Cash Surrender Values

My topic this morning is required cash surrender values for Universal Life products. 

A few of the questions I will address include:

  • What is the status of NAIC activity in this area?
  • What are the prospects of the NAIC adopting the current ACLI nonforfeiture proposal?
  • As I personally do not believe that a verbatim adoption of the ACLI proposal is very likely, what objections may be addressed by the NAIC?

In order to resolve these objections, I will propose a new definition of what constitutes an equitable cash surrender value for insurance issued through a stock company.


1983Universal Life, Society of Actuaries