Replacements 1035 Exchange Churning Disintermediation Twisting Agency Problems: Policy Replacements A. What information is available on the extent of policy replacement abuses? What steps have individual companies taken to control replacements of existing policies? What procedures have companies adopted to meet the several state regulations regarding replacements? 1961 – SOA – Agency Problems: Policy Replacements, Society…

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Tony Spano 1990 – SOA – Quality of Life Insurance Sales Illustrations, Society of Actuaries – 16p Tony Spano (ACLI):  I’m going to discuss what Norm referred to as consumer disclosure forms. ⇒  Policy Information for Applicant – Universal Life Policy – NAIC  — [BonkNote] 1993 – NAIC – Policy Information for Applicant – Universal Life – Life Insurance Disclosure…

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Policy Mechanics / Cash flow / Works Until the buyer understands how the product works, attempts to compare price are essentially meaningless. 1972 – SOA – Life Insurance and the Buyer, by Anna Rappaport, Society of Actuaries – 2p-Article Buyers of life insurance are entitled to descriptions of their policies and how they work. But…

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Ralph Nader Didn’t Say It Note that the data is not from Ralph Nader, but from LIMRA and the NALU [NAIFA]. —  Randall P. Mire 1983 – SOA – The Future of Whole Life Insurance–A Debate, Society of Actuaries – 24p Basing an industry of this size on public gullibility is a completely unsound premise.…

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Consumer Issues Disclosure Working Group – (A) – NAIC Adopted report of the Consumer Disclosure Issues Working Group, including a time frame for developing a Universal Life Disclosure Form for adoption in December. Received the Life Insurance Marketing Research Association test market results of the universal life disclosure form. 1990-4, NAIC Proc. Focus Groups Product Development Task…

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Policy Overview / Policy Summary / Cover page / Narrative Summary Policy Overview Ideas [George Coleman]… said that the NAIC had formed a resource group last November to assist and recommend changes. The resource group recommended a cover page to the illustration to include essential information about the illustrated policy.  —   George Coleman, Prudential, ACLI,…

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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…

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Media Media – Index Press Press Releases Court Video Network – cvn.com/ 1978 0406 – NYT – $1.9 Million Payment Ordered in Libel Case – [link] A judge has ordered The Twin Falls Times News to pay $1.9 million in libel damages after it refused to disclose its sources for articles that an insurance company said ruined…

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Complaints (p33) – Bob CORKER (R-TN) – You know, there are very few complaints. I mean, life insurance is not what drives complaints at your State Insurance Commissioner’s officer, really, is it? It is just a small percentage, is it not? 2009 0317 – GOV (Senate) – Perspectives on Modernizing Insurance Regulation, Chris Dodd (D-CT)  —  [BonkNote]…

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Disclosure Disclosure – Index The purpose of disclosure is to let the life insurance buyer know what he’s getting.  —  Russell R. Jensen 1977 – SOA – Cost Disclosure in Individual Life Insurance – Society of Actuaries – 18p …. I agree that failure to disclose not only misrepresents but also sows the seeds of destruction. …

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