Ang Moh Refuses to Accept PAPee's BS

[makapaaa]

And 154th has to lan lan publish his rebuttal cos he's an ang moh?

<TABLE border=0 cellSpacing=0 cellPadding=0 width="100%"><TBODY><TR>Give up present model of 'hide and deny'
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<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->I REFER to Monday's replies to the Forum page, 'Orphaned money doesn't exist' jointly attributed to the Life Insurance Association of Singapore and the Singapore Actuarial Society; and ''Asset share' concept already in use: MAS' by the Monetary Authority of Singapore.
Asset share is like net asset value used for unit trusts. It is each investor's proportionate ownership in the fund. It is the price at which they can buy and sell. Life insurers in Singapore acknowledge that they pay less than the asset share when a policyholder leaves the fund, especially when the policy is surrendered before maturity.
These underpayments have accumulated over the years and are held in an account known as 'orphaned money'. It is an informal term and each life insurer names the account differently. None discloses the name it uses or where it holds the money.
Two troubling features about orphaned money are that:

In countries like Britain, orphaned money legally belongs to stockholders and is held in the stockholders' fund.

In Singapore, we do not know where it is held and life insurers will not even acknowledge it exists. Of course, this makes it difficult for policyholders to assert their claim.
Singapore life insurers continue to build their orphaned money by paying less than the asset share upon early surrender. It can also happen for policies held to maturity by the underpayment of periodic and terminal bonuses.
Singapore life insurers should do the following:

First, disclose the asset share for each policyholder. Life insurers have the information. It is simply a matter of reporting it. Every unit trust in the world does it for each of its investors.

Second, disclose the orphaned money held in policyholders' and/or stockholders' funds over the past 10 years.

Third, pay out the asset share and orphaned money according to a formula. A successful model is the one used in Malaysia since July 1, 2005.

Fourth, give up the present model of 'hide and deny'.
Larry Haverkamp

 

[makapaaa]

<TABLE border=0 cellSpacing=0 cellPadding=0 width="100%"><TBODY><TR>Aug 29, 2009
DECIDING PAYOUTS
</TR><!-- headline one : start --><TR>Insurers have too much latitude
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<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->I REFER to Monday's replies, ''Asset share' concept already in use' by the Monetary Authority of Singapore (MAS) and 'Orphaned money doesn't exist' jointly written by the Life Insurance Association Singapore (LIA) and the Singapore Actuarial Society.
The concept of 'orphaned money' has been widely debated in life insurance and regulatory circles in Britain because of attempts by insurers to attribute part of the life fund to themselves, and it is encouraging to know that this is not a concern in Singapore.
The concern of participating policyholders, however, especially with bonus cuts and significant reductions in terminal bonuses, is: Are policyholders getting their fair share?
The question that MAS, LIA and Singapore Actuarial Society have not addressed is this: What safeguards and regulations are there to ensure that when a policy is terminated for any reason - that is, death, maturity or voluntary termination by the policyholder - the payout to the policyholder (penalties for very early termination aside) is fair and a true representation of his policy's share in the total par fund?
We do not have an assurance of this; insurers appear to have too wide a discretion in determining the termination or maturity payout to the point that any payout beyond the guaranteed amount is almost arbitrary. It is in this area that the regulations are lacking and it is this issue that needs to be addressed.
Stanley Jeremiah
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[Watchman]

Well done ... we need more of these .

 

[halsey02]

Well done ... we need more of these .

Stanley Jeremiah...a JEW? or another 'dark colored' type?...well!, the insurance companies are never "UNTRANSPARENT"....businesses in SIN-gapore will milk the most from the consumers, the consumers have an non-existence rights ( CASE is a paper tiger)...they just copy the leader....

 

[makapaaa]

<TABLE border=0 cellSpacing=0 cellPadding=0 width="100%"><TBODY><TR class=msghead><TD><TABLE border=0 cellSpacing=0 cellPadding=0><TBODY><TR class=msghead><TD class=msgF width="1%" noWrap align=right>From: </TD><TD class=msgFname width="68%" noWrap>The 21-Gun Salute KNLBCCBPKLJHKCTNMKSFL (Abal0ne) <NOBR></NOBR> </TD><TD class=msgDate width="30%" noWrap align=right>1:39 am </TD></TR><TR class=msghead><TD class=msgT height=20 width="1%" noWrap align=right>To: </TD><TD class=msgTname width="68%" noWrap>makapa <NOBR></NOBR>unread</TD><TD class=msgNum noWrap align=right> (5 of 6) </TD></TR></TBODY></TABLE></TD></TR><TR><TD class=msgleft rowSpan=4 width="1%"> </TD><TD class=wintiny noWrap align=right>20028.5 in reply to 20028.1 </TD></TR><TR><TD height=8></TD></TR><TR><TD class=msgtxt>http://www.askdrmoney.com/About_Us.htm

Larry Haverkamp writes the Ask Dr Money web site.

He is a financial columnist. Since May 2001, Larry has written the "Ask Doctor Money" column which appears in The New Paper each Monday. He has written in The Straits Times, Business Times and various magazines.

He is adjunct professor of economics at Singapore Management University and serves on the Central Committee of the Consumer Association of Singapore (Case).

Larry earned his MBA degree in Finance from the University of Chicago and his PhD degree in Economics from the Wharton School at the University of Pennsylvania.

He has spent more than 20 years teaching at various US Universities including Golden Gate University, the University of California at Berkeley and Northwestern University.

Larry has lived in Singapore since 1990 and is married to Ms Linda Heng. They have two rambunctious daughters.
</TD></TR><TR><TD> </TD></TR></TBODY></TABLE><TABLE border=0 cellSpacing=0 cellPadding=0 width="100%"><TBODY><TR><TD class=msgleft width="1%"> </TD><TD class=msgopt width="24%" noWrap> Options</TD><TD class=msgrde width="50%" noWrap align=middle> Reply</TD><TD class=wintiny width="25%" noWrap align=right> </TD></TR><TR><TD class=msgbfrbot> </TD><TD colSpan=3> </TD></TR></TBODY></TABLE>