Regulators Ask for Advice About Indexed Universal Life Illustrations

The insured gets a crediting rate tied to the performance of one or more investment indexes.

The Controversy

Critics say that some insurers invent or use new indexes, with relatively short track records, and with performance illustrations that may present unrealistic ideas about how a given IUL policy will really perform.

The NAIC’s Life Insurance Illustration Issues Working Group has worked on the issue for several years.

Doug Ommen, the Iowa insurance commissioner, has suggested that the working group should disband, because states have shown little interest in the project.

(Image: Brian A Jackson/Shutterstock)