Draft 4/11/88
RE: Proposed Regulations Concerning the Valuation of Universal Life Insurance Plans

  • The regulation provides for the pre-funding of cash values, so that the amounts will be available upon policyholder demand, and will not be contingent upon sufficient surplus being available at that time to cover what is the equivalent to a demand deposit.  (p434)

1988-2, NAIC Proceedings

Demand Deposits
Demand deposits are funds on deposit with banks; they are subject to immediate withdrawal and are classified as cash.

Savings Deposits
These are interest-earning accounts in which the depositor is required (or may at any time be required) by the bank to give notice in writing not less than 30 clays before a withdrawal is to be made.

  • Banking regulations provide that banks may waive the requirement of notice if the waiver applies to all depositors having the same provision of notice.
  • The general banking practice today is to waive this 30 day notice, with balances withdrawable at any time during banking hours.
  • Interest usually is earned from date of deposit to date of withdrawal and is credited periodically to the account.  (p22)

1988-2, NAIC