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From The Desk of Michael Cohen: New Reserving Rules To Affect Product Pricing - Please Keep Track Of The Transition Rules
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'We wanted to highlight some changes in the industry that will affect Life Insurance product pricing or product offerings.You will see changes in company product portfolios and some of these changes may be sudden.
By 1/1/2020, the insurance companies have to change their products to be compliant with 2 reserving rules that will change product:
- The 2017 Commissioners Standard Ordinary (CSO) Table – a new mortality table used in product pricing
- Principle-Based Reserving (PBR) – a new way of calculating reserves to pay future claims
While some products have already been repriced, some of the products have not. Given the nature of these new reserving rules, we are anticipating pricing changes in many of the products or complete elimination of others. The Principal article below does a nice job of summarizing the changes.
Thank you for your continued business and support of our collaborative mission of “Protecting spouses, children, and individuals from the financial effects of life’s tragedies”℠ .'
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From Principal: 2017 CSO Changes & Principal-Based Reserving
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From Protective: Classic Choice Term Reprice Premiums Will Increase & Decrease
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"We’re excited to announce Protective Classic Choice Term will be repriced on August 12, 2019. Now, you can offer Protective’s dependable term coverage — with the speed and efficiency of PLUS — at an even lower price.
Beginning August 12th, Protective Classic Choice Term will be even more competitive with an average 1% premium decrease. And no matter which way you quote Classic Choice Term — in monthly or annual pay scenarios — Protective lands on top with our market-leading rates:
- Top three — or better — 89% of the time in annual pay scenarios.
- Top three — or better — 93% of the time in monthly pay scenarios.
- Now, you can offer Protective’s dependable term coverage — with competitive monthly and annual rates — at an even lower price. And your clients can receive their coverage even faster, all thanks to our Protective Life Underwriting Solution (PLUS).
- Premiums will both increases and decrease
Transition Rules
- For ticket business and direct writers (not including NY): applications must be signed and received on or before Monday, September 9 to receive current rates.
- For paper business: applications must be signed and received on or before Monday, August 26 to receive current rates.
- Any application in underwriting on August 12 may choose between the old and new version of the product."
Read Bulletin >>
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Reminder: Non-Participating Whole Life Update
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"In order to comply with requirements set forth by the National Association of Insurance Commissioners (NAIC), we are introducing a new version of our Protective Non-Par Whole Life (NPWL 2013) insurance product.
Effective July 12th, the current NPWL 2013 will no longer be available. The rates for the new version of the product will reflect the updated 2017 CSO Mortality Table (2017 CSO) and Principle Based Reserves (PBR) requirements adopted by the NAIC.
Transition Rules
The following transition rules apply to all states, except the state of New York. The current NPWL 2013 version of the product will still be available in the state of New York.
- New rates are available as of July 12, 2019.
- Applications must be signed and received in the Protective Home Office by August 9, 2019 to receive the NPWL 2013.
- Applications received on or after August 10, 2019 will receive the new product rates.
- Exceptions will not be allowed."
Read Bulletin >>
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PLUS Accelerates the “Less-Than-Perfect” Applications, Too
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"Available with Protective Classic Choice Term and Protective Custom ChoiceSM UL, the Protective Life Underwriting Solution (PLUS) provides clients with the opportunity to qualify for accelerated underwriting. Most think that the client needs to be in “perfect” health to qualify for accelerated underwriting. Our PLUS program is different."
Learn More >>
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From Assurity: New Whole Life Insurance
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"Starting August 1st, the new Assurity Whole Life Insurance will be available in all states, except CA and NY.
At that time, LifeScape Whole Life will be discontinued in all states, except CA and NY. Applications for LifeScape Whole Life will be accepted if signed, dated and returned to Assurity by August 31, 2019.
The illustration and E-app systems will be available on August 1st. Desktop illustration users will be prompted to update upon entering the Life Portraits software. Please visit the Product Center of AssureLINK for more information, including product information and marketing materials."
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Reminder From Lincoln Financial: MoneyGuard II Enhanced Underwriting
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"Effective immediately – for a limited time only – Lincoln is pleased to announce expanded underwriting consideration for Lincoln MoneyGuard® II applications submitted and received at Lincoln by November 1, 2019 and placed with premium by December 31, 2019."
View Bulletin >>
View 2019 Transition and Placement Guidelines For Lincoln Products >>
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Reminder From North American: New ADDvantage Term Rates!
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- Competitive premiums and commissions
- Accelerated death benefit endorsement for critical, chronic, and terminal illnesses included at no extra cost subject to eligibility requirements1
- Fully Convertible – Clients can convert their term insurance to permanent universal life coverage without underwriting2
- Offers 10, 15, 20 and 30-year level premium guarantee periods, depending on issue age3
- WriteAway® Accelerated Underwriting available4
- Increased retention limit to $2,500,000 (applicable for ages up to 75).
- Increased automatic binding limit to $50,000,000 through age 70 and $25,000,000 through age 75.
- Increased jumbo limit to $65,000,000 (applicable for ages up to 75).
Transition Rules
- Electronic Applications
- As of August 3, 2019, ADDvantage Term Gen. 8 will no longer be available in SimpleSubmit® e-app.
- Electronic applications for ADDvantage Term Gen. 8 must be signed and submitted by August 2, 2019.
- Paper Applications
- To receive ADDvantage Term Gen. 8, the application must clearly indicate ADDvantage Term Gen. 8, signed by August 2, 2019, AND received by August 9, 2019.
- Paper applications received June 24, 2019 and after, that do not specify which series is wanted, will automatically receive ADDvantage Term Gen. 9.
- All applications received August 10, 2019 and after will automatically receive ADDvantage Term Gen. 9, regardless of what is requested on the application."
View Full Bulletin >>
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Reminder: Updated & Enhanced Underwriting Guidelines
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"North American Company is happy to announce several changes to the underwriting guidelines to enhance the experience of the applicant during the underwriting process. These changes will be effective July 26, 2019."
Download Bulletin >>
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From Mutual of Omaha: Important Updates
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Reminder From Brighthouse:
Product Portfolio Update Effective September 27, 2019
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"Effective September 27, 2019, Brighthouse Financial® will close the following products to new sales:
- Brighthouse Premier Accumulator Universal Life (PAUL)
- Brighthouse Guaranteed Level Term (GLT)
Why are we closing these products?
With the adoption of the 2017 Commissioners Standard and Ordinary (CSO) Mortality Table and the regulatory requirement that any product available for sale beginning January 1, 2020, to comply with the 2017 CSO Table, insurance companies are updating or closing older products. In evaluating our life product portfolio, we have opted to close rather than update these particular products.
Key transition dates for sunsetting products:
August 27, 2019
- Last day to submit Quick Quotes and Preliminary Applications
September 27, 2019
- Paper applications must be received in good order
- Tele-applications must be completed
- The last day GLT and PAUL illustrations will be available
November 27, 2019
- Pending cases must be paid and issued
Brighthouse Financial Life Insurance Product Portfolio
The following Brighthouse Financial products will continue to be available:1
- Brighthouse SmartCare® Indexed Universal Life
- Brighthouse Conversion Whole Life
- Brighthouse One Year Term
1 All products may not be available in all jurisdictions or firms. State variations may apply."
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From Eugene Cohen Insurance Agency, Inc.:
IL Brokers: On-site CE Ethics Training Course
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CE ETHICS COURSE
THURS, AUG 1st | 9 AM - 12 PM
While the class is provided as a courtesy, the CE Provider, PTS (Professional Training Services, Inc.), does require a check for the IL State Filing Fee of $18.00.
Register Now >>
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