Tom Bakos

Thomas L. Bakos: Anybody who believed an illustration that purported to demonstrate cost would be a foolish person.

1991 – SOA – Illustrations, Society of Actuaries — [BonkNote] — 20p

One of the first things that a serious reader of the NAIC Life Insurance Illustrations Model Regulation will realize is that it is not a tightly written document.

— Thomas L. Bakos, Guardian, will speak as the appointed illustration actuary of a life insurance company

1996 – SOA – Implementing the Illustration Regulation: The Clock Is Ticking, Society of Actuaries – 25p

Tom BAKOS: Well, I guess I’d just like to mention that I think actually UL was developed in 1960-something-or-other.
FROM THE FLOOR: That was adjustable life.
Tom BAKOS: I think Cannibal Life was the precursor.

2003 – SOA – Do You Know How Much You’re Spending? The Hidden Costs of Product Complexity, Society of Actuaries – 19p

I think a point made earlier, and one I have certainly heard discussed, was that profit, or a measure of profit, does not need to be included in the derivation of a disciplined current scale.
- Although that may be theoretically true, it may be a practical impossibility to actually create a disciplined current scale with no profit because the self-support and lapse-support tests have to be met.
- It seems to me that a company cannot sell a policy and pay dividends or have other nonguaranteed elements that were derived on the basis of no profit. They have to reflect profit at some point in time.
- One of the results of this disclosure item is that when profit, which may not have been included before, is introduced into a currently payable scale, it would probably have to be disclosed at that time. It could be a little embarrassing.

— Thomas L. Bakos

1996 – SOA – Implementing the Illustration Regulation: The Clock Is Ticking, Society of Actuaries – 25p