Two significant changes to the way carriers are required to price and reserve for life insurance products become effective Jan. 1, 2020.
For the remainder of 2019, carriers will be revising their products. Before we can understand what’s to come, dive into what is changing and what it means to you.
No date yet, still working with CA on compliance approval
AG Extend IUL
New version effective Dec. 9
AG Platinum Choice VUL 2; American Elite WL
A new Disclosure and Acknowledgement form will be included at the end of the illustration process.
This form will help ensure awareness of conditions for issuance of products using the 2001 CSO mortality tables.
Under transition guidelines, applications for 2001 CSO products must have an issue date of no later than Dec. 31, 2019.
Assurity’s life insurance products are compliant with Principle-Based Reserves (PBR) by meeting the conditions for the Life PBR Exemption
(sometimes referred to as the smaller company exemption).
This means that while Assurity will comply with the other sections of the Valuation Manual, we are exempt from following the PBR standards of section 20.
Products that are PBR & 2017 CSO compliant
All Assurity life products available for individual product distribution
(not distributed through worksite) should be available as compliant by Jan. 1, 2020.
The following newly-filed products are currently awaiting approval in the following states:
Assurity Whole Life – CA
Assurity Universal Life – IIPRC (“Compact”) states, CA, DE, FL, ND, SD
Products that will sunset by end of 2019
LifeScape Joint Whole Life
To be discontinued effective Oct. 15, 2019. Applications need be signed by Oct. 15 and received at Assurity by Oct. 31
Applications for existing products must be submitted, underwritten, issued and paid for sufficiently prior to Dec. 27.
The following dates are guidelines to help provide enough time to complete underwriting and process the policy, barring no unforeseen requirements.
Please seek clarification from your case manager on individual cases and any additional requirements.
Dec. 2, 2019: Underwriting requirements received
Dec. 13, 2019: Underwriting approval checkpoint
Dec. 27, 2019: Outstanding delivery requirements received
New 2020 Term launched Oct. 28, 2019. Applications for older product must be received by Dec 2, 2019.
See full transition guidelines.
Principal One-Year Term
New One-Year Term expected Nov. 1, 2019. Applications for older product must be received by Dec 2, 2019.
See full transition guidelines.
Principal Universal Life Protector IV
New UL Protector V expected Oct. 28, 2019. Applications WITH a 1035 exchange for older product must be received by Nov. 11, 2019. Applications WITHOUT a 1035 exchange for older product must be received by Dec. 2, 2019. Last day to receive all requirements and premium, and establish trust if trust-owned is Dec. 9, 2019.
Principal Survivorship Universal Life Protector II
New SUL Protector III expected mid-November 2019. Applications for older product must be received by Dec. 2, 2019. Applications WITH a 1035 exchange for older product must be received by Nov. 11, 2019. Applications WITHOUT a 1035 exchange for older product must be received by Dec. 2, 2019. Last day to receive all requirements and premium, and establish trust if trust-owned is Dec. 9, 2019.
VUL Income III
Applications WITH a 1035 exchange for older product must be received by Nov. 11, 2019. Applications WITHOUT a 1035 exchange for older product must be received by Dec. 2, 2019. Last day to receive all requirements and premium, and establish trust if trust-owned is Dec. 9, 2019. See details on the new VUL Income IV.
ULFIII NY
Application must be submitted to Principal by Nov. 1, 2019
Available for conversions only from SBLI Level Term policies or Level Term riders with an issue date on or after 8/1/2012.
Transition dates for non-compliant products
Flex Whole Life
New illustrations will be effective Nov. 14. Premium must be paid and processed by Dec. 27, 2019.
Conversion UL
New illustrations will be effective Nov. 14. Premium must be paid and processed by Dec. 27, 2019.
Products that will sunset by end of 2019
Conversion UL - California Only
Premium must be paid and processed by Dec. 27, 2019. For all submitted applications other than 1035s, SBLI suggests submitting them to the home office by November 1, 2019.
Products that are PBR & 2017 CSO compliant
Protector IUL
Term
Transition dates for non-compliant products
Accumulator IUL
New version available Oct. 31, 2019. Last day to issue existing product is Dec. 13, with product in-force by Dec. 31.
UL-G
New version available Oct. 31, 2019. Last day to issue existing product is Dec. 13, with product in-force by Dec. 31.
CAUL
New version available Oct. 31, 2019. Last day to issue existing product is Dec. 13, with product in-force by Dec. 31.
Although many pricing changes so far have been minimal, we will see a significant wave of product changes before the end of the year. Watch to learn:
What we know about the impact of the legislation
What to expect through the end of the year
When it makes sense to get policies completed in 2019
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