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The National Association of Insurance Commissioners (NAIC) and the American Council of Life Insurers (ACLI) worked together, along with ACLI member companies including National Life, to develop a standardized industry wide guideline on how Universal Life cases should be illustrated.
There are two steps to the Regulation.
Step 1
Effective 9/1/15 institutes an industry wide method for determining the maximum illustrated rate.
Step 2
Effective in March 2016, will institute guidelines on the illustrated loan leverage (or difference between the amount credited to the loan collateral and the interest rate for the loan).
Indexed Universal Life Changes effective September 1, 2015
The maximum illustrated rate will be capped for all index strategies at the average annual look back rate of the S&P500 annual point-to-point assuming a 100% participation rate, a 0% floor rate, and the product's current annual cap using all possible 25-year periods from the most recent 65 calendar years.
NOTE: If you choose to NOT illustrate the 2015 NAIC Regulation then the system will assume Pre 9/1/2015 maximum illustrated rates which are higher and will not comply with the new regulation.