Interest Adjusted Method

Interest Adjusted Method

• IAM – Interest Adjusted Method
• Interest Adjusted Index

• C.L. TROWBRIDGE:
  • My interest in this challenging subject goes back to my membership on the 1970 Joint Special Committee chaired by Jack Moorhead.
  • This Committee proposed what was then known as the interest-adjusted method, which later became the basis of the NAIC approach now in effect in some 2/3 of the states.

1981 – SOA – Individual Life Insurance Cost Disclosure Issues, Society of Actuaries – 22p

• 1973 – SOA – A Ratio of Interest-Adusted Cost Indexed for the Comparison of Dissimilar Life Insurance Contracts, by Peter L.J. Ryall, tsa73v25pt1n72ab5 – Society of Actuaries – 28p

• STATEMENT OF JAMES HUNT, FSA, DIRECTOR NATIONAL INSURANCE CONSUMER ORGANIZATION BEFORE THE NAIC TASK FORCE ON LIFE INSURANCE COST DISCLOSURE – December 15, 1981
  • With the advent of universal life, a form of whole life, it is now possible to say that only coincidently may the NAIC Interest-adjusted method be used to compare whole life and universal life.  (p397)
  • ⇒ NICO – NATIONAL INSURANCE CONSUMER ORGANIZATION, Currently CFA – Consumer Federation of America
  •   Life Cost Disclosure Task Force – (A) – NAIC

1982-1, NAIC Proceedings