Life Insurance Buyer's Guide - LIBG

  • (p43) - Dan Andersen:  ....so we developed a buyer's guide concept where we want to explain how you use the index.
    • Well, if you explain how to use the index, you ought to explain what the policy is and what choices a buyer has,
    • and we became convinced that the worst decisions that were made weren't necessary because the buyer bought a high cost policy but that he bought an inappropriate policy for his needs and for his budget.
  • Senator Stone (D-FL).  In other words, what we're looking for is not relative cost so much as relevance.
  • Dan Andersen.  Right, relevance to the buyer's needs and abilities to pay.

--  Dan Andersen, director of the Life and Health Insurance Division and chief actuary of the Iowa Insurance Department and chairman of the Cost Disclosure Task Force of the NAIC

1975 1203 and 1204 - GOV (Senate) - Veterans Insurance Information Disclosure, Senator Stone (D-FL) - [PDF-989p-GooglePlay] --- [BonkNote]

NAIC (Draft and Final)

2018 - NAIC Life Insurance Buyer's Guide - 8p

2007 - NAIC Life Insurance Buyer's Guide  - 10p

2000 - NAIC Draft Life Insurance Buyers Guide  - PROC-2000-4Q_1 - 4p 

1996 - NAIC Draft redlined Life Insurance Buyer's Guide  - Draft 1996-3B 931 - 6p 

1993 - NAIC Life Insurance Buyers Guide - 5p 

1983 - ACLI Revised Draft Life Insurance Buyer's Guide only  - 1983-1 595 - 10p

1983 - ACLI Revised Draft Life Insurance Buyers Guide, letter and Disclosure Model Regulation  - 1983-1 523 - 27p 

1976 - NAIC Life Insurance Buyers Guide 1976-2 549 - 5p 

1973 - Interim NAIC Life Insurance Buyer's Guide - WishList

Other Versions

1978 - Federal Trade Commission (FTC) - Life Insurance Buyer's Guide - 12p 

1993 - Wisconsin - Life Insurance Buyer's Guide - 10p "Adapted from the 1983 Life  Insurance Buyer's Guide prepared by the National Association of Insurance Commissioners" 

 Wishlist:  The 1983 Life  Insurance Buyer's Guide prepared by the National Association of Insurance Commissioners

1980s

1981-12 - Journal - American Academy of Actuaries - Statement to NAIC,  RE: Dividends, Life Insurance Buyer's Guide - [PDF-12p]

  • EXHIBIT C:  POSSIBLE CHANGES IN SOME SECTIONS OF THE LIFE INSURANCE BUYER'S GUIDE - p151-153

The suggested changes to the buyer's guide (Attachment One-B2) incorporate several new ideas. 

  • Since that time, the Academy committee has been developing improved versions of its suggestions to the NAIC.  ATTACHMENT ONE-B2

POSSIBLE CHANGES IN SOME SECTIONS OF THE LIFE INSURANCE BUYER'S GUIDE

1981-2 NAIC Proc. 643

A new exposure draft of a revised model regulation has been prepared by the staff of the American Council of Life Insurance <ACLI>

The following are among the principal features incorporated in the revised draft:

  1. The introduction of the concept of a nonguaranteed element to measure the extent to which policy costs can be affected by premiums, benefits, or other items that are subject to change by the company without the consent of the policyholder.
  2.  A special plans section to accommodate the unique features of nontraditional plans such as universal life insurance.

1982-2, NAIC Proc. 

6. Reaffirmation of Life Insurance Buyer's Guide

  • Commissioner Yancey reported on the Life Insurance Buyer's Guide which is attached as Appendix A to the Life Insurance Disclosure Model Regulation.
  • He said a review of the NAIC Proceedings had  determined that the amendments to the Buyer's Guide adopted in 1984 were inadvertently omitted, so there is no permanent record of the current correct version.
  • He further commented that many insurance companies may be using the incorrect version from the model laws.

