Insurance industry pushes ‘quick fix’ for IUL illustration issues
September 20, 2022 by John Hilton
For example, some IUL fixed interest bonuses can generate illustrated income more than 60% higher than a Benchmark Index Account [such as the S&P 500], wrote Sheryl Moore and Bobby Samuelson, who are competing product intelligence analysts. The pair co-authored a pair of comment letters.
“This is, in our view, entirely inconsistent with the intent of regulators in crafting AG 49-A,” their initial letter reads. “The gamesmanship currently occurring in illustrations is similar in effect and pervasiveness to the buy-up caps and multipliers that proliferated after AG 49 and resulted in AG 49-A.”