James C.H. Anderson

  • Jim Anderson
  • 1959-?-? – Georgia International Life Insurance Co. 
  • 1959 – SOA – Anderson, James C. H., “Gross Premium Calculation and Profit Measurement for Nonparticipating Insurance,” Transactions of the Society of Actuaries 11, 1959, pp. 357- 394.
  • 1964 1021 – The Atlanta Constitution – Lyndon Johnson – p5
  • 1966 0214 – The Atlanta Journal – Great International Life Insurance Co.- p39
  • 1968 1028 – The Atlanta Journal – Abbey International Corp – p30
  • 1972 0109 – The Atlanta Constitution – Bowles and Tillinghast – p55
  • 1975/1999 – SOA – The Universal Life Insurance Policy, by James C. H. Anderson, Society of Actuaries – 10p
  • 1981 0511 – The Independent Record – p12
  • 1981 0705 – Asbury Park Press – p97
  • 1981 0913 – The Atlanta Constitution – p41
  • 1982 0715 – NYT – Senators Seek to Keep Life Policies High Yield, By Thomas C. Hayes, Special to the New York Times – [link]
  • 1997 – Book – The Papers of James C.H. Anderson
  • 1999 – SOA – A Brief History of Universal Life, by Douglas C. Doll, Society of Actuaries – 4p
  • 1999 – SOA – Jim Anderson’s Predictions, rsa99v25n3124pd – Society of Actuaries – 18p
  • ”The product is validated by the new tax package,” said James C.H. Anderson, a principal of an actuarial consulting concern, Tillinghast, Nelson & Warren.
    • This concern, based in Atlanta, has advised about 50 companies in setting up universal policies.

1982 0715 – NYT – Senators Seek to Keep Life Policies High Yield, By Thomas C. Hayes, Special to the New York Times – [link]

  • Friends and colleagues of the late consulting actuary, James Charles Henry (Jim) Anderson, have immortalized his pioneering spirit in a new memorial fund to be administered by the Actuarial Education and Research Fund (AERF).
  • AERF Executive Director Curtis Huntington said, “The fund will seek out work that is visionary, iconoclastic, or innovative in finance, actuarial science, and related fields and reward it.”

—  Anderson Memorial Fund established to Support actuarial research work

1996 – SOA – Anderson Memorial Fund established to Support actuarial research work, act-1996-vol30-iss01-heacox-b – Society of Actuaries – 2p

  • Jim Anderson is revered, but I think he did a disservice to the industry by coming out with that product. [Bonk: product = Universal Life] 
  • UL is a horror. — Who understands UL?
    • The home office doesn’t. Maybe they do now.
    • The IT department doesn’t.
    • The owner doesn’t. 

—  Jeff Robinson

2003 – SOA – Do You Know How Much You’re Spending? The Hidden Costs of Product Complexity, Society of Actuaries – 19p

  • xvIii. TERM INSURANCE
  • Although formula (4), suitably elaborated to reflect the cost of conversion, is theoretically applicable to term insurance, it is impractical because the smoothing factor (AD,) must be excessively powerful to produce the simple dividend design needed. The pricing designs by James C. H. Anderson (TSA, XI, 357) and Mel Stein (TSA, XVI1, 235), which essentially utilize formula (1), are far more practical.

1981 – SOA – An Expanded Financial Structure For Ordinary Dividends, By Donald D. Cody, tsa81v3315 – Society of Actuaries – 54p

  • ”The universal policy will eventually take the place of whole-life policies, barring another technological breakthrough,” asserted James C.H. Anderson, a consultant to insurance companies. Mr. Anderson helped design several policies that have recently become available.
  • The Life Insurance Company of California was the first to sell the universal policies, in January 1979. Its name later was changed to Hutton Life; it is a division of the E.F. Hutton Group Inc. Mr. Turner, then an actuary working with Mr. Anderson at Tillinghast, Nelson & Warren, an Atlanta actuarial firm, was a consultant to Life of California.

1981 0510 – NYT – NEW, IMPROVED LIFE INSURANCE, By Thomas C. Hayes – [link]

  • 1982 – SOA – The Financial Risk to Life Insurance Companies from Changes in Interest Rates, rsa82v8n13 – Society of Actuaries – 56p
    • March, 1982 Actuary, Jim Anderson’s disturbing paradox.
  • To do that, let’s look back in time at some of our Firm’s ideas of the industry’s outlook prior to TEFRA.
  • Jim Anderson, the President of our Firm, is fond of the metaphor, “The Four Horsemen”.
    • These four horsemen are not the Four Horsemen of the Apocalypse.
      • Neither did they form the hack field for Notre Dame.
      • Rather, they are the major forces which are threatening the life insurance industry.
    • The four horsemen threatening the life insurance industry’s survival are taxation, expenses, replacement, and inflation.

—  William R. Britton, Jr., Vice President and Principal of the Tillinghast firm

1983 – SOA – Individual Life Insurance, Society of Actuaries – 22p

  • Mr. STANLEY: First I wanted to co_nent on that inside build-up question. Jim Anderson’s original paper on Universal Life proposed that the company Just consider it interest paid and 1099 the policy-holder. I do not think that is unreasonable. If excess interest was declared not fully deductible, there might well be a large market that you can forward 1099 information to regarding the interest paid over deposit.
  • MR. CHAPMAN: Just to supplement that, imagine a second generation Universal Life product that is in a money market fund. We then have a tax privileged money market fund competing with money market funds on which interest is taxable. Look at this from the stand point of the securities industry. By slapping the term insurance on it, which costs pennies in relationship to the amount that is going into the fund, suddenly you have an enormous competitive advantage over the fund that is being marketed in a parallel way. The securities industry has some very powerful friends in Washington. When that product hits the streets in large numbers, I think you will see a real challenge to the taxation of inside build up.

1982 – SOA – Tax Parity for Individual Life Insurance Products, rsa82v8n319 – Society of Actuaries – 22p