Illustrations – Disclosure

Illustrations – Disclosure

“So what do I think is needed? Today’s disclosure is far too complex. If policyholders
can’t understand most illustrations even with help, what are they to do? There’s
information overload. The regulations we have are not being used consistently across
the country. More numbers are not necessarily the answer, but maybe less are.
More words are necessary to explain what’s going on. The regulations, if they are
changed, should force more disclosure of what the risks are and “what if” illustrations
should be mandated. We have to make clear to the policyholder that the illustration is
not a prediction, it does not promise what’s going to happen.”  MR. BRUCE E. BOOKER
1993, SOA, Sales Illustrations – We Can’t Life with Them, But We Can’t Life Without Them!