Surprises
- UL, by its nature, tends to have bigger and later surprises.
-- Daniel F. Byrne, M Financial Group
1999 - SOA - The Next Generation Universal Life, Society of Actuaries - 30p
- (p14) - Baird WEBEL (CRS-Congressional Research Service). I was actually struck in that New York Times article when they talked about the insurance companies themselves setting up captives because that is not what you typically think of.
- Chairman Jack REED (D-RI). Right.
2011 0914 - GOV (Senate-Banking/SII) - Emerging Issues in Insurance Regulation, Senator Jack Reed (D-RI) --- [BonkNote]
- The sale of par business on a vanishing-premium basis has been well established in the last few years.
- Dividend reductions can lead to unpleasant surprises, to the extent that policyholders and agents have relied on a continuation of the current dividend scale to fund the vanish year.
- Prudence and recent history suggest that vanish years should be carefully explained, and perhaps illustrated, with some margin for dividend reduction.
- Companies and agents that are service-oriented will find ways to communicate to policyholders changes in their vanish year before the arrival of a surprise announcement that more money is necessary or that the insurance program will either pay less than expected or terminate prematurely.
-- Robert J. Smardon, Vice President of Individual Products for the U.S. operations of Sun Life of Canada
1991 - SOA - Life Products, Society of Actuaries - 22p