The National Association of Insurance Commissioners (NAIC) is continuing to offer a quarantine-friendly alternative to wrestling and football, for people who miss wrestling and football: a fight over proposed changes to indexed universal life (IUL) insurance illustration standards.
Members of the NAIC’s Life Insurance and Annuities Committee have voted unanimously to approve a proposed update to Actuarial Guideline 49, which sets the rules for showing how an IUL policy might work in the future.
Members of the full NAIC could vote on final approval for the proposal as early as Aug. 11, during one of the web sessions that’s part of the NAIC’s summer national meeting.
But the proposal continues to face emotional opposition from some of the best-known U.S. life insurance distribution specialists, including many people who have been quoted in articles on ThinkAdvisor and in related publications for years, and who have had many articles of their own published by ThinkAdvisor and related advisors.
- Links to Life Insurance and Annuities Committee documents, including the July 10 materials packet, are available here.
- An article about life insurance sales is available here.
The list of bitter opponents of the proposed AG 49 includes Birny Birnbaum, of the Centers for Economic Justice.
The opponents list also includes Larry Rybka, the chief executive officer of Valmark Financial Group; Mike Brohawn, president of Your Life Insurance Solution; Stephen Leimberg, publisher of Leimberg Information Services Inc.; Ben Baldwin Jr.; and Joseph Belth, a professor emeritus at Indiana University.
An IUL policy is a life insurance policy with returns tied to the performance of a designated investment indicators, or set of indicators, such as the S&P 500 stock index.
Wink Inc. says insurers generated about $527 million from the sale of IUL and indexed whole life in the first quarter.
An illustration is a document that shows how a product might perform in the future, in specified conditions.
The NAIC tried to address concerns about lack of realism in IUL illustrations in 2015, when it approved AG 49.
Some IUL supporters worried AG 49 would be so strict that it would hurt IUL sales.