#46 | GUL – Still Not What You Think

My presentations on Guaranteed UL have a relatively happy ending. Yes, pre-2013 GUL policies were often riddled with provisions that created risks largely undisclosed or inadequately disclosed to policyholders. Yes, most of those provisions were created to exploit loopholes in AG 38 and allowed insurers to hold smaller reserves. Yes, those risks have blown up, are blowing up and will continue to blow up without careful administration. But yes, the loophole was closed last year and so GUL products written post 1/1/2013 aren’t as risky as the outgoing versions. I framed the problem as primarily dealing with the old block rather than with new sales.