Kyle Busch vs. Pacific Life Insurance Company – ADD
Kyle Busch vs. Pacific Life Insurance Company - ADD
- 2025 - LC - Kyle Busch vs. Pacific Life Insurance Company - 5:25-cv-00195 --- [BonkNote]
- Plaintiffs - Kyle Busch, Individually and as Trustee for the Samantha Lynn Busch Irrevocable Life Insurance Trust; and Samantha Busch, Individually and as Trustee for the Kyle T. Busch Irrevocable Life Insurance Trust
- Counsel for Plaintiffs - RP LEGAL, LLC, Robert G. Rikard
- Defendants - Pacific Life Insurance Company, Rodney A. Smith, and Red River LLC
1800s
- 1896 - Ratebook - Premium Rates, Guarantees and Illustrations of Policies - New York Life Insurance Company - 240p
- 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)
1900-1950
- 1907-0, NAIC Proceedings
- "Deceptive Insurance Methods --The Cure", By Mr. E. E. Rittenhouse (Insurance Commissioner of Colorado) - (p215-228)
- In guarding the public against insolvent insurance companies state supervision has been eminently successful.
- In protecting the people against frauds, impositions and abuses by solvent companies it has been only partially successful.
1960s
- 1961 - Book - Modern Life Insurance, by Robert I. Mehr
- .. in gaining a life insurance education, one problem does present itself... the basic question is where to begin. (p1)
1970s
- 1979 - SOA - Cost Disclosure, rsa79v5n45 - Society of Actuaries - 18p
- Jack E. Bobo, NALU, National Association of Life Underwriters [Currently NAIFA], Executive Vice President - The findings and conclusions, and this Is the part that created the explosion, were that there is a shortfall of information, particularly with respect to ordinary life and that consumer experience does suggest that the consumer Is not able to adequately determine the suitability of the product, the quality of the product, or the cost of the product.
- As a consequence, consumers are sustaining losses, and this would be a definite Indication of a market failure.
- [Bonk: re 1978 12 - GOV (House - Report) - Life Insurance Marketing and Cost Disclosure Report Together with Dissenting Views, John Moss (D-CA) --- [BonkNote] --- [PDF-109p]
- Jack E. Bobo, NALU, National Association of Life Underwriters [Currently NAIFA], Executive Vice President - The findings and conclusions, and this Is the part that created the explosion, were that there is a shortfall of information, particularly with respect to ordinary life and that consumer experience does suggest that the consumer Is not able to adequately determine the suitability of the product, the quality of the product, or the cost of the product.
- 1979 1011 and 1022 - GOV (House) - Small Business Problems with Insurance - Part 1, John LaFalce (D-NY) --- [BonkNote]
- Chairman John LaFalce (D-NY) - During the course of....we ascertained that there were very few people within the Federal Government with an understanding of the insurance industry.
- A staff memo...stated: "It appears that for many years the workings of the life insurance business have been misunderstood by those at the [Internal Revenue Service and Justice Department] associated with the question."
- Chairman John LaFalce (D-NY) - During the course of....we ascertained that there were very few people within the Federal Government with an understanding of the insurance industry.
1980s
- 1981 0921 - GOV (House) - Insurance Agent Commission Deregulation - [PDF-109p-GooglePlay, VIDEO-?] ->Not on govinfo.gov, Committee on Small Business - Subcommittee on General Oversight
- Susan Mitchell, Wisconsin Commissioner of Insurance: So I think that the NAIC is going to have to relook at the whole issue of life cost disclosure.
- It is an issue that will not go away.
- ⇒ As long as the internal benefits of a policy are not reflected in the premium, people need help in measuring those benefits.
- ⇒ That is, in a nutshell, what cost disclosure systems have tried to do. (p10-11)
- Susan Mitchell, Wisconsin Commissioner of Insurance: So I think that the NAIC is going to have to relook at the whole issue of life cost disclosure.
