Traditional
- (p1) .....American consumers pay a bill without having more than a somewhat vague idea of what they are buying.
- If this were the result of flimflam, enforcement agencies would have been all over the sellers years ago. But this is not intentional flimflam it is as the man in "Fiddler on the Roof” explained away so many things— "tradition."
- These 140 million consumers, at an outlay of about $23 billion a year, are buying life insurance policies.
-- Senator Philip Hart – (D-MI)
1973 0220 - GOV (Senate) - The Life Insurance Industry, Part 1 of 4, Philip Hart (D-MI) --- [BonkNote-Part 1 of 4]
- 1988-2, NAIC Proceedings - (p411)
- Date: May 16, 1988
- To: Dave Becker
- From: Doug Doll
- Subject: Fixed Premium Universal Life
- In the traditional product no one can "see" the inner workings where mortality, interest, and expense are at work to produce the dividend scale.
- As a result, the magnitude and incidence of dividends must be accepted by the buying public and the regulatory bodies.
- And they are relying on the company to follow the contribution principle.
- In fixed premium universal life the mechanic is open for inspection.
- But events that are now observable may be misinterpreted.
- Our concern relates to the lack of clarity as to the meaning of this paragraph.
- The words "traditional plan" are particularly troubling.
- Does this mean a universal life policy, a whole life policy, or a term policy?
- We are concerned that the vagueness of this wording will once again lead to different interpretations by the reader.
- Also, we are concerned that this wording may be an attempt to hold the same reserves for universal life insurance and whole life insurance, which we strongly believe is incorrect.
- Universal life and whole life are entirely different product structures, with different products features, and consumers buy these products for different reasons and purposes.
- Therefore, reserves for these products should be different.
2004-4, NAIC Proc