Life insurance illustration rules on the clock as full rework looms
April 4, 2023 by John Hilton
Updated guidance for indexed universal life illustrations takes effect May 1, but a major overhaul of life insurance illustration regulation is coming, a Symetra executive said Monday.
But it won’t be too long before the National Association of Insurance Commissioners reopens the overall life insurance illustration regulation, added Gregory Rohtstein, assistant vice president, life product management at Symetra.
Both the short- and long-term illustration rule efforts are big variables when it comes to sales.
Click HERE to read the full story via INN
Wink’s Moore on the Market: AG49-B takes effect May 1, 2023.
NOTE-
“AG 49-B states that no index account can be illustrated above the benchmark index account and the new maximum illustrated rate must be inclusive of any bonuses.”
EXAMPLE-
“If your maximum illustrated rate is six [percent], and you have a bonus of 1%, you’re technically effectively illustrating seven,” he explained. “What [AG 49-B is] saying is you can’t add that additional bonus to the 6%. You either have to lower your maximum illustrated rate to five and then you can illustrate up to that six, or you don’t offer a bonus.”
Big shout out to my good friend Gregory Rohtstein at Symetra for his on-point commentary on this one!
I have to thank my buddy Scott Barnes, CFP®, CLTC for the tipoff on this piece from InsuranceNewsNet. YTB!
Closing thought: Product development and marketing will always remain a step ahead of the National Association of Insurance Commissioners (NAIC). The next frontier IMHO? Carriers switching from portfolio rates to new money.
Mark me.
Let the re-opening of The Illustration Model Regulation commence! – sjm