- 1981 - SOA - The Future of Permanent Life Insurance, rsa81v7n36 -Society of Actuaries - 22p
- Stanley B. Tulin - The Wall Street Journal, in a back page article several weeks ago, discussed Universal Life Products, Variable Life and traditional permanent insurance - both participating and non-participating. <WishList>
- The Journal's comparisons showed the Universal and Variable Life products to great advantage.
- Of course, a critical aspect of the illustrations - for both Universal and Variable - is the assumed rate of interest.
- The Wall Street Journal article assumed a rate of approximately 11% for the Universal Life and Variable Life illustrations.
- The Journal's comparisons showed the Universal and Variable Life products to great advantage.
- Stanley B. Tulin - The Wall Street Journal, in a back page article several weeks ago, discussed Universal Life Products, Variable Life and traditional permanent insurance - both participating and non-participating. <WishList>
- 1983 - SOA - Individual Life Insurance Retention and Replacement Strategies, rsa83v9n417 - Society of Actuaries - 24p
- Phillip B. Norton, not a member of the Society, is Vice President of The Lincoln National Life Insurance Company - We designed commission rules that anticipated a relatively large number of rollovers of existing policies;.
- ...full commissions are paid provided the new Universal Life face amount is at least two times the face amount of the replaced policy..
- Phillip B. Norton, not a member of the Society, is Vice President of The Lincoln National Life Insurance Company - We designed commission rules that anticipated a relatively large number of rollovers of existing policies;.
- 1985 0719 Impact of Tax Reform on Insurance Industry, Pete Stark (D-CA) --- [BonkNote]
- Robert Beck, Prudential, Chairman and Chief Executive Office
- [RE: Vanishing Premium]
- (p6069) - Under some permanent insurance, contracts being sold today, the chances are you could stop paying after 7, 8, or 9 years and the insurance would remain in force for the rest of your life without further premium payments.
- (at approx. 2:27:00-2:27:30) - [VIDEO-CSPAN] - Impact of Tax Reform on Insurance Industry
- Robert Beck, Prudential, Chairman and Chief Executive Office
- 1988 0325 - GOV (Senate) - Tax Treatment of Single-Premium Life Insurance, (CSPAN) Single Premium Life Insurance, Max Baucus (D-MT) --- [BonkNote]
- Gordon G. Oakes, Monarch, Chairman of the Board and President - (p105) - One whole life insurance brochure used by our agents in 1975, entitled the "Four in One Plan", does not mention insurance on either cover. - <WishList>
- The back cover lists it benefits as, "retirement income, immediate estate, emergencies opportunities and self-completing if totally disabled.
- Life insurance is only mentioned two places in the brochure, and odds are, if it could legally have been eliminated from the discussion, it would have been.
- The words "death benefit" appear nowhere.
- Advertising life insurance as a savings plan is nothing new.
- The back cover lists it benefits as, "retirement income, immediate estate, emergencies opportunities and self-completing if totally disabled.
- Gordon G. Oakes, Monarch, Chairman of the Board and President - (p105) - One whole life insurance brochure used by our agents in 1975, entitled the "Four in One Plan", does not mention insurance on either cover. - <WishList>
1990s
- 1993-2, NAIC Proceedings
- NCOIL to State Insurance Departments
- Tony Higgins (N.C.) referred the group to a resolution of the National Conference of Insurance Legislators (NCOIL) urging state insurance departments to become aware of disclosure and abuse issues in life insurance solicitation (Attachment Six-A2).
- 1993 0525 - GOV (Senate) - When Will Policyholders Be Given The Truth About Life Insurance?, Howard Metzenbaum (D-OH) --- [BonkNote]
- (p4) - Statement of Hon. Charles E. Grassley (R-IA), A U.S. Senator From The State of Iowa
- I share Senator Metzenbaum's desire to ensure that insurance consumers have a thorough understanding of the obligations and performances that they can expect from a prospective life insurance policy, so that they can make fully informed purchase and investment decisions.
