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Illustrations: Illustrations are a "term of art" in the life insurance industry and refer to illustrations or ledger tables of hypothetical policy values typically including columns for Premiums, Account Values, Cash Values and Death Benefits usually calculated based on non-guaranteed pricing assumptions as to Cost of Insurance (COI) Charges for death claims, Policy Expenses as to Premium Loads, Fixed Administration Expenses, and Cash-Value-Based "Wrap Fees", and policy interest/investment earnings assumptions.
In-House Retention: In-House Retention is the amount of life insurance which a primary insurer can issue "on their own paper" without the need for any reinsurance. While many insurers of all sizes can use reinsurance from the first dollar of a risk, In-House Retention is a barometer of a primary insurer’s ability to control pricing even if reinsurers fail and/or withdraw from the market.
Institutional pricing: Policies identified as "Institutional" are designed to include volume discounts and economies of scale available to large individual transactions and/or large groups of policies. As such, "Institutional" policies are characterized by high minimum policy face amounts and/or high minimum premium requirements, and offer low and/or levelized Premium Loads, and/or low Cash-Value-Based "wrap fees", and/or low or no Termination Fees (i.e., Surrender Charges), and/or low Fixed Administration Expenses, and/or low Cost of Insurance (COI) Charges. Depending upon the administrative requirements and/or underwriting concessions (e.g., Guaranteed Standard Issure or GSI arrangement in corporate benefits settings) for a given policy/group of policies, "Institutional" policies can include higher Fixed Administration Expenses, and/or higher Cost of Insurance (COI) Charges than "Retail" policies, so long as the total overall cost remains less than "Retail" policies.
Insurance Banking™: The practice of assembling and managing portfolios of insurance, typically with policies of larger than average face amounts, often in excess of a single insurer’s retention limits. The ability to provide high quality Insurance Banking™ services depends upon negotiating and placing large blocks of insurance and requires lead underwriting experience and established relationships with many insurers.