• James Pilgrim: My question is both to Walt and Fred.
  • When you talk about universal life being a way to sell lower cost coverage by virtue of the policyhoIder's paying the minimum premium to keep the policy in force, aren't we going to find down the road, and particularly for companies whose cost of insurance is a select and ultimate cost of insurance as opposed to an aggregate cost, that we might be experiencing some of the same things with universal life products that we have experienced on term insurance, that we really end up with a select and ultimate term product with a minimum premium?
  • Have we installed systems to measure that, particularly relative to premium, and what are we going to do when we get there?
• Walter Miller: I hope that your question gets printed in bold-faced capitals when this session finally comes out in the Record.
  • It is a very important point, and having been one of those who qualified for the naivete of the year award, already, I will just keep on that track and express the hope that most of us who are involved in pricing and repricing and designing universal life have learned our lesson about what happens when you get into the select and ultimate game for term pricing.
• Fred Jonske: I would concur with Walt.
  • I hope that you might want to write your congressman or congresswoman and have that added to both the Democratic and Republican platforms at the next convention.
  • I hope we shy away from the select and ultimate end of universal life; we certainly are not advocating that, at this point in time.

1984 - SOA - Individual Term Portfolio Management, Society of Actuaries - 22p