Put Variable Product Illustrations On IPads: Ben Baldwin to SEC
March 5, 2019 by Allison Bell
A longtime life insurance agent says the current U.S. Securities and Exchange Commission effort to create a summary prospectus for variable life insurance and variable annuity contracts is on the wrong track.
Benjamin Baldwin Jr. — an Illinois financial services veteran who holds the Chartered Financial Consultant and Certified Financial Planner designations as well as the Chartered Life Underwriter designation — has told the SEC that the fundamental problem is that simple paper illustrations do a poor job of showing how variable products will really work.
The SEC should focus less on trying to create a great paper-based summary for variable products and put more emphasis on interactive systems, Baldwin writes, in a comment on the SEC’s variable product summary prospectus project.
“Provide consumers and agents with an iPad-like device having the ability to vary the assumptions used in a visual illustration, enabling the agent and client to see the effect on policy capital as the inputs are changed,” Baldwin writes.
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