Regulators Close In On IUL Illustration Compromise
February 5, 2020 by John Hilton
Regulators and industry representatives came closer to agreement on a middle ground to save the controversial multipliers and bonuses that many blame for rosy indexed universal life illustrations.
A National Association of Insurance Commissioners’ subgroup is still working through the details, but regulators seemed receptive to industry proposals that would limit maximum illustration rates to the 6% range.
A group of industry representatives presented a pair of options this week that would, theoretically, keep illustrations with and without bonuses and/or multipliers all in the same neighborhood.