The NAIC and FTC Policy Summary Deadlock: A Possible Compromise.

The article analyzes the relationship between rates of return calculated using the Linton yield method and interest-adjusted surrender costs by examining this relationship for a variety of different face amounts and issue ages. It is based on Harold G. Ingraham Jr.'s study "An Analysis of Two Cost Comparison Methods—Interest Adjusted Cost vs. Linton Yield." The findings show that, at least with regard to continuous premium whole life products, policies are ranked very similarly, if not identically, by either the 20 year Linton yield method or the 20 year interest-adjusted cost method. In addition, the results offer a potential compromise solution to the industry-Federal Trade Commission debate over the appropriate cost disclosure indexes for inclusion in the policy summary provided to prospective purchasers of life insurance.