No Load Life Insurance from TIAA-CREF
I came across this post by blogger and financial planner Michael Kitces. Kitces does an excellent job explaining TIAA-CREF’s no-load life insurance contract along with its benefits and down-sides, and even the comments to Michael’s post are informative themselves. It’s not clear to me how extensive the fee-only advisory network is in Manhattan; probably larger than in any other city I would imagine if for no other reason than the population of New York is large and generally wealthier on average than most other cities. It’s hard to see though how fee-only advisors, and therefore TIAA-CREF’s product is ever going to make a significant dent in the marketplace. Marketed under the “Intelligent Life” brand, the prospectus for the VUL and it funds exceeds 1,000 pages, so you’ll have to read Mr. Kitces analysis of the product as I won’t be able to get to this for quite some time. I’m going to reach out to the TIAA-CREF contact for more information and perhaps report back on what I find.
UPDATE: Interestingly, I stopped today at Kitces.com and his site is down. I hope he’s all right.
Producer Compensation Issue to be Addressed by New York Superintendent of Insurance
NAIFA reports today in an email that:
“The New York State Superintendent of Insurance and the Attorney General will conduct Public Hearings in New York City, Albany, and Buffalo this month, to obtain the views of interested persons about the proposed addition of a new regulation to the Insurance Department s regulations regarding permissible forms of insurance producer compensation and disclosure by insurance producers of all forms of compensation.
NAIFA’s email continues that the public hearings will address
“The Attorney General and the Superintendent are interested in learning to what extent contingent, supplemental
and flat percentage commissions are currently leading to steering or other deceptive or anti-competitive practices
in the marketplace, and to understand what mechanisms are most effective to curb such practices.
“Testimony is being solicited on topics pertaining to the form and disclosure of producer compensation (including
contingent commissions) such as:
- whether disclosure of compensation is necessary;
- whether disclosure requirements should apply to all agents and brokers;
- whether disclosure should be required when the amount of producer compensation cannot be ascertained at the outset of the customer/producer relationship;
- whether there are certain categories of transactions that should be exempted from some or all disclosure requirements;
- whether certain types of compensation should be permissible and,
- whether steering associated with contingent commissions should be considered an unfair act or practice within the meaning of Article 24 of the Insurance Law.
The Manhattan hearing is down at NYU on July 25th, 60 Washington Square South, 4th Floor auditorium.
I am trying to think of what industries are subject to rules similar to those which are under consideration. Whether you’re buying a refrigerator at PC Richards or a stereo at Best Buy or legal services or having your house painted or your hair cut; who is required to report their compensation?