Charges

  • 198x - NAIC LIBG - ACLI = Scribe, vs 199x NAIC LIBG - Cude, Kite, Regulators = Scribes
  • Legal Cases 

Universal Life Model Regulation (MDL-585) - p4

  • The benefit charges shall include the charges made for mortality and any charges made for riders or supplementary benefits for which premiums are not paid separately.
  • The administrative expense charges shall include charges per premium payment, charges per dollar of premium paid, periodic charges per thousand dollars of insurance, periodic per policy charges, and any other charges permitted by the policy to be imposed without regard to the policyowner’s request for services.
  • The initial acquisition expense charges shall be the excess of the expense charges, other than service charges, actually made in the first policy year over the averaged administrative expense charges for that
    year.

    • Additional acquisition expense charges shall be the excess of the expense charges, other than service charges, actually made in an insurance-increase year over the averaged administrative expense charges for that year. An insurance-increase year shall be the year beginning on the date of increase in the amount of insurance by policyowner request (or by the terms of the policy).
  • Service charges shall include charges permitted by the policy to be imposed as the result of a policyowner’s request for a service by the insurer (such as the furnishing of future benefit illustrations) or of special transactions.

The charges which are characteristic of a universal life contract are ...

  • Premium Loads are assessed on premiums paid to cover state premium tax, DAC tax and sales related expenses. They are expressed as a percent of premiums and are deducted from premiums upon receipt.
  • Monthly Loads can be on a per policy and a per unit basis. They are deducted from the daily interest account or the equity indexed bucket(s) on monthiversaries.
  • Cost of Insurance charges are deducted from the daily interest account or the equity indexed bucket(s) on monthiversaries.

2008 0910 - Initial Comments on Release Nos. 33-8933 & 34-58022 (File No. S7-14-08): Proposed Rule 151A, American Academy of Actuaries