State regulator group previews possible ‘quick fix’ to IUL illustration issue

October 17, 2022 by John Hilton

For now, the group is accepting comments for three weeks on the following three concepts to fix AG 49-A:

• Bobby Samuelson noted that his proposal actually encompasses the thoughts expressed by several letter writers. Samuelson authored a pair of letters with fellow product intelligence analyst Sheryl Moore. They favor removing the lookback option from calculations. Their letter focused on three ways to accomplish this:

1. Use the Hedge Budget, which is already an element of AG 49-A, for each indexed account.
2. Use a Black-Scholes fair-market value of the currently offered index participation in each indexed account.
3. Use the offered Fixed Account rate as the maximum illustrated rate for all indexed accounts.

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Originally Posted at InsuranceNewsNet on October 13, 2022 by John Hilton.