Financed Premiums

  • 2011 0629 - Forbes - Wild Pitch, by Deborah L. Jacobs - [link]
    • Merill Lynch, Pacific Life, Minnesota Mutual
  • [Lawsuits]
  • 2024 0418 - The Granddaddy of All Premium Finance Litigation, by Larry J. Rybka, Chairman and CEO at Valmark Financial Group - [link]
    • Stephen C. Baker recently posted about a mega premium finance case that is currently being litigated in New York in the case of Aronson v. Brave Strategies, LLC.
    • Besides involving $150 million of total death benefit across three carriers, what makes this case notable is that it is based on an alleged violation of New York’s Best Interest standard of care. 
    • See Stephen’s blog post here.
  • E. What are the advantages and disadvantages of the "Bank Loan Plan" under which a policyholder purchases a limited payment life policy and borrows part of the premiums at a bank, thus obtaining an interest deduction for Federal Income Tax purposes?

1953 - SOA - General - Society of Actuaries - 11p

  • Financed Insurance
    • A. What lapse experience has developed on business financed at or near issue through either policy or bank loans?
    • B. Is the amount of such financed business increasing or decreasing and, if so, why? What measures have been taken to limit the amount of such business and what are their merits and demerits?
    • C. To what extent is the exercise of the Fifth Dividend Option in practice being confined to policyholders interested in minimum deposit policies, and why?

1961 - SOA - Individual Life Insurance: Financed Insurance, Society of Actuaries - 5p