Life Insurance

In: Economic Issues, Problems and Perspectives

Abstract

Intro -- LIFE INSURANCE SELECT PROGRAMS AND ANALYSES -- LIFE INSURANCE SELECT PROGRAMS AND ANALYSES -- CONTENTS -- PREFACE -- Chapter 1 FEDERAL EMPLOYEES' GROUP LIFE INSURANCE: RETIREMENT BENEFIT AND RETAINED ASSET ACCOUNT DISCLOSURES COULD BE IMPROVED* -- WHY GAO DID THIS STUDY -- WHAT GAO RECOMMENDS -- WHAT GAO FOUND -- ABBREVIATIONS -- BACKGROUND -- FEGLI Insurance Coverage and Costs -- Adding or Adjusting FEGLI Coverage -- Payment of FEGLI Benefits -- ALTHOUGH SIMILAR TO PRIVATE SECTOR PLANS, FEGLI HAS DISTINCT EMPLOYEE BENEFITS AND COSTS THAT ARE NOT CLEARLY DISCLOSED -- Some FEGLI Features Are Similar to Those of Private Sector Group Life Insurance -- Unlike Private Group Life Plans, FEGLI Assumes Most of the Insurance Risk -- Certain FEGLI Features and Benefits Can Result in Higher Costs for Employees Compared with Private Sector Group Term Insurance -- Although FEGLI's Disclosures Cover Key Aspects of the Program, They Do Not Cover Some Important Features -- IN OVERSEEING FEGLI, PROCESSES FOR SETTING PREMIUM RATES COULD BE IMPROVED -- OPM Performs Many of FEGLI's Administrative and Operational Functions and Works Closely with MetLife -- Under OPM's Administration, FEGLI Funding Has Been Sufficient to Pay Claims and Meet Program Liabilities -- OPM's Processes for Achieving the Goal of Providing a Low-Cost Benefit to Federal Employees Lacked Clarity -- OPM Lacked Clear, Documented Processes for Considering FEGLI Premium Rate Changes -- RAAS ARE NO LONGER THE DEFAULT SETTLEMENT OPTION, BUT BETTER DISCLOSURES ARE NEEDED -- RAAs Were the Default Option from 1994 to 2011 -- Industry Views Vary on the Benefits and Consumer Protection Concerns from RAAs -- Insurance Industry Organizations Have Issued Guidance to Improve RAA Regulation -- Recently Improved FEGLI RAA Disclosures Still Lack Important Information