George Coleman

George Coleman

MR. GEORGE COLEMAN: Obviously, this isn’t the first time the industry and the regulators have become involved in disclosure and with illustrations.

The NAIC models are replete with examples of actions taken to regulate the form of disclosures to consumers, the Model Disclosure Act, Life Disclosure Act, the Advertising Regulation, guidelines on marketing to seniors.

There are guidelines on variable products that people aren’t very familiar with, and any number of such proposals.

The engine for the current effort at the NAIC, which I was involved in from the start or almost from the start, were hearings conducted by Senator Metzenbaum in the fall of 1992.

Those hearings focused on problems that were occasioned by the use of some abbreviated payment plans.

The concern was that, with the declining interest rates, policies were failing to abbreviate or vanish, as some people call it.

There was an expectation perhaps on the part of some consumers that they would vanish in all events at the end of six years or seven years or whatever, and that wasn’t happening.

1994 – PROBLEMS AND SOLUTIONS FOR PRODUCT ILLUSTRATIONS – 28p, Society of Actuaries