- (p4) - Statement of Hon. Charles E. Grassley (R-IA), A U.S. Senator From The State of Iowa
- 1993-4, NAIC Proceedings - Tony Higgins Insurance Regulator (NC) - agreed that there was a problem with lack of education of the agents.
- 1993-4, NAIC Proceedings - LDWG - Life Disclosure Working Group - NAIC
- The working group's concern was how to bring about a change without damage to the market place.
- 1993 - SOA - Sales Illustrations - We Can't Live With Them, But We Can't Live Without Them!, rsa93v19n22 - Society of Actuaries - 28p
- ACLI - Bruce E. Booker, (a member of the American Council of Life Insurance (ACLI) Task Force on Cost Disclosure and the National Association of Insurance Commissioners (NAIC) Advisory Group on Illustrations
- Actuaries can do lots of things.
- We can provide the field with a clear description of the policy and how it works.
- Robert Nelson, Chairperson of the National Association of Life Underwriters (NALU) Task Force on Illustrations - [Currently NAIFA]
- I sincerely believe we have a flawed instrument in today's sales illustrations.
- ...we did not communicate the impact of change as well as ...we should have.
- Our biggest mistake would be to delay.
- I don't believe the consumer will tolerate or forgive us, let alone the regulators, if we do nothing.
- ACLI - Bruce E. Booker, (a member of the American Council of Life Insurance (ACLI) Task Force on Cost Disclosure and the National Association of Insurance Commissioners (NAIC) Advisory Group on Illustrations
- 1994 - SOA - Problems and Solutions for Product Illustrations, rsa94v20n229 - Society of Actuaries - 28p
- George Coleman, Prudential, ACLI, TRG-Technical Resource Group for the NAIC (Industry Advisory Group - Illustrations)
- It is these concepts or the uses of the products and not the illustrations that are the difficulties here.
- I think you have to catch people's attention, and that is all to the good.
- George Coleman, Prudential, ACLI, TRG-Technical Resource Group for the NAIC (Industry Advisory Group - Illustrations)
- 1994-1, NAIC Proceedings - NALU [NAIFA]
- 13. The Cover Page for any illustration should contain the annual premium necessary to maintain the policy to maturity based solely upon the guarantees in the policy. This will assist the policyowner in understanding the differences between guaranteed and non-guaranteed policy features.
- 1994-1, NAIC Proceedings.
- FROM: Chris Kite, FIPSCO, DATE: February 22, 1994, RE: Corrections to 1-27-94 Proposal for NAIC Life Insurance Illustration Model Act
- The Target Premium is $3,360.00.
- The TAMRA Premium is $18,630.63.
- The Guideline Level Premium is $6,058.33.
- The Guideline Single Premium is $66,962.64
- FROM: Chris Kite, FIPSCO, DATE: February 22, 1994, RE: Corrections to 1-27-94 Proposal for NAIC Life Insurance Illustration Model Act
- 1995 - SOA - Practical Illustrations and Nonforfeiture Values, rsa95v21n123 - Society of Actuaries - 14p
- Linda M. Lankowski - I think any way that we can make illustrations more understandable to the public is certainly going to help us.
- We've seen the problems that have occurred when Senator Howard Metzenbaum (D-OH) was given an illustration with a vanishing premium, and he had absolutely no idea that he had bought a policy that was not paid up in four years.
- It caused many problems for the industry; it caused many problems because the press got involved, and the press doesn't understand the products as well as it thinks it does.
- Susan Oberman Smith: I think that one problem, even with the illustration disclosure, is that you are still not controlling what the agent actually says to the client, even when he or she sees that illustration.
- I've been in many situations where our agent says, "I sold them a ten-pay contract and it was paid up in ten years," and I say, "It's not paid up."
- I don't know how you can handle the idea of the agent telling somebody that it's a paid-up contract when it really was a vanishing-premium-concept contract.
