Big R.O.P. Changes Are Coming Soon!

[Mark]

I can help! I can! Look! Loooook!


CCC doesn't stand for anything. It's Actuarial Guideline CCC (AG CCC), and the CCC is Roman numeral notation for 300. Actuarial Guideline 300.

At least, that's the closest thing I can figure out from my readings.

YOu are correct. It does not stand for anything. It is just what it is called and it is in the new Actuarial Guideline.

Reminds me of the triple xxx law of 1999. I still don't know what it had to do with xxx. LOL. For those that don't know, it had to do with reserves.

 

[arnguy]

If you tell me you were born in a manger to an unwed mother I may have to barf . . .

Well, Bob, I don't remember anything about a manger. I am not sure about the unwed mother part, but I do recall the swaddling clothes. After all, it was the Great Depression and diapers were expensive!

 

[CHUMPS FROM OXFORD]

Actually the "xxx" was representative of each company's reserves (in billions of dollars) that had to be converted under the new system. Each company shared those numbers with each other, but not with the public.

So, the "xxx" actually represented three digits of this secret number. The originator of this idea was one of the Senators involved with the Gramm-Leach-Bliley Bill of 1999 (I forget which one).

 

[ABC]

I ran this recently using sagicor 20-year term. Worked out to 6.128%. Mind you, that is the tax-free rate of return.

I then thought, what if the client was 20 years older today, took the lump-sum and purchased a SPWL.

Next, I took the cost of the 20-year with ROP and put it into a WL policy.

By placing the money in a WL policy, the client has less insurance in the early years, but a higher face amount in 20 years compared to the SPWL.

So what kind of cash value does the client have in 20 years (assumed)?

If you compare that to an ROP policy what is the difference at the 20 yr mark. Cash value vs ROP?

I just did a comparison of a UL vs ROP. The cash value of the UL after 20 years was less than the ROP return of premium.

The premium on the ROP was about $500 less a year vs the UL.

 

[dgoldenz]

So what kind of cash value does the client have in 20 years (assumed)?

If you compare that to an ROP policy what is the difference at the 20 yr mark. Cash value vs ROP?

I just did a comparison of a UL vs ROP. The cash value of the UL after 20 years was less than the ROP return of premium.

The premium on the ROP was about $500 less a year vs the UL.

The client will also have nothing left after 20 years with the ROP, whereas the UL will still continue on forever....how much is the premium for the client to buy a UL after 20 years? Probably 3 times the price IF they are still in the same state of health. Cash value is meaningless if you die.

 

[AtlantaLife&Health]

Mark, you said that if the clients cancels in year 3, that they would have to give most of their money back. What would that do to your commission? Would you get a chargeback?

 

[annuityseller]

So that's what XXX stands for reserves on those movies I bought years ago!!!!!!!!!!!!

 

[Mark]

Mark, you said that if the clients cancels in year 3, that they would have to give most of their money back. What would that do to your commission? Would you get a chargeback?

Only if they cancel in the 1st year, would you have to give your commissions back.

 

[Mark]

InsuranceNewsNet Magazine . The Compliance Issue - June 2009

xrac shared this with me.