Options

Options

NAIC Working Groups

2016/4/3 – LIIIWG CC, NAIC Proceedings

<Mr. Lovendusky – ACLI> said the ACLI work group thinks that most confusion for consumers involves complex products like universal life, and not Simple products like term life. He said consumers are mostly confused about options, guarantees and riders.

The ACLI work group was considering asking the life insurance and Annuities (A) Committee to narrow the charge to look at only products with options, guarantees and riders, but Ms. Cude said she thinks that it is important to consider how the disclosures for all products could be improved.

Many insurance contracts offer the policyowner options regarding premium payment, benefit patterns, and policy loans.

This flexibility means that many different patterns of future cash flow could arise under the contract.

2002 – Fair Valuation of Insurance Liabilities: Principles and Methods (page 6)
            American Academy of Actuaries