"Funded Plans"

• III. FUNDED PLANS OF LIFE INSURANCE (UNIVERSAL LIFE) AND ANNUITIES (LATER CHANGED TO UNIVERSAL LIFE AND RELATED PLANS OF LIFE INSURANCE AND ANNUITIES)    

1982-4, NAIC Proceedings

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• A few companies have introduced a product known as Universal or Total Life.
• The concept involves...the company withdraws an amount sufficient to pay the premiums for an annual renewable term coverage for the amount selected for the for the current policy year. (p70)

1982 - Book - Life Insurance - Huebner and Black   

[Bonk: This passage was in Chapter 5 titled "Term Insurance]

• Similarly, life insurance contracts such as universal life and indeterminate premium and adjustable life are all forms of life insurance possessing the same risk-shifting attributes as their more traditional predecessors.
• They merely afford purchasers greater flexibility in designing their contracts so as to meet their individual needs." 

--  STATEMENT OF THE AMERICAN COUNCIL OF LIFE INSURANCE <ACLI>, BEFORE THE NASAA/NAIC JOINT REGULATORY INSURANCE PRODUCTS STUDY COMMITTEE

1982-1, NAIC Proceedings

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• In fact, it is accurate to describe Universal Life as a generalized version of the actuarial formulas underlying traditional life insurance products.
• In other words, it is possible to produce any traditional plan of insurance from the generalized formulas underlying universal life.

--  Alan Richards, president and chief executive officer of E. F. Hutton Life Insurance Co.,

1983 - GOV -  Tax treatment of life insurance: Hearings before the Subcommittee on Select Revenue Measures of the Committee on Ways and Means, p448

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• The "unbundling" of services and other product differences  between Universal Life and Ordinary Life cause current literature to be inapplicable, as well as insufficient, for Universal Life.
  

1984 - American Academy of Actuaries - STATEMENT 1984-32, Academy Journal - p217

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• One could almost argue that universal life is an outgrowth of deposit term.

-- Fred Jonske

1984 - INDIVIDUAL TERM PORTFOLIO MANAGEMENT. Society of Actuaries - 

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• A universal life policy with a large insurance component can become a close substitute for renewable term insurance...

1984 - GOV - THE TAXATION OF INCOME FLOWING THROUGH LIFE INSURANCE COMPANIES, U.S. Treasury Department - 80p 

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• Mr. Montgomery <Regulator> commented on the flexible premium universal life policy and the fact that it is not really a whole life policy, but a term policy until the premium is actually paid.

1988-2, NAIC Proceedings

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Commissioner Hager of the Universal & Other Plans (A) Task Force stated that there appeared to be disclosure problems with universal life plans and that the identification of these items should be placed on the Actuarial Task Force agenda.

Some of the items identified which should be disclosed:

• (1) what is guaranteed versus what is not;
• (2) adequate disclosure of the fact that a premium quoted will not support the contract for the whole life if the policy is a universal life policy;
• (3) disclosure of the guaranteed surrender values on a flexible premium policy."

1988-2, Universal Life Insurance Model Regulation, Proceeding Citations

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• The first universal life policies showed compliance on the minimum plan-a yearly renewable term policy.
• Deductions for benefits were within the statutory mortality table, and expense loads were either level, or met the definition of expense allowance for a yearly renewable term policy.
• The adoption in 1983 of the Model Regulation for Universal Life provided recognition that these policies could be configured as whole life policies.

 1989-1, NAIC Proceedings

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• It's very possible to have a 25-year term with zero cash value, using a UL product.

--  LAWRENCE SILKES

1990 -  LIFE PRODUCT DEVELOPMENT UPDATE, Society of Actuaries

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• He said many consumers cannot distinguish between universal life and whole life.
• He said a narrative explanation was needed because many did not understand the numbers or the fact that a universal life policy might drain the cash value until there was no coverage left.

--  He - Mr. Barkacs <Western Southern> 

1994-3. NAIC Proceedings

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• I think you really have to make sure that people understand volatility, whether you solve for a policy blowing up or values being halved.
• I think you have to catch people's attention, and that is all to the good.

--  Mr. Coleman (Prudential) Technical Resource Group (NAIC)

1994 - PROBLEMS AND SOLUTIONS FOR PRODUCT ILLUSTRATIONS , Society of Actuaries