Term Universal Life Insurance

Guideline EEE was originally a separate reserving guideline, but it has now been incorporated into XXX.

  • It covers the problem of term like universal life policies. It was originally proposed when companies started guaranteeing that a universal life policy would remain in force regardless of what happens to the account value as long as specified premium payments are made.
  • In some circumstances the policy account value may drop to zero, but the policy remains in force.
  • This creates a secondary guarantee. In this instance the reserve is calculated as the greater of the regular and the secondary reserves.

1993  - VALUATION ACTUARY SYMPOSIUM PROCEEDINGS - SESSION 3 - Life and Annuity Valuation Issues

6. Adopted Amendment to the Charge of the Joint Working Group of the Life Insurance and Annuities (A) Committee and Financial Condition (E) Committee to Address Issues Surrounding Statutory Reserve Requirements for Insurers Offering Universal Life with Secondary Guarantee (ULSG) Products

  • Commissioner Voss reported the Joint Working Group of the Life Insurance and Annuities (A) Committee and Financial Condition (E) Committee was established at the 2011 Fall National Meeting to address issues regarding reserve requirements for ULSG products.
  • The Executive (EX) Committee now believes it is appropriate to add term universal life (UL) products as part of this project. Commissioner Hamm made a motion, seconded by Superintendent Torti, to adopt the amendment to the charge of the Joint Working Group of the Life Insurance and Annuities (A) Committee and Financial Condition (E) Committee to address issues surrounding statutory reserve requirements for insurers offering term UL products (Attachment One-F).
  • The motion passed.

2012-1, NAIC Proc.

Mr. Lotter will then talk about an overview of New York Regulation 147.

  • He will compare and contrast Regulation 147 with XXX.

Last, Ms. Marler will discuss the impact of both the model regulation and New York Regulation 147 on term and term UL products.

1995 - TERM INSURANCE: NEW YORK REGULATION 147 AND THE NAIC'S XXX