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State Guarantee Funds and Pension Guarantee Funds

January 1, 2008

Many industries with exposure to financial markets have established government-run guarantee programs to protect consumers if an individual institution should become insolvent. Recent developments in the financial markets raise questions over the ability of government guarantee funds to handle multiple institutional failings. The reserving methodologies, specifically, have come into question. The FDIC has had to [...]


Many industries with exposure to financial markets have established government-run guarantee programs to protect consumers if an individual institution should become insolvent. Recent developments in the financial markets raise questions over the ability of government guarantee funds to handle multiple institutional failings. The reserving methodologies, specifically, have come into question. The FDIC has had to devise innovative new strategies to combat their current situation. However, it remains to be seen if state and pension guarantee funds will be afforded such flexibility to provide added consumer protections. Without further analysis of the situation, consumers will be ill-equipped to make the best possible decisions regarding their retirement and estate planning.


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Risk Modeling and Portfolio Management

As demonstrated in the recent financial fallout, adherence to proven risk modeling and portfolio management techniques is paramount in ensuring financial viability. As insurance-related products emerge as an asset class, it is important that work is published to better educate investors regarding both the unique risks involved and the opportunities available as new investment markets [...]


As demonstrated in the recent financial fallout, adherence to proven risk modeling and portfolio management techniques is paramount in ensuring financial viability. As insurance-related products emerge as an asset class, it is important that work is published to better educate investors regarding both the unique risks involved and the opportunities available as new investment markets materialize.


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Insurance Linked Securities

Insurance-related investment products are poised to emerge as a dynamic new investment class as investors search for alternate sources of investment returns and methods to manage risk. It is critical, therefore, to identify and analyze these opportunities to enhance investors’ decision making processes.


Insurance-related investment products are poised to emerge as a dynamic new investment class as investors search for alternate sources of investment returns and methods to manage risk. It is critical, therefore, to identify and analyze these opportunities to enhance investors’ decision making processes.


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Long-term Care Insurance

US citizens are living longer than ever before. Unfortunately, traditional long term care policies may no longer provide adequate protection for seniors during their golden years. Thorough analysis of this industry is required in order for consumers to make informed decisions regarding their retirement planning.


US citizens are living longer than ever before. Unfortunately, traditional long term care policies may no longer provide adequate protection for seniors during their golden years. Thorough analysis of this industry is required in order for consumers to make informed decisions regarding their retirement planning.


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State vs. Federal Regulation of Life Insurance

Given the current financial climate, many are advocating the creation of a federal regulator to oversee the multi-trillion dollar life insurance industry. Proponents of state-based regulation have cited the fact that the ability for the life insurance industry to honor claims has never been in doubt due to financial insolvency. While good arguments exist on [...]


Given the current financial climate, many are advocating the creation of a federal regulator to oversee the multi-trillion dollar life insurance industry. Proponents of state-based regulation have cited the fact that the ability for the life insurance industry to honor claims has never been in doubt due to financial insolvency. While good arguments exist on both sides of the debate, it is likely that the current regulatory system will experience some changes, and the ramifications of these changes are unknown. What is known is that stakeholders need non-biased analysis of the current situation in order to make informed decisions.


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Financial Ratings vs. Stress Tests

The current model of “financial ratings” – institutions paying the rating agencies for a rating – is broken. They were as much a cause of the 2008 financial meltdown as anything else, but ratings entities refuse to accept culpability for their role in the crisis. With investor confidence shaken and new proposals for regulatory frameworks [...]


The current model of “financial ratings” – institutions paying the rating agencies for a rating – is broken. They were as much a cause of the 2008 financial meltdown as anything else, but ratings entities refuse to accept culpability for their role in the crisis. With investor confidence shaken and new proposals for regulatory frameworks circulating, the question is: what role, if any, should the ratings agencies play in the new financial system? If they remain a part of the financial system, how should they be changed, what should they include, and should stress tests be a part of the equation?


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Economic Value of Insurable Capacity

Each person has a vaguely determined life insurance capacity, i.e., the maximum insurance allowed. How is this determined? Does this capacity have a value? How much is it? Further, an analysis of insurable capacity is not complete without an examination of insurable interest. The insurance industry is wrought with inconsistencies involving this concept. Issues such [...]


Each person has a vaguely determined life insurance capacity, i.e., the maximum insurance allowed. How is this determined? Does this capacity have a value? How much is it? Further, an analysis of insurable capacity is not complete without an examination of insurable interest. The insurance industry is wrought with inconsistencies involving this concept. Issues such as COLI, BOLI, STOLI represent gray areas of what constitute insurable interest.


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Grant Criteria and Procedures

November 1, 2007

Research and study focuses will be considered based on their demonstrated support of ISI goals. Initial screening of a project requires a research and study outline that defines the project focus, procedures, information resources, expected product, performance measurements, project team qualifications and leadership, estimated costs and time schedule. If ISI President grants preliminary support, project [...]


  1. Research and study focuses will be considered based on their demonstrated support of ISI goals.
  2. Initial screening of a project requires a research and study outline that defines the project focus, procedures, information resources, expected product, performance measurements, project team qualifications and leadership, estimated costs and time schedule.
  3. If ISI President grants preliminary support, project leader and/or team will be required to meet with ISI President at which time the project will be reviewed and if the project continues to earn the President’s support, requirements will be established for a comprehensive Project Plan.
  4. Upon receipt and acceptance of the Project Plan, and after revisions and expansions as required, ISI President will recommend the project to ISI Board of Directors.
  5. ISI Board of Directors reviews recommended projects and approves or disapproves. If approved, the Board of Directors appropriates funding as required by the project.
  6. Each approved project will require a signed agreement which will include the detailed project plan, responsibilities of the project team and leadership, responsibilities of ISI and clarification of ownership of the project products. All project work, information, findings and reports shall be held confidential until released by ISI.
  7. Payment of funding is scheduled as per the project agreement. Typically, project expenditures, as incurred or per a schedule, will be invoiced to ISI with appropriate and required documentation for approval and prompt payment by ISI.
  8. Depending on the project scope, complexity and time schedule, interim reports may be required by ISI upon which further project funding may be contingent on ISI acceptance and progress approvals. ISI provides reminders to project leaders of reporting requirements and is accessible to project leaders.
  9. Upon completion of research and study projects, comprehensive reports will be required by ISI and must be written and completed to ISI standards and acceptance. Final funding may be withheld pending completion and ISI acceptance of final project reports.
  10. All project products, including but not limited to: data, findings, communications, computer models and programs, reports, patents, copyrights, designs, analyses, theories, contracts, equipment, notes and confidential information are the sole and exclusive property of ISI unless otherwise agreed in writing.
  11. All reports will be published by ISI, or as may be otherwise agreed, in the ISI standard report format and copies will be given to the project team. The project team may be authorized by ISI to use the products of the project in their personal or other business endeavors, but with the requirement that any and all such uses include clear disclosure that all such products are the proprietary property of ISI and may not be further used without ISI approval.


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