‘Quick fix’ concept for IUL illustrations advanced, with some dissent

November 15, 2022 by John Hilton

A state insurance regulator subgroup came up with a “quick fix” Wednesday to address faulty illustration problems within the Actuarial Guideline 49-A.

Sort of.

Members of the Indexed Universal Life Illustration subgroup ended a conference call with a nonbinding “straw poll” vote that favored a fix put forth by Securian Financial and Penn Mutual Life Insurance Co. 

Click HERE to read the full story via INN

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The coalition proposal grew out of comment letters authored by Sheryl Moore of Moore Market Intelligence and Bobby Samuelson of The Life Product Review. It now encompasses 12 “independent insurance professionals,” Samuelson told the subgroup.

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Wink’s Note: Gamesmanship on indexed life illustrations.
That is what we are working to end.
“We’re really puzzled why you would even consider a proposal to fix this problem from the companies that are causing the problem … it’s like asking a bank robber to design a system to stop them from robbing the bank again,” Birny Birnbaum said at our last National Association of Insurance Commissioners (NAIC) IUL subgroup call, regarding AG49/AG49-A.
He also noted, “”The coalition proposal presents no threat to indexed UL sales and will serve to further consumer understanding.”
And yet, the decision was not made to go with our coalition proposal. We shall see what lies ahead.
My thanks to John Hilton of InsuranceNewsNet for the excellent read. -sjm

Originally Posted at InsuranceNewsNet on November 10, 2022 by John Hilton.