1988-2, NAIC Proceedings

1990s

6. Discuss Amendments to Life Insurance Buyer's Guide
Mr. Dunlap said that a small group consisting of Mr. Higgins <Regulator>, Brenda Cude (University of Illinois Cooperative Extension Service), and Chris Kite (FIPSCO) and himself had rewritten the buyer's guide (Attachment One-C).

1996-1 NAC Proceedings

Mr. Dunlap said, with this last change, the Buyer's Guide Subgroup considers its task to be complete.

  • He said the primary reason for revision of the Buyer's Guide was to make changes required by the illustrations regulation.
  • In addition, the subgroup took the opportunity to improve the wording of the Buyer's Guide to make it more readable.

    Upon motion duly made and seconded the Life Insurance Buyer's Guide was adopted (Attachment Three-B1a).

1996-3, NAIC Proceedings

Actuarial

1976, COST COMPARISONS AND POLICY LANGUAGE, Society of Actuaries

1979, Cost Disclosure, Society of Actuaries 

1981 - Academy Journal - STATEMENT 1981-12 - EXHIBIT C
POSSIBLE CHANGES IN SOME SECTIONS OF THE LIFE INSURANCE BUYER ' S GUIDE - (p151)

Academic

1978 - Consumer Accessing and Use of Information in Making Life Insurance Purchase Decisions, Jacob Jacoby - 124p

1981 - The NAIC Model Life Insurance Solicitation Regulation: Measuring the Consumer Impact in New Jersey, Roger A. Formisano - 22p

Life Cost Comparison Working Group

Life Disclosure (A) Working Group 

  • Cost Indices Subgroup of the Life Disclosure Working Group
  • Buyer's Guide Subgroup

WishLists

1973 Interim Version of the NAIC Life Insurance Buyer's Guide

The 1983 Life Insurance Buyer's Guide prepared by the National Association of Insurance Commissioners

ATTACHMENT THREE-B1
Report of the Cost Indices Subgroup of the Life Disclosure (A) Working Group

The Cost Indices Subgroup of the Life Disclosure Working Group met by conference call on Aug. 15, 1996, to discuss the
appropriate use of cost indices in the Life Insurance Buyer's Guide and broader issues regarding the use of cost indices. The following regulators participated: Tom Foley (N.D.), Chair; Christian Uhlmann and Mae Gabor (Alaska); Frank Dino (Fla.); Lester Dunlap (La.); John Rink (Neb.); Tony Higgins (N.C.); Dan Keating (Okla.); and Ted Becker (Texas). 

The group first considered a suggestion from Chris Kite (FIPSCO) for a new type of index that would allow consumers to compare the assumptions in the illustration. The group reviewed comments in favor of and opposed to the method described by Mr Kite. Mr. Kite said his index has the advantage of prompting the prospect to question assumptions used. Delmer Borah (MassMutual) suggested that consumers are more concerned about total cost than assumptions. Brenda Cude (Cooperative Extension Service) opined that the target audience does not care about assumptions. Tony Higgins (N.C.) said he was unconvinced about the need for indices, seeing them as an intellectual exercise that would not benefit the public. The consensus of the group was that none of the indices available are clearly superior at comparing policies in a meaningful way. Some are so technical that consumers and maybe agents cannot grasp the nuances. The subgroup decided to include only a
general description in the buyer's guide and not to get into the technical aspects of the different indices. Lester Dunlap (La.)
asked that further comments on the guide be limited to the description of the use of cost indices (Attachment Three- Bla).
The group then looked beyond the immediate concern about what to put in the buyer's guide and considered the broader issues
in the charge to the Life Insurance (A) Committee. The group decided a good starting point would be to make a list of indices
that were useful Tom Foley (N.D.) asked those who felt a certain index should be considered for a list of recommended indices
to forward that information to him. A list of useful indices would serve as a good starting point for discussion at the ball
National Meeting.

1993-3B, NAIC Proceedings (p931)