Multitrack / Multi-track

  • Multitrack Policies. For policies which allow a policyowner to change or convert the policy from one plan or amount to another, the Policy Summary:
    • 1) Shall display all indexes and other data assuming that the option is not exercised; and
    • 2) May display all indexes and other data using a stated assumption about the exercise of the option.
  • COMMENT: An example of the type of policy subject to this subsection is adjustable life .

Model Regulation Service • January 1993 - LIFE INSURANCE DISCLOSURE MODEL REGULATION

  • 6. Multi-track plans:
    • These policies allow the insured the option to increase or decrease the amount of insurance and to change or convert the plan of insurance.
    • For these plans, I would calculate cost indexes based upon the assumption that the automatic option is exercised.
    • However, I might make additional displays of cost indexes on other options provided I stated the assumptions that pertain to the exercise of the options.

--  William T. Tozer

1981 - SOA - Individual Life Insurance Cost Disclosure Issues, Society of Actuaries - 22p