Get your inforce ledgers

[scagnt83]

That's at the current mortality schedule/charges, right? Can't happen. Very unfortunate how this was sold and then managed (not managed actually).

No, it can't be a positive return.

Correct, that is at current charges. So not even a worst case scenario.

Some of these IULs have insane guaranteed charges on them. Often the ones who are most competitive on illustrations.

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Question for you:
Do the guaranteed charges impact the reserve requirements of the block of biz?

It seems the ability to charge more would allow them to put less in reserves, since they can make up for it with increased expenses. And less in reserves means they are able to put more into options and illustrate at a higher Cash Value.

 

[Lloyds of Lubbock]

Are you sure this reg applies to inforce business, non of the regs before this did.

 

[Lloyds of Lubbock]

Should have read SCagt post...it does not apply to inforce.

 

[scagnt83]

Should have read SCagt post...it does not apply to inforce.

This applies to in-force illustrations.

It has no impact on actual policy mechanics for new or existing biz.

 

[Lloyds of Lubbock]

I just spoke with an actuary and was told it does not impact inforce business

This came from your link
What products are impacted? All currently marketed indexed universal life (IUL) insurance products available for sale as of May 1, 2023, will be impacted by this change.
To me this does not mean inforce.
Have you been told otherwise?
Nothing stops a company implementing this on inforce illustrations.
The adjustment to the admin system would be costly and most companies would rather undergo this expense unless forced to.

 

[Allen Trent]

Are you sure this reg applies to inforce business, non of the regs before this did.

the 1st few versions of AG 49 did actually impact inforce illustrations. These changes to hypothetical illustrations have impacted both new business sales illustrations & inforce illustrations even though these changes have not impacted the actual mechanics of the underlying product.....just the gamesmanship of the future predicting hypothetical future results, not the actual results

 

[scagnt83]

I just spoke with an actuary and was told it does not impact inforce business

This came from your link
What products are impacted? All currently marketed indexed universal life (IUL) insurance products available for sale as of May 1, 2023, will be impacted by this change.
To me this does not mean inforce.
Have you been told otherwise?
Nothing stops a company implementing this on inforce illustrations.
The adjustment to the admin system would be costly and most companies would rather undergo this expense unless forced to.

AG49A impacted inforce illustrations.

Why would AG49B not impact them?

 

[Lloyds of Lubbock]

I did not say it shouldn't.
I am going by what I read on your link.
The first bullet point says business impacted.
It is all business going forward, it mentions nothing about inforce.
My opinion (not necessarily correct) is that inforce may not be impacted.
I have only sold one of these and I am going to contact the carrier for a clarification.
I will post it when I receive a response

 

[Lloyds of Lubbock]

This came today from John Hancock

 

[PrivClientSG]

Don't collapse the new regulation and how it impacts illustrations...vs...how a policy actually works, performs, etc. Two separate and distinct topics. Apples and bowling balls! LOL.