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Old 10-10-2018, 06:50 PM
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Default Manulife guaranteed rate lawsuit

Didn't see a thread on this. Manulife issued policies with a guaranteed 4% return option. A hedge fund owns such a policy and wants to put billions of dollars into the policy to earn the 4%.

Muddy Waters, a shorting hedge fund, placed a large short on Manulife after the trial ended, thinking they will lose, and have a hard time paying out 4%. No verdict yet from the trial.

Blame the lawyers, or, blame the actuaries?
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Old 10-10-2018, 07:44 PM
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I have always recommended contractual premium limits on flexible premium plans for my employers/clients - for this very reason (as well as for death benefit corridors).

But it is amazing how many contracts don't have them. Somebody internal is to blame (may or may not be the actuaries or the lawyers). (Assuming they didn't have that provision)
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Old 10-12-2018, 09:25 AM
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Why not both?
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