actuaries - 18p

  • I'm a member of the NAIC working group that developed this regulation and I am terribly disappointed. 
    • I have been interested in the illustration issue for probably 15 or 20 years, and some of you may know that when I became President of the SOA, the first thing I did was establish the task force that developed the report on sales illustrations.   
  • Tragically, what's come out of this process doesn't do the job.

--  Daphne D. Bartlett

1995 - SOA - Sales Illustrations, Society of Actuaries - 14p