A Revised AG 49 Could Help Clients Better Understand IUL
July 6, 2019 by John Hutchinson
Since the National Association of Insurance Commissioners adopted Actuarial Guideline 49 in 2015, the way indexed universal life is sold has changed drastically, but not necessarily for the better. The original regulations are being reexamined, so the future of IUL hangs in the balance once again.
Don’t get me wrong, I do believe that setting uniform illustration standards to curtail misleading sales practices is necessary. However, AG 49 was really born from dueling opinions between insurance companies that believed in IUL and those that were staunchly against it. The original regulations were merely an exhausted compromise after rounds of saber-rattling and laborious deliberations.
Although AG 49 clearly states that its purpose is to “aid in client understanding,” I believe that the first wave of regulations actually hurt client understanding more it than helped. As a practicing agent who takes an educational approach with clients, I can tell you first hand that explaining the true essence of how IUL works is much more difficult now than it was before. You see, during the heat of the AG 49 battle, some of the key educational reports inside older IUL illustrations ended up as casualties on the cutting-room floor.
Click HERE to read the full story via INN Magazine.
