Life Insurance Illustration Questionnaire

Definition of "Life insurance illustration questionnaire"

Form whose purpose it is to help the agent and the prospective policyowner judge the validity of the insurance company's policy illustrations. This questionnaire's focus is on the nonguaranteed elements of the policy and how these nonguaranteed elements compare with the company's current experience. Some of the questions this questionnaire seeks to answer include:

  1. To what degree are the mortality rates in the illustration reflective of the true mortality rates that the company is currently experiencing?
  2. To what degree are the interest rates in the illustration reflective of the true interest rates that the company is currently experiencing? Upon what is the interest rate to be based (new money or portfolio average)?
  3. To what degree are the expense charges in the illustration reflective of the true expense charges that the company is currently experiencing? Are these expense charges significantly understated in the illustration?
  4. To what degree are the persistency rates in the illustration reflective of the true persistency rates that the company is currently experiencing? Are these persistency rates significantly understated in the illustration, thereby increasing policy cash value?

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