ACLI - Groups

  • A couple of ACLI groups have also been studying various aspects of universal life insurance.
    • The Council's Subcommittee on Cost Comparisons has proposed that cost disclosure requirements for universal life plans be generally similar to those for traditional life insurance plans as provided by the NAIC Model Life Insurance Solicitation Regulation.
      • In addition, the Subcommittee is recommending disclosure for universal life plans in accordance with the "non-guaranteed cost element" concept endorsed by the Council as a modification to the model regulation.
      • The only special requirement recommended for universal life plans is that the Policy Summary indicate when the plan will terminate based on guaranteed assumptions. No post-sale disclosure requirements were deemed appropriate at this time.
    • The Council's Indeterminate Premium Task Force at the request of the NAIC (C4) Technical Subcommittee...
    • ...
    • The ACLI also has a study group that they have just started recently to look at, 818(c), and see what amendments, if any, would be needed in order to specifically provide that universal life receives some form of approximate net level deduction.

--  Leonard Odell, ACLI

1981 - SOA - Universal Life (RSA81V7N412), Society of Actuaries - 16p

  • Another area I would like to discuss is the ACLI tax package.
    • Questions have been raised under the ACLI package as to what tax, if any, a universal life product should pay.
    • The ACLI also has a study group that they have just started recently to look at, 818(c), and see what amendments, if any, would be needed in order to specifically provide that universal life receives some form of approximate net level deduction.

--  William B. Harman, Jr., not a member of the Society, is a partner in Sutherland, Asbill & Brennan

1981 - SOA - Universal Life (RSA81V7N412), Moderator: Samuel H. Turner, Ben H. Mitchell, Society of Actuaries - 16p