Regulatory Commentary
#389 | VUL & The Tax Cost Ratio
Full Article Life insurance is often – and often problematically – characterized as being “tax free.” That isn’t strictly true. The cash value itself is taxable upon sale. That’s consistent with other financial instruments. If you own a stock that…
#387 | Threading the Needle on 7702
This post was authored by Steve Cox at Life Innovators. In #357, “The Multi-Verse of 7702 Rates” (April 2023), we walked through the complicated steps required to sort out projected 7702 rates over the next couple of years. In the…
#357 | The Multi-Verse of 7702 Rates
This article was written by Steve Cox, FSA, MAAA, who is the Head of Life Insurance at Life Innovators. Earlier this year, I wrote an article talking about the impact of rising interest rates on Section 7702. The main takeaway…
AG 49-B Article – Aspire Magazine
I wrote this article for Aspire Magazine, but I thought I would reprint it here on The Life Product Review because it’s a concise description of the history of Indexed UL illustration regulation and the forthcoming revisions to AG 49-A,…
#342 | AG 49-B & The Next Phase of IUL
Quick Take AG 49-B is likely to be adopted in the next couple of weeks and implemented in March of 2023. The immediate effect will be dramatic - some accounts will see reductions in illustrated income as large as 50%.…
#329 | AG 49-B Takes a Leap Forward
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#311 | The Shifting Winds of AG 49-A
For the third time, the IUL Illustration Subgroup of the Life Actuarial Task Force (LATF) of the A Committee of the NAIC – yes, that’s really how the hierarchy goes – will take up the question of what to do…
#300 | Get Ready for AG 49-B
At the NAIC Life Actuarial Task Force (LATF) virtual meeting in early December, Fred Andersen (MN), the chair of the IUL Illustration Subgroup, read a prepared statement asking for comments on a particular nuance related to AG 49-A and the…
#285 | The Lesson of the Cares Act
To quote the great Yogi Berra, “in theory, there is no difference between practice and theory. In practice, there is.” That’s certainly the case with the Washington Cares Act, a well-intentioned law designed to provide a backstop for the growing…
#263 | 7702 Update – Symetra Moves First
Nearly 2 months after the fact, we finally have our first retail product illustrations that reflect the new 7702-2% (as opposed to the old, 7702-4%) rates. The results are in-line with what I wrote about in previous articles, but I…
