Yield Index

3. Make Recommendations on Optional Form of the Life Insurance Disclosure Model Regulation with Yield Index

Mr. Foley explained that the concept of a yield index was very popular in the 1970s and early 1980s.

  • At that time the NAIC adopted a model regulation with an Optional Form of the Life Insurance Disclosure Model Regulation with Yield Index.
  • California was the only state that adopted the Yield Index and Mr. Summers noted that it has since been repealed.
  • Mr. Foley noted that when the Life Insurance Disclosure Model Regulation was revised at the Summer National Meeting all references to indices were deleted.
  • Mr. Batte moved, and Mr. Hartnedy seconded a motion to delete the Optional Form of Life Insurance Disclosure Model Regulation with Yield Index from the list of official NAIC model laws. The motion passed.

2000-3, NAIC Proceedings

  • 1984-2, NAIC Proceedings
    • 2. Adopted charges of advisory committee which include development of yield index (first priority) and study of test limits in the NAIC Model Life Insurance Disclosure Regulation.

  • 1988-1, NAIC Proceedings
    • Project No. 7a "Disclosure of Interest Yield Index:• Questions had previously been raised as to whether the product rankings would be similar under the interest-adjusted index and the yield index for interest sensitive life insurance products, such as universal life plans.
  • 1991-2A, NAIC Proceedings
    • 5. Ratification of Amendments to the Optional Form of the Life Insurance Disclosure Model Regulation with Yield Index. Mr. Strauss explained that when the Life Insurance Disclosure Mode] Regulation amendments were adopted in December 1990, identical amendments should have been made to the Optional Form of the Life Insurance Disclosure Model Regulation With Yield Index. Upon motion duly made and seconded, the committee directed that the December 1990 amendments be made to the Optional Form of the Disclosure Regulation and directed that any future amendments to either model regulation be automatically made in the other model regulation unless there was specific wording to the contrary (Attachment Five-A)
  • 2000-3, NAIC Proceedings
    • Mr. Batte moved, and Mr. Hartnedy seconded a motion to delete the Optional Form of Life Insurance Disclosure Model Regulation with Yield Index from the list of official NAIC model laws. The motion passed.