- Linda M. Lankowski - I think any way that we can make illustrations more understandable to the public is certainly going to help us.
- 1997 1024 - WSJ - MONY Wins Dismissal of Suit Over 'Vanishing Premium' Policies, by Leslie Scism - [link]
- ... in the MONY case, New York state judge Beatrice Shainswit found that, while thousands of consumers nationally "have been deeply aggrieved by what they perceive to be a grave injustice perpetrated upon them by the numerous insurance companies who contrived, and profited, from the "vanishing premium" concept," this "ill-conceived product" doesn't necessarily "equate to fraud, or any other actionable wrongdoing, which can be compensated for in a court of law."
- ⇒ Her 29-page decision debunks key arguments in almost all of the suits. - <WishList>
- ... in the MONY case, New York state judge Beatrice Shainswit found that, while thousands of consumers nationally "have been deeply aggrieved by what they perceive to be a grave injustice perpetrated upon them by the numerous insurance companies who contrived, and profited, from the "vanishing premium" concept," this "ill-conceived product" doesn't necessarily "equate to fraud, or any other actionable wrongdoing, which can be compensated for in a court of law."
- 1998 / 2003 - Report of the Metropolitan Life Insurance Companies located in New York, New York as of December 31, 1998. By Examiners of the State of New Jersey Department of Banking and Insurance Division of Enforcement and Consumer Protection Market Conduct Examination Unit - 44p
- In its June 7, 1994 Consent Order #94-102, the NJDBI cited N.J.S.A. 17B:30-3 and N.J.A.C. 11:2-23.4 and subsequently fined MetLife $965,555 for MetLife's practice of misrepresenting life insurance to be retirement or savings plans, particularly in advertisements sent to nurses and other professionals.
2000s
- 2001 - Lawsuit - Solarchick v. Metropolitan Life --- [BonkNote]
- 42-1 - Exhibit A - 1993 1227 - Pennsylvania Market Conduct Examinations of Metropolitan Life Insurance Company - Filed 04/17/06 - 46p
- 42-2 - EXHIBIT A - CONT'D - 39p
- 42-3 - EXHIBIT A - CONT'D - 42p
- p10 - 50/50 Plan
- p18 - Nurses Insured Retirement Plan: (see pages 98-99}
- Nurses Guaranteed Retirement
- p30 - TELEMARKETING SCRIPT USED FOR THE TAX-ADVANTAGED BONUS PLAN
- In a Nutshell: With IRS intruding on almost all forms of retirement plans will there be any true Tax-Free Retirement income vehicles left for the small business owner?
- What would you say if we could show you how to have Tax-Free Retirement income with no-out-of pocket expenses to you?
- p31 - This plan is tailored as Tax-Free Retirement income plan but does provide an outstanding tax-free death benefit should you pass away prior to retirement, its the best of both worlds. In addition it may be one or the last true tax-free retirement income vehicles.
- 42-1 - Exhibit A - 1993 1227 - Pennsylvania Market Conduct Examinations of Metropolitan Life Insurance Company - Filed 04/17/06 - 46p
- 2003 0203 - LC - Fay v. Aetna - Doc 65 - Defendant Aetna Life Insurance And Annuity Company's Response To Plaintiffs' Separate Statement of Additional Undisputed Material Facts - 01-cv-10846 - 32p
- 20. Aetna does not dispute that Mr. Pflugfelder described the Policies as "permanent insurance."
- He did so correctly, as Plaintiffs concede.
- 21. Aetna does not dispute this paragraph, but adds that Plaintiffs never asked what the term "permanent insurance" means. - Page 6 of 32
- 20. Aetna does not dispute that Mr. Pflugfelder described the Policies as "permanent insurance."
- 2008-3, NAIC Proc.
- Legal Actions
- Monitoring of litigation may alert regulators to issues that the regulatory system has not yet addressed.
2010s
- 2010 0212 - WSJ - University and Pickens Sue Over Fund-Raising Plan, by Stephanie Storm - [link]
- Mr. Pickens and Cowboy Athletics, a fund-raising arm of the university, contend that the Lincoln National Life Insurance Company understated the costs of the program, overstated its potential financial benefits and charged the university inflated premiums, among other things.
- 2011 0914 - GOV (Senate-Banking/SII) - Emerging Issues in Insurance Regulation, Jack Reed (D-RI) --- [BonkNote] --- [PDF-51p, VIDEO-Senate]
- (p9) / 00:44:00 - Daniel Schwarcz, Associate Professor, University of Minnesota Law School
- The failure of State regulators to provide consumers with sufficient information extends to life insurance markets as well.
- Perhaps the most notable example is that consumers have virtually no means of comparing prices or costs for the cash value life insurance products that different companies offer.
- When combined with skewed-and nondisclosed-salesperson incentives, this too has produced distressing results.
- The failure of State regulators to provide consumers with sufficient information extends to life insurance markets as well.
- (p9) / 00:44:00 - Daniel Schwarcz, Associate Professor, University of Minnesota Law School
- 2014 1218 - Lawsuit - MetLife v. FSOC - D85-2, 85-2 - 15-cv-45 - Explanation of the Basis of the Financial Stability Oversight Council's Final Determination that Material Financial Distress at MetLife Could Pose a Threat to U.S. Financial Stability and that MetLife Should be Supervised by the Board of Governors of the Federal Reserve System and Be Subject to Prudential Standards --- [BonkNote] --- 387p
- (p172) - [LIRP - Life Insurance Retirement Plan / Life Insurance Policy as Investment / Savings]
- (p172) - Many life insurance and annuity products are purchased not only to pay death benefits in the event of the death of the insured, but also as a long-term investment vehicle to accumulate assets for savings or retirement.
- If policyholders were to lose confidence in the ability of MetLife's insurers to satisfy their obligations, they may prefer to bear the costs of surrendering their policies instead of risking potentially larger losses.
- (p171) - MetLife markets this "tax-free" withdrawal strategy across various insurance products that accumulate cash value.823
- 823 - For example, MetLife marketing material states that cash value life insurance can "Provide a smart way to save through its cash value. This is money that can be used for college, emergencies or during retirement without tax implications." See MetLife, "Life Insurance as an Asset," (2012)
- 2012 - MetLife - Life Insurance as an Asset - 14p
- (p172) - [Policy Loans] - Moreover, if policyholders wanted to keep their life insurance policies in effect, they could take out policy loans, which could also subject MetLife to a liquidity strain.
- (p172) - [LIRP - Life Insurance Retirement Plan / Life Insurance Policy as Investment / Savings]
- 2018 - Book - Statutory Valuation of Individual Life and Annuity Contracts | 5th Edition -- by Donna Claire, Lombardi and Summers --- [BonkNote]
- The typical "present value of future benefits less the present value of future net premiums" formula is challenging to apply to flexible premium universal life policies...
- ...since neither "future premiums" nor "future benefits" are known for any particular policy.
2020s
- 2024 0215 - GOV (House) - Protecting American Savers and Retirees from DOL's Regulatory Overreach, Bob Good (R-VA)
- PIABA - Joseph C. Peiffer, President, Public Investors Advocate Bar Association - 30p
- First, I'd like to talk about a group of approximately hundreds of investors across the country that myself along with Rikard & Protopapis represented. Our clients lived in in California, Utah, Illinois, Missouri, Kansas, Texas, South Carolina, North Carolina, Louisiana, Florida, Ohio, Arizona and Idaho. But, these investors exist all over the country.
- IRA Reboot, FIP - Future Income Payments,
- PIABA - Joseph C. Peiffer, President, Public Investors Advocate Bar Association - 30p
- 2025 - Richard Weber and Chris Kite