Actuarial Guideline 49-A (AG 49-A) Updates from Securian
We welcomed Actuarial Guideline 49 (AG49) and uniformity for indexed universal life (IUL) illustration practices. Now with enhancements to this guideline, AG 49-A once again levels the playing field – so IUL products with multipliers, cap buy-ups and other enhancements cannot illustrate significantly better than traditional IUL products.
To learn how Securian Financial’s IUL products are positioned for success, view our AG 49-A FAQ and additional resources at securian.com/AG49. Please also keep in mind the important dates listed below as you place IUL cases over the next two months.
Important 2020 dates
- Friday, November 20, 2020 — Illustrations based on the old AG49 guidelines will no longer be available after this date.
- Saturday, November 21, 2020 (noon, CST) — Updated, AG 49-A compliant illustrations available.
- Friday, December 11, 2020 (3 p.m., CST) — to place a case under the old AG49 guidelines, cases need to be UNDERWRITTEN, APPROVED, PAID and DELIVERED (delivery receipt signed) with a signed illustration run no later than November 20.
Cases that have not completed the above requirements by this time will require a new, signed AG 49-A compliant illustration.
- This is a regulatory requirement and NO EXCEPTIONS will be made.
- Nevada and Oregon only. AG 49-A compliant illustrations are pending state approval. Cases for these states need to be paid and delivered by 3 p.m., Friday, December 11, 2020, with a signed illustration run no later than November 20. Otherwise, products in those states will be unable to be issued until the updated illustrations are approved. Approval timing could vary by product.
Note: There may be situations in which you receive an illustration upon policy delivery containing old AG 49 guidelines. If this occurs, you will be asked to supply a new, signed AG 49-A compliant illustration. For more information and updates on this regulation and how it impacts your business with Securian Financial, visit securian.com/AG49.
Mutual of Omaha – Phase 2 LTC New Business Rate Refresh and Benefit Changes
Phase 2 of Mutual of Omaha’s rate refresh will be taking effect on November 1st in 5 states – Kansas, Maryland, Massachusetts, Pennsylvania and Wisconsin.
Please note the following important dates for both paper and eApplications:
• All applications must be signed by October 31st and received at Mutual of Omaha’s Home Office no later than November 13th to receive the old rates and benefits.
• Applications signed November 1st or later will receive the new rates and benefits and will require new applications completed on the new application version
• Older application versions received in Mutual of Omaha’s Home Office after November 13th will be closed and will require new applications completed on the new application version to be processed
• Applications for the new rates will be made available on November 1st on Sales Professional Access (SPA).
• Backdating of applications is not allowed and will not be accepted
There will be no exceptions to the rules as outlined above and in the formal communication.
The original announcement can be found HERE.
New Term Rates from LGA Effective October 10, 2020
What’s Changed: New rates include a mix of increases and decreases, with a focus on earning the top competitive position in the Preferred and Standard Non-tobacco classes and improving competitive position in the Preferred Plus class. Rate changes were primarily focused on the 10 to 30-year level term periods with no change to 35 and 40-year options.
More information available HERE.
Genworth LTC Inforce Rate Action: Privileged Choice and Classic Select in PA
See notice from Genworth for additional information.
Lincoln MoneyGuard Pricing Update
Given the industry’s historically low interest rate environment, Lincoln is making prudent and responsible pricing adjustments.
Effective June 15, 2020, Lincoln Financial will implement pricing increases to all products in the Lincoln MoneyGuard solutions suite. Adjustments on flex-pay designs will see a pricing increase of approximately 15%. Single-pay designs will see a pricing increase of approximately 20%.
Additionally, Return of Premium (ROP) on Lincoln MoneyGuard® II in California is being updated to bring consistency across the MoneyGuard product suite. The Basic ROP option will be 70%. The Vested ROP option will begin at 70% and grade up to 100% over six years.
It is important to note that no changes will be made to the contract language, forms, compensation or benefits provided.
For applications to qualify for the current pricing, a projection of values and the completed application Part 1 must be signed, dates and received in good order by Lincoln’s home office by Friday, June 26, 2020.
All pending business must be issued, or 1035 exchanges initiated (where applicable), on or before August 28, 2020.
Additional information is available HERE.
PruLife® UL Protector Is Being Repriced
Effective April 27, 2020, PruLife Universal Protector will be repriced in response to the current interest rate environment. The new rates will result in an average increase of 8% to 12% in all states (except New York) depending on age, underwriting class, and premium funding patterns. However, Prudential remains committed to the GUL marketplace and we strive to provide the best value possible for our customers.
In New York, the average increase in premium is approximately 20%, which is due to the interest rate environment and reserve requirements specific to New York. Several competitors also charge higher premiums in New York or have restricted products available for sale. Please note the new pricing release in New York is pending state approval.
North American Annuity Changes
Please read this announcement about rate and cap changes effective today.
Goodbye Stretch IRA, Hello Life Insurance Opportunities
HERE is an excellent sales idea from Prudential, emanating from the SECURE Act.
Introducing eApp for Lincoln MoneyGuard® Solutions
As a leader in the market, Lincoln has a long-standing commitment of helping protect client wealth from the risk of long-term care expenses, while improving the overall financial professional and client experiences. To offer you greater control of your Lincoln MoneyGuard Solutions experience — while continuing to reduce overall turnaround times — the Lincoln MoneyGuard® III application Part I will be accessible on the iPipeline iGO® platform or through your Lincoln producer website. This process will provide an added convenience and enable a more streamlined, customized experience.
More information on the process available HERE.
Mutual of Omaha LTC: Application and Procedural Changes
Effective February 23rd, all policies will be issued with an effective date that matches the date of issue; the date of application will no longer be an option. Furthermore, money will no longer be accepted with the application. Accordingly, temporary insurance and conditional receipts will no longer be available.
Updated application paperwork is now available as a result of these changes. If you are still using the old version of the application paperwork, it must be signed and received in the home office no later than February 29, 2020. If received in the Home Office after February 29, 2020, the application will not be accepted.
For additional information, please